Notice of Audit of the Fiscal Affairs of Bennett County

Notice of Audit of the Fiscal Affairs of Bennett County

Notice is hereby given that the records and books of account of Bennett County, South Dakota, have been audited by the Department of Legislative Audit for the two years ended December 31, 2016, and that a detailed report thereon is filed with the county auditor of Bennett County and the Department of Legislative Audit in Pierre, South Dakota for public inspection.

The following findings and recommendations referred to in the report are hereby listed in accordance with the provisions of SDLC 4-11-12.

Current Audit Findings and Recommendations

County Interfund Loans

Finding:

In the past, the County Health Care Center Fund sustained large operation losses for several years prior to 2002. In order to continue operation, the County Health Care Center Fund borrowed money from other County funds. As of February 17, 2004, the General Fund has assumed the loans from the special revenue funds. These interfund loans were not repaid within nine months in violation of South Dakota Codified Law (SDCL) 7-21-34. This is the fifteenth consecutive audit report to contain a similar finding.

Recommendation:

1. We recommend that interfund loans be repaid in the manner required by state law.

Management’s Response:

Management chose not to respond to this finding.

Surplus Unassigned Fund Balance

Finding:

The unassigned fund balance of the General Fund exceeded the maximum allowed by South Dakota Codified Law (SDCL) 7-21-18.1 by approximately $970,000 as of December 31, 2016.

Recommendation:

2. We recommend the unassigned fund balance of the General Fund be limited to 40 percent of the next year’s General Fund appropriations as required by SDCL 7-21-18.1.

Management’s Response:

The Bennett County Board of Commissioners understand the consequences of this written comment but feel their decisions are made for the benefit of the tax payers.

Martin L. Guindon, CPA Auditor General

Department of Legislative Audit

Published twice at the total approximate cost of $58.28

Published: July 11, 18, 2018

502 Second Avenue, Martin, SD 57551 • 605-685-6866 • booster@gwtc.net