The following listing sets forth many types of governments and the statutory source for their existence.
|General Purpose Governments
|Special Purpose Governments
|Community Improvement Districts
|Municipal Power Agency
|Local Housing and Redevelopment Authorities/Commissions
|Urban Renewal Agency
|School Districts, Education Cooperatives & Multi-Districts
|Area Jail Compacts
|Bridge Commission/Interstate Toll Bridge
|Public Hospital Districts
|Rural Fire Protection Districts
|Regional Recycling and Waste Management Districts
|Predator Control District
|Community Center District (Joint)
|Water Development Districts
||SDCL 46A-3A thru 3E
||SDCL 46A-4 thru 7
|Water User Districts
|Drainage Basin Utility Districts
|Interstate Drainage Districts
|Water Project Districts
|Television Translator District
|Consumers Power Districts
||SDCL 49-35 thru 49-40
|Regional Airport Authorities
This listing is subject to change as the Legislature acts to create new governmental entity forms or to eliminate governmental entity forms. Any type of entity listed above is considered a government.
Under SDCL 1-24-19, adopted in 1995, two or more political subdivisions may enter into a joint powers agreement that may create a separate legal or administrative entity. These separate entities are subject to statutory audit requirements. Some of these entity types are:
- Distance Learning Interconnects
- Educational Benefit Cooperatives
- Local Emergency Planning Committees
- Inter-agency coordinating councils
GASB is currently studying the issue of accounting for and reporting affiliated organizations. Affiliated organizations may include: Foundations, Alumni Associations, Booster Clubs, etc.
These organizations, even though legally organized as nonprofit entities, may be subject to gaap as applicable to governments. For guidance in determining whether an organization is a component unit of another organization, see GASB Codification section 2100.
Yes, for any of those types of South Dakota entities listed above, South Dakota Codified Laws (SDCL) require that authorization to conduct an audit be obtained in advance from the Auditor General. See SDCL 4-11-7 and 4-11-7.1 Failure to obtain advance authorization could affect the validity of your audit contract.
Authorization to conduct a government audit in South Dakota is requested by forwarding a copy of an audit engagement letter (or audit contract) signed by both the auditor and the auditee. This request is usually submitted by the auditee, but the auditor should ensure his or her client has requested audit authorization prior to commencing audit field work.
Audit authorization consists of ensuring the prospective auditor is currently licensed by the SD Board of Accountancy, has not received an adverse report on his or her latest quality/peer review, and is not delinquent in completing any other authorized government audits.
Government Auditing Standards (GAS) issued by the Comptroller General of the United States require each person who is responsible for planning, directing, conducting or reporting on audits subject to GAS, to complete 80 hours of continuing professional education (CPE) in a two year period. 24 of those hours must be obtained in subjects directly related to the government environment and to government auditing. A minimum of 20 hours CPE must be obtained in any one year of the two-year period.
To aid record keeping, the same "year" used to measure CPE for the State Board of Accountancy may be used under GAS.
Appropriate training can be obtained from many sources. The Department of Legislative Audit is committed to making available to IPAs a minimum of 12 CPE hours each year specifically related to government environment and government auditing. Since 1974, the annual Government Audit Workshop has been held each spring. Recently up to 16 CPE hours have been offered annually.
Available on this WEB site are standard audit programs for municipalities and school districts.
State remittance data is also available, as is information about federal surplus property acquisitions through the SD Federal Property Agency.
Additionally, designated Department staff are available to discuss audit related accounting and legal compliance matters with you. Contact the Director of External Audits â€“ (605) 773 - 3595.
A draft audit report package consisting of the required auditorâ€™s reports, the financial statements and related notes, supplementary information, and Form SF-SAC (for Single Audits) should be submitted to the Director of External Audits for a desk review. A copy of the Checklist of Statutory Controls (for school districts and for municipalities) should also be filed with the report draft, as well as a copy of any management letter (oral comments) to be issued.
Two weeks should be allowed for the desk review process to be completed. During the two months preceding the Single Audit completion and filing deadlines for school districts (March 31) and for municipalities (September 30), more than two weeks should be allowed.
Upon completion of the desk review, a letter communicating points to be resolved is ordinarily issued to the auditor.
After review points are resolved, the final audit report package may be submitted for filing. The final audit report package becomes public information ten days after its acceptance for filing by the Auditor General.
FOR SCHOOL DISTRICTS ONLY:
Not less than ten days after the date of filing the audit reports, the Department of Legislative Audit or the private auditing firm, whichever performed the audit, shall publish for two issues in each of the official papers of the school district a brief statement of the fact that the audit was made, where the audit may be found on file for public inspection, and a brief recital of the substantial items of error, irregularity, or loss which were discovered, but with enough detail so that the public is informed of the important findings of the audit. The expense of the publication shall be paid at the legal rate by the school district. (SDCL Â§ 4-11-7.2. Publication of school district audit results.)
For ALL OTHER GOVERNMENTAL UNITS:
The Department of Legislative Audit is responsible for preparing and publishing the Notice of Audit.
The auditor-general shall at all times keep on file in his office the original copy and such additional copies as may be deemed necessary of any report of investigations, audits or examinations made by his department or any private audit under the provisions of this chapter. All of the reports shall at all times be open to public inspection ten days after date of filing in any of the public offices. (SDCL 4-11-11. Filing of audit reports - Open to public inspection.)