State of South Dakota Single Audit Report for the Year Ended June 30, 2020
- Document type
- Report
- Date
- 2020-06-30
Summary
The State of South Dakota Single Audit Report for the year ended June 30, 2020, submitted April 22, 2021 by the Bureau of Finance and Management and the Department of Legislative Audit. It includes the State's 34th Comprehensive Annual Financial Report, with the letter of transmittal, independent auditor's report, basic financial statements and a statistical section. It also contains the Schedule of Expenditures of Federal Awards, auditor's reports on internal control and compliance, the schedule of findings and questioned costs, and auditee corrective action plans. Current findings are listed for agencies including the Department of Revenue, Department of Labor and Regulation and Department of Transportation. The report closes with a summary schedule of prior audit findings, including Finding No. 2019-005 and Finding No. 2019-007 for the Soybean Research and Promotion Council.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“State of South Dakota Single Audit Report for the Year Ended June 30, 2020.”
Original at legislativeaudit.sd.gov, dated 2020-06-30. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-06-30-single-audit-report/
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STATE OF SOUTH DAKOTA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2020
KRISTI NOEM, GOVERNOR
LARRY RHODEN, LT. GOVERNOR
LIZA CLARK, CHIEF FINANCIAL OFFICER
BUREAU OF FINANCE AND MANAGEMENT
RUSS A. OLSON, AUDITOR GENERAL
DEPARTMENT OF LEGISLATIVE AUDIT
April 22, 2021
To the Citizens of the State of South Dakota; The Honorable Kristi Noem, Governor;
and Members of the South Dakota Legislature:
We submit to you herein, the Single Audit Report of the State of South Dakota for the fiscal year ended
June 30, 2020. This report includes the financial statements for the State of South Dakota as of June 30,
2020 and for the year then ended. The report also presents the audit results of the State’s compliance
with state and federal laws and regulations.
In submitting this report, we would like to express our appreciation to the staff of both the Bureau of
Finance and Management and the Department of Legislative Audit for their efforts in completing this
report. We also thank the many people in the various departments and agencies of state government
that assisted by providing information necessary for completing the report.
Respectfully Submitted,
Liza Clark, Commissioner Russell A. Olson, Auditor General
Bureau of Finance and Management Department of Legislative Audit
TABLE OF CONTENTS
Title Page
Joint Transmittal Letter
INTRODUCTORY SECTION:
Letter of Transmittal............................................................................................................................................... 1
Certificate of Achievement for Excellence in Financial Reporting ......................................................................... 8
Principal State Officials ......................................................................................................................................... 9
Functions of State Government ........................................................................................................................... 10
State Organizational Chart .................................................................................................................................. 11
FINANCIAL SECTION:
Independent Auditor’s Report .............................................................................................................................. 13
Management’s Discussion and Analysis ............................................................................................................. 17
Basic Financial Statements ................................................................................................................................. 33
Statement of Net Position .................................................................................................................................... 34
Statement of Activities ......................................................................................................................................... 36
Balance Sheet – Governmental Funds ............................................................................................................... 38
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................. 39
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ..................... 40
Reconciliation of the Change in Fund Balances of Governmental Funds to the
Statement of Activities ...................................................................................................................................... 41
Statement of Net Position – Proprietary Funds ................................................................................................... 42
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds .................................... 43
Statement of Cash Flows – Proprietary Funds ................................................................................................... 44
Statement of Fiduciary Net Position – Fiduciary Funds ...................................................................................... 46
Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................................................................... 47
Notes to the Financial Statements ...................................................................................................................... 49
Required Supplementary Information .............................................................................................................. 117
Budgetary Comparison Schedule – General Fund ........................................................................................... 118
Budgetary Comparison Schedule – Transportation Fund…………………………. ............................................ 130
Budgetary Comparison Schedule – Social Services Federal Fund .................................................................. 131
Budgetary Comparison Schedule – Budget-to-GAAP Reconciliation ............................................................... 132
Notes to Required Supplementary Information – Budgetary Reporting ............................................................ 133
Schedule of Proportionate Share of Net Pension Liability................................................................................. 134
Schedule of Contributions ................................................................................................................................. 134
Notes to Required Supplementary Information – Schedule of Proportionate Share
of Net Pension Liability (Asset) and Schedule of Contributions ..................................................................... 135
Combining Financial Statements ...................................................................................................................... 137
Combining Balance Sheet – Nonmajor Governmental Funds – By Type ......................................................... 138
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds – By Type ....................................................................... 139
Combining Balance Sheet – Nonmajor Special Revenue Funds ...................................................................... 140
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Special Revenue Funds .................................................................................... 144
Combining Balance Sheet – Nonmajor Debt Service Funds……………. ......................................................... 148
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Debt Service Funds……………………………… ........................................................................... 149
Combining Statement of Net Position – Nonmajor Enterprise Funds ............................................................... 150
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Nonmajor Enterprise Funds ........................................................................................................................... 152
Combining Statement of Cash Flows – Nonmajor Enterprise Funds ................................................................ 154
TABLE OF CONTENTS
Combining Statement of Net Position – Internal Service Funds ....................................................................... 156
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Internal Service Funds ................................................................................................................................... 158
Combining Statement of Cash Flows – Internal Service Funds ........................................................................ 160
Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds ............................................. 162
Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds .......................... 163
Combining Statement of Fiduciary Assets and Liabilities – Agency Funds ...................................................... 165
Combining Statement of Changes in Assets and Liabilities – Agency Funds .................................................. 166
Combining Statement of Net Position – Component Units ............................................................................... 168
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Component Units ........................................................................................................................................... 169
Statement of Cash Flows – Higher Education .................................................................................................. 170
Combining Statement of Net Position – Nonmajor Component Units ............................................................... 172
Combining Statement of Revenues, Expenses, and Changes in Net Position –
Nonmajor Component Units ........................................................................................................................... 173
Statement of Cash Flows – Value Added Finance Authority ............................................................................ 174
STATISTICAL SECTION:
Index to the Statistical Section ......................................................................................................................... 175
Net Position by Component ............................................................................................................................... 176
Changes in Net Position .................................................................................................................................... 177
Fund Balances, Governmental Funds ............................................................................................................... 178
Changes in Fund Balances, All Governmental Funds ...................................................................................... 179
Sales Tax Revenue Payers by Industry ............................................................................................................ 180
Taxable Sales by Industry ................................................................................................................................. 182
Ratios of Outstanding Long-Term Debt............................................................................................................. 183
Pledged Revenue Coverage ............................................................................................................................. 184
Population .......................................................................................................................................................... 185
Total Personal Income ...................................................................................................................................... 185
Unemployment Rate ......................................................................................................................................... 186
Per Capita Personal Income ............................................................................................................................. 186
Nonfarm Wage and Salary Employment by Industry ....................................................................................... 187
Expanded and New Industries ......................................................................................................................... 187
Employment by Industry Type ........................................................................................................................... 188
Full-Time Equivalent State Employees by Function of Government ................................................................ 189
Capital Asset Statistics by Function ................................................................................................................. 190
Operating Indicators by Function ..................................................................................................................... 192
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS:
Independent Auditor’s Report on Supplementary Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance ................................................................................................................ 197
Schedule of Expenditures of Federal Awards ................................................................................................... 199
Notes to the Schedule of Expenditures of Federal Awards .............................................................................. 228
AUDITOR’S REPORTS ON INTERNAL CONTROL AND COMPLIANCE:
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ................................................................... 233
Independent Auditor’s Report on Compliance for Each Major Federal Program
and Report on Internal Control Over Compliance Required by the
Uniform Guidance .......................................................................................................................................... 235
TABLE OF CONTENTS
AUDITOR PREPARED SCHEDULE OF FINDINGS AND QUESTIONED COSTS:
Index of Schedule of Findings and Questioned Costs ...................................................................................... 239
Summary of Auditor’s Results ........................................................................................................................... 240
Current Audit Findings and Recommendations
Department of Revenue ................................................................................................................................. 242
Board of Economic Development .................................................................................................................. 244
Statewide Financial Reporting Process ......................................................................................................... 245
Department of Labor and Regulation ............................................................................................................. 247
Department of Transportation ........................................................................................................................ 250
Statewide Financial Reporting Process (SEFA) ............................................................................................ 252
Corn Utilization Council .................................................................................................................................. 254
Soybean Research and Promotion Council ................................................................................................... 255
AUDITEE PREPARED CORRECTIVE ACTION PLANS:
Department of Revenue .................................................................................................................................... 257
Board of Economic Development ...................................................................................................................... 257
Statewide Financial Reporting Process............................................................................................................. 258
Department of Labor and Regulation ................................................................................................................ 258
Department of Transportation ........................................................................................................................... 259
Statewide Financial Reporting Process (SEFA) ................................................................................................ 260
Corn Utilization Council ..................................................................................................................................... 260
Soybean Research and Promotion Council ...................................................................................................... 261
AUDITEE PREPARED SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS:
Department of Revenue .................................................................................................................................... 263
Department of Human Services ........................................................................................................................ 263
Corn Utilization Council ..................................................................................................................................... 263
Soybean Research and Promotion Council ...................................................................................................... 264
205 copies of this document were printed by the Department of Legislative Audit at a cost of $17.85 per copy.
INTRODUCTORY SECTION
INTRODUCTORY SECTION
DEPARTMENT OF EXECUTIVE MANAGEMENT
BU R EAU OF FINANCE AND MANAGEMENT
500 East Capitol Ave. Pierre, South Dakota 57501-5070 Voice: (605) 773-3411 Fax: (605) 773-4711
December 31, 2020
The Honorable Kristi Noem, Governor of the State of South Dakota
The Honorable Members of the South Dakota Legislature
The Citizens of the State of South Dakota
It is a privilege to present the 34th Comprehensive Annual Financial Report (CAFR) for the State of South Dakota (the
State) for the fiscal year ended June 30, 2020.
Report. This report is prepared by the Bureau of Finance and Management as required by South Dakota Codified Law
4-4-6. The financial statements contained in the CAFR are prepared in conformity with generally accepted accounting
principles (GAAP) applicable to government as prescribed by the Governmental Accounting Standards Board
(GASB). Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the State’s management. We believe the information, as presented, is accurate in all material
respects and that all disclosures necessary to enable the reader to gain an adequate understanding of the State’s
financial affairs have been included.
Independent Auditors. The CAFR has been audited by the South Dakota Department of Legislative Audit (DLA), a
division of the legislative branch of State government. The audit was conducted in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards (GAS) issued by the Comptroller General of the United States. The Independent
Auditor’s Report (issued by DLA) includes expressions of opinions on the financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major fund and the
aggregate remaining fund information of the State as of June 30, 2020, and the respective changes in financial position
and cash flows, where applicable, for the fiscal year then ended.
In conjunction with the audit of the State’s financial statements, DLA also performs audits of major federal and state
programs and issues an opinion on the State’s compliance with the requirements of major federal programs. The results
of the audit of federal and state programs are presented in the Single Audit Report for the State.
Internal Controls. Management of the State is responsible for establishing and maintaining an effective system of
internal control designed to provide reasonable, but not absolute, assurance the State is achieving its operational,
reporting, and compliance objectives. Those objectives include, but are not limited to, the safeguarding of assets from
loss, theft, or misuse, and to ensure the reliability of financial records for the preparation of financial statements in
conformity with GAAP. The system of internal control for the State is designed to meet those objectives. The concept of
reasonable assurance recognizes that 1) the cost of a control should not exceed the benefit likely to be derived and 2)
the valuation of costs and benefits requires estimates and judgments by management.
Internal control procedures of the State are considered by DLA during its audits of the State. However, they do not
express an opinion on the effectiveness of the State’s internal control system.
Management’s Discussion and Analysis (MD&A). GAAP requires that management provide a narrative introduction,
overview, and analysis to accompany the Basic Financial Statements in the form of the MD&A. This letter of transmittal
is designed to complement the MD&A and should be read in conjunction with it. The State’s MD&A can be found
immediately following the Independent Auditor’s Report.
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PROFILE OF THE GOVERNMENT
Structure. The State entered the Union on November 2, 1889, as the 39th or 40th state (with its twin, North Dakota).
South Dakota has 75,885 square miles of land and a population estimated to be 0.9 million. As established in Article II of
the Constitution of The State of South Dakota, State government is comprised of three distinct and separate branches of
government: legislative, executive, and judicial. The State Legislature is composed of a 35-member Senate and a 70-
member House of Representatives. Legislators are elected for two-year terms and limited to four consecutive terms for
the same seat. The State has a strong executive branch with a bicameral legislative form of government. The Governor
may be elected for two consecutive four-year terms. The Governor appoints all heads of state departments who serve at
the pleasure of the Governor. The judicial branch is governed by the Unified Judicial System consisting of the Supreme
Court, circuit courts, and courts of limited jurisdiction. The State’s principal state officials, functions of state government,
and organizational chart for the fiscal year 2020 can be found immediately following this letter.
Services. State government provides services to citizens that include support for public education, public assistance,
health and human services, public safety, building and maintaining state highways, agricultural and environmental
services, community and economic development, and other general government services.
State Reporting Entity. The State’s reporting entity reflected in the CAFR includes the primary government and its
component units. The primary government consists of state departments, bureaus, boards, and commissions within
the three separate branches of government. Component units are legally separate governmental organizations for
which the State is considered to be financially accountable and other organizations for which the nature of their
relationship is such that exclusion would cause the State's financial statements to be misleading or incomplete. These
relationships are fully described in Note 1. Summary of Significant Accounting Policies in the Notes to the Financial
Statements. The financial statements emphasize the primary government and permit financial statement users to
distinguish between the primary government and its component units. Consequently, this letter of transmittal, the
MD&A, and the Basic Financial Statements focus on the primary government and its activities. Although information
pertaining to the component units is provided, their separately issued financial statements should be read to obtain a
complete overview of their financial position. Higher Education and the South Dakota Value Added Finance Authority
do not have separately issued financial statements but are included as part of the CAFR.
Budget Process. State law requires annual preparation and approval of the State's budget. The Governor presents the
annual budget to the State Legislature by the first Tuesday following the first Monday in December. The State
Legislature is required to approve a budget by the end of the legislative session. There is no provision for a continuing
resolution. The Constitution of the State of South Dakota requires the Legislature to pass a balanced annual budget in
which expenditures and appropriations may not exceed anticipated revenue. Accumulated General Fund balances may
be drawn down to balance an annual budget, if the General Fund balance remains positive. The Governor has the
power to veto individual line items in the budget approved by the State Legislature. The State budget must remain in
balance through the end of the fiscal year. Accordingly, state departments cannot encumber more General Funds than
they have been authorized to spend. During the year, the Governor may authorize intradepartmental transfers of funds
upon approval of the special committee, as long as total appropriation levels are not exceeded.
Long-term Financial Planning and Financial Policies. The State has implemented the following long-term financial
planning and financial policies:
➢ Maintaining AAA bond rating. The State has maintained its AAA public issuer rating from Standard &
Poor’s, Fitch Ratings, and Moody’s for the past four consecutive fiscal years. This represents the highest
rating possible from all three bond rating agencies. This goal was achieved by operating the State
government under several basic principles: a long history of maintaining a structurally balanced budget,
maintaining ample reserve balances, low debt, a healthy pension system, no Other Post-Employment
Benefits (OPEB) liability, timely and accurate financial reporting, long-term financial planning and budget
forecasting, and consistent conservative fiscal operations.
➢ Long-term Financial Planning. To further strengthen the financial practices of the State, state law requires
the Bureau of Finance and Management (BFM) to prepare and provide a Long-term Financial Plan, a Capital
Expenditure Plan, and a Debt Limitation and Management Policy.
The Long-term Financial Plan contains projections of both revenues and expenditures of the State. The
document gives revenue and expenditure history for the most recently completed fiscal year, and forecasts for
the current fiscal year, the next fiscal year, and the succeeding two fiscal years. Projections are shown for all
general fund revenue sources, as well as general fund budgets for all state agencies.
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The Capital Expenditure Plan includes capital projects being considered over the course of the next five fiscal
years and separates the projects into three main categories: new construction, expansion, and maintenance
and repair. This plan presents a projection of funding sources and costs for each project, as well as provides
other detailed information that adds awareness and understanding into the need and scope of each project.
The Debt Limitation and Management Policy lays out policies pertaining to the issuance, maintenance, and
servicing of debt. State law limits the amount of outstanding debt of the State to 1.2% of South Dakota’s gross
domestic product, while debt service payments may not exceed 4% of the total ongoing general fund receipts.
This plan outlines the current debt policies, financial analysis, and other metrics to measure compliance with
these statutory debt limits.
The long-term planning documents provide an early detection system, help prioritize capital planning, govern
and limit indebtedness, and allow for greater transparency. These documents can be found on the Bureau of
Finance and Management’s website at https://bfm.sd.gov.
➢ Balanced Budget. South Dakota can proudly say that fiscal year 2020 was the 130th consecutive year the State
had a balanced budget. The State has made structurally balanced budgets the norm by using one-time dollars
prudently for one-time uses and not to fund ongoing obligations.
The Constitution of the State of South Dakota requires the Governor to propose, and the Legislature to pass, an
annual budget in which expenditures and appropriations may not exceed anticipated revenue. Additionally, state
law requires BFM and the Legislature to prepare separate and independent revenue estimates for the
budgeting process and update those during the fiscal year. In years when actual revenues fall short, the State
maintains a balanced budget through spending cuts. These steps set a good fiscal example as well as help
maintain fiscal responsibility and financial stability in South Dakota.
➢ Budget Reserves. The State has two statutorily created reserve accounts: the Budget Reserve and the
General Revenue Replacement Fund. As indicated in the table below, the State has prudently maintained
“rainy day” funds of at least 10% of the General Fund expenditures while using the excess to address
emergencies and prepay liabilities.
Budget Reserves
(Expressed in Millions)
General Property Total Reserves
Revenue Tax As Percentage
As of Budget Replacement Reduction Total General Fund of General Fund
June 30 Reserve Fund Fund Reserves Expenditures Expenditures
2011 $ 43.4 $ $ 67.8 $ 111.2 $ 1,126.5 9.87%
2012 71.1 67.9 139.0 1,225.2 11.35%
2013 95.3 67.8 163.1 1,278.8 12.75%
2014 105.2 48.2 153.4 1,413.9 10.85%
2015 126.7 44.6 171.3 1,440.0 11.90%
2016 113.4 44.0 157.4 1,514.0 10.40%
2017 121.3 44.0 165.3 1,598.2 10.34%
2018 132.4 44.0 176.4 1,644.4 10.73%
2019 145.1 44.0 189.1 1,678.8 11.26%
2020 169.6 46.3 215.9 1,655.9 13.04%
The combined accrual basis balance of these two reserve accounts for fiscal year 2020 was $215.9 million.
The Budget Reserve increased from $145.1 million to $169.6 million, while the General Revenue
Replacement Fund increased from $44.0 million to $46.3 million. The $26.8 million increase from the prior
year was a result of spending $34.7 million less than General Fund appropriations, offset by $7.9 million lower
than expected General Fund revenues. Approximately $26.7 million of the General Fund savings are
attributed to Coronavirus Relief Fund federal aid reported in the COVID-19 Federal fund. The combined
reserve balance of $215.9 million is approximately 13.0% of the fiscal year 2020 General Fund total
expenditures. More information on the State’s reserve accounts and the COVID-19 Federal Fund can be
found in the MD&A.
3
➢ Financially Sound and Well-funded Retirement System. South
Dakota has one of the strongest pension plans in the nation. As Fair Value Funded Ratio
illustrated in the table, the long-term experience of South Dakota
Retirement System (SDRS) has been very favorable, resulting in a Projected
Average of Other
funded status that exceeds virtually all other state retirement systems.
As of State Retirement
June 30 SDRS Systems **
This high funding status is attributed to three primary factors: 1) the 2010 96.3% 68%
employers and members of SDRS have always made the required 2011 96.4% 74%
contributions into the fund, 2) sound long-term investment returns, and 2012 92.6% 72%
3) plan benefits and liabilities are managed in accordance with statute to 2013 100.0% 72%
2014 107.3% 77%
be sustainable based on the fixed, statutory contribution rates. SDRS is 2015 104.1% 73%
discussed later in this document. 2016 96.9% 67%
2017 100.1% 70%
➢ Comprehensive Annual Financial Report. In 1987, the State issued 2018 100.0% 72%
its first CAFR. That report contained an unmodified opinion from the 2019 100.1% 71%
2020 100.0% 70% (est.)
Department of Legislative Audit (the independent auditors). The
Independent Auditor’s Report included in this report represents the 34th ** Wilshire Consulting Report on State Retirement
consecutive year South Dakota has received an unmodified opinion on Systems: Funding Levels and Asset Allocation.
its CAFR.
➢ Internal Controls. The State has robust internal controls designed to provide reasonable assurance the State
is meeting its operational, reporting, and compliance objectives. This fact has been proven time and again
that South Dakota is a leader in operational efficiencies, while maintaining sound safeguards of its assets and
resources. The State Board of Internal Control was created in 2016. The Board’s primary responsibility is to
establish and maintain guidelines for an effective system of internal control to be implemented by state
agencies. To accomplish this, the Board oversaw work of a consulting firm to draft a Statewide Internal
Control Framework based on the COSO Internal Control Framework. The State is now working to implement
the framework in all state agencies providing even more assurance to state leaders and citizens that they are
achieving their objectives.
Lottery. The South Dakota Lottery Fund was created during the 1987 legislative session to market instant scratch
games. Video lottery was authorized during the 1989 legislative session and approval for multi-state lotto games was
given during the 1990 legislative session. The purpose of the Lottery is to provide the State additional revenues to fund
vital public programs and projects. During fiscal year 2020, the Lottery generated $127.4 million of income (before
transfers) and provided $128.4 million in transfers to other funds that improve the quality of life in South Dakota. Since its
inception in 1987, the Lottery has distributed $3.1 billion to those funds.
Retirement System. The South Dakota Retirement System (SDRS) provides retirement benefits for State employees
and those employees of local governments that participate in the system. Employers and employees contribute equal
amounts in the form of a fixed percentage of employee compensation.
SDRS funding is determined based on actuarial assumptions that are more conservative than most public pension
plans, including an annual investment return assumption of 6.50% and assumed inflation of 2.25%. The actuarial
value of assets is equal to the fair value of assets.
Certain SDRS benefit features, including the Cost of Living Adjustment (COLA) and the Variable Retirement Account
for Generational members (those hired after June 30, 2017) vary automatically based on investment returns and
system assets available to pay future benefits. SDRS COLA increases are tied to inflation and limited to the
percentage that if paid in future years, results in a SDRS fair value funded ratio of at least 100%. If the automatic
COLA adjustments are not able to result in a fair value funded ratio of at least 100%, corrective action
recommendations are immediately required. Unfunded actuarial accrued liabilities are expected only in significant
economic downturns and are expected to be temporary.
In fiscal year 2020, SDRS experienced a 1.6% (time-weighted) market return, or 4.9% less than the assumed rate of
return of 6.5%. Plan investments at fair value in fiscal year 2020 were $12.3 billion compared to $7.9 billion in fiscal year
2011.
As previously stated, as of June 30, 2020, SDRS is fully funded with an actuarial value funded ratio and a fair value
funded ratio of 100.04%. SDRS currently has no unfunded actuarial accrued liability (UAAL). The fixed statutory
employer and employee contributions support benefits that vary automatically from year-to-year based on investment
returns and the assets available to pay future benefits. If after recognizing the automatic benefit adjustments the
funded ratio of the system is below 100% or the fixed contributions are not sufficient to support the current benefits as
4
defined in statute, the SDRS Board of Trustees is required by statute to recommend corrective actions to the
Legislature.
South Dakota Retirement System is one of the few state government retirement systems in the nation to boast a net
pension asset in fiscal years 2014, 2015, 2017, 2018, 2019, and 2020 with a relatively small net pension liability in
2016.
South Dakota Retirement System
Plan Fair Primary Primary
Total Fiduciary Value Government's Government's Net
As of Pension Net Funded Proportionate Pension Asset
June 30 Liability Position Ratio Share (Liability)
2014 $9.9 billion $10.6 billion 107.3% 22.1% $159.0 million (FY15)
2015 10.4 billion 10.8 billion 104.1% 22.4% 95.2 million (FY16)
2016 10.8 billion 10.5 billion 96.9% 22.3% (75.2 million) (FY17)
2017 11.6 billion 11.6 billion 100.1% 21.6% 2.0 million (FY18)
2018 12.2 billion 12.2 billion 100.0% 21.0% 0.5 million (FY19)
2019 12.5 billion 12.5 billion 100.1% 20.7% 2.2 million (FY20)
2020 12.3 billion 12.3 billion 100.0% 20.6% * 0.9 million (FY21) *
* Unaudited
Additional information on the State’s retirement plans and the related net pension liability can be found in Note 7.
Retirement Plans in the Notes to the Financial Statements.
Health and Life Insurance Benefits. The State (rather than an insurance carrier) assumes substantially all risk
associated with claims of covered public employees for health insurance. However, an insurance carrier provides claims
administration services for health insurance. The Group Insurance Program within the Bureau of Human Resources was
established to administer and improve group health, life, and flexible benefit plans for state employees and their
dependents. The program provides for payment of benefits to eligible claimants in the most efficient and cost-effective
manner. Premiums are charged to state funds for all covered employees, while employees share in the costs of co-pays,
deductibles, and dependent costs.
Additional information on the State’s health and other insurance benefits can be found in Note 12. Self-Insurance in
the Notes to the Financial Statements.
ECONOMIC CONDITIONS AND OUTLOOK
For most of fiscal year 2020, economic activity in South Dakota remained strong. Weather and trade disputes created
headwinds for the agriculture sector, but the other sectors of the State’s economy remained healthy. COVID-19 upended
the global economy and South Dakota was no exception. The Governor declared a state of emergency on March 13th.
The governor issued an executive order encouraging the closure of schools for a short period, social distancing, remote
work, and the limiting of gatherings in enclosed spaces to 10 people. However, South Dakota did not issue any state-
wide lockdowns, did not close any businesses, nor mandate the wearing of masks.
While the state’s economy was shocked, it was not impacted nearly as much as the rest of the nation. South Dakota’s
unemployment peaked at 10.9% in April compared to the national rate of 14.9%. Unemployment dropped quickly in
South Dakota to 3.6% in October 2020 compared to a 6.9% nationally.
Tracking employment growth gives us a view of what is happening in terms of the number of jobs in the state. Looking at
both headline unemployment and changes in overall employment are both important for understanding the underlying
economic conditions in the state. Nonfarm employment, which gives us a better look into the business climate, was up
1% from February of 2019 to February 2020. When unemployment peaked in April, so did year over year losses in
nonfarm employment which were down 8.2% from April of 2019. Comparatively, nonfarm employment had increased by
1.6% in February for the nation but had fallen by 13.4% in April. Nonfarm employment in the state ended fiscal year
2020 down 5.3% in June from a year prior, while dropping 8.6% nationally during the same time period. Employment
continues to fare better in South Dakota with October of 2020 coming in down 3.2% from a year ago, compared to down
6.1% for the rest of the country.
Income growth is another important indicator of the State’s economic health. Income growth was anemic coming out of
the great recession but had increased markedly in South Dakota before the pandemic. For the 10 quarters before the
5
onset of the pandemic, quarterly personal income had increased by an average of 4.2% year over year. Thanks to the
unprecedented steps taken by Congress to inject stimulus into the economy, and the unique approach taken in South
Dakota in response to the pandemic, real personal income increased by 9.8% on a year over year basis in the second
quarter of 2020. Much uncertainty remains about the potential future stimulus bills. The state expects that once these
stimulus programs close, there will be a correction in personal income in the state.
Looking ahead to the next two years, South Dakota remains positioned for continued economic growth. The state’s key
industries, Agriculture and Tourism are well positioned with rebounding commodity prices and strong demand for
domestic travel forecast. Accommodative interest rate policy from the Federal Reserve has already positively impacted
the home building sector in the state which is expected to continue for the foreseeable future. This interest rate policy
should also support inflation, which is a key component in sales tax growth.
MAJOR INITIATIVES
With the support of the Legislature, Governor Noem has developed comprehensive funding packages to help kickstart
the South Dakota economy, grow South Dakota’s workforce, and revitalize our rural areas. Listed below are some of
the major initiatives Governor Noem has implemented in her second year of office.
Investing in Our Future. Governor Noem has been committed to ensuring that South Dakota’s infrastructure is
prepared for the economy of tomorrow. Many of the children in elementary school today will work in jobs that do not
yet exist. These jobs will no doubt require access to technology and the internet. Half of the South Dakota counties
have rural areas where one in four people do not have adequate internet access. In order to help prepare the next
generation for the jobs tomorrow and ensure South Dakotans have the opportunity to work and hire locally, while
selling globally, the broadband gap must be closed. To address broadband access in high cost areas for the second
year in a row, House Bill 1189 of the 2020 Legislative Session invested $5.0 million in one-time funding. This funding
will be used to partner with the broadband industry and will leverage additional funding in project costs. By partnering
with industry leaders on emerging technologies and investing in new technology, this funding is critical in equipping
the next generation for the jobs of the future. In addition, Senate Bill 40 of the Legislative Session authorized and
funded the construction of the University of South Dakota Health Sciences Building to educate and train the growing
healthcare workforce.
Investing in Our Workforce. The Governor strives to attract and retain the best and brightest to work for state
government. With her support, during the 2020 legislative session, the legislature adopted a 2% market adjustment for
state employee salaries. The Governor also proposed, and the legislature adopted funding to keep the state
employee health plan structurally balanced.
Investing in Our Families. The Governor believes that strong families are the key to a stronger future. The adopted
budget provides additional funding to support required training needs for individuals interested in becoming foster or
adoptive parents. Funding was also added to provide comprehensive services for child maltreatment victims across
South Dakota and to prepare female offenders in the women’s prison as they are released to their families and
communities.
In April 2020, South Dakota received $1.25 billion in Coronavirus Relief Fund (CRF) as part of the Federal
Coronavirus Aid, Relief, and Economic Security (CARES) Act. This grant to South Dakota is being used to help off-set
the costs of the COVID-19 pandemic. These funds have positioned the State to provide grants to counties, cities,
businesses, and individuals as well as off-setting COVID-19 costs of the State. Current CRF grant programs include:
Small Business and Healthcare Provider Relief Program grants. For the initial program, the State set aside up to
$580 million in CRF to assist small businesses, community-based healthcare providers, and non-profits negatively
impacted by the COVID-19 pandemic.
There are five components of this program:
• The Small Business COVID Interruption program will provide up to $400 million to help eligible South Dakota
small businesses that have experienced a reduction in business as a result of the pandemic.
• The Small Business Startup program will provide up to $10 million in direct grants to recently started eligible
South Dakota businesses whose growth has been impacted as a result of the pandemic.
• The Acute Care in Hospitals program will provide up to $15 million to eligible hospitals that are licensed by the
state to provide acute inpatient care.
• The Small Nonprofit COVID Interruption program will provide up to $40 million to eligible South Dakota small
non-profits who have experienced negative impacts as a result of the pandemic.
• The Community Based Healthcare Providers program will provide up to $115 million for eligible community
providers who have experienced a reduction in business as a result of the pandemic.
6
Re-employment Assistance. South Dakota utilized $45.6 million of the CRF dollars to replenish the South Dakota
Unemployment Insurance Compensation Trust Fund. The CARES Act allows for states to utilize CRF dollars to
replenish depleted unemployment trust funds which will allow the state to avoid a tax increase on South Dakota
employers. The State will make another payment to the Fund prior to the end of the calendar year.
Public and Private K-12 School grants. South Dakota is using up to $75 million of its CRF allocation as grants to
public and private schools in South Dakota. Each will receive $500 per student to help combat additional expenses
relating to the COVID-19 pandemic. These grants are in addition to the $41 Million the schools also received from the
U.S. Department of Education’s Elementary & Secondary Schools Emergency Relief Funds.
Housing Assistance grants. The State awarded $10 million in CRF to the South Dakota Housing Development
Authority (SDHDA) to assist South Dakotans who have been financially impacted by COVID-19 and need help with
rent, mortgage, or utility expenses.
K-12 Connect grants. South Dakota launched K-12 Connect, a program to provide internet service at no cost to
eligible households of K-12 students for the remainder of the 2020-21 school year. This program aims to minimize the
potential learning gap by ensuring all students have access to distance learning instruction and schoolwork.
Local Government COVID Assistance grants. The State created the Local Government COVID Recovery Fund
allocating $200 million to city and county governments from the State of South Dakota’s overall federal allocation.
Consistent with U.S. Treasury guidance, the $200 million allocation was divided on a statewide basis into two
categories: (1) cities (based on the percentage of South Dakota’s population living in cities and towns) and (2)
counties (based on the percentage of South Dakota’s remaining population). Cities and counties then received an
allocation from their respective category in proportion to their share of the state’s overall population. The State is
disbursing these funds to cities and counties through reimbursement of allowable expenditures.
Higher Education grants. The state has set aside more than $20 million dollars for the State’s universities and
technical colleges and $6 million for in-state private universities. These grants will help defray COVID costs of
postsecondary institutions and student expenses relating to disruptions to their education due to COVID-19.
AWARDS AND ACKNOWLEDGMENTS
Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the State of South Dakota for its comprehensive annual financial
report for the fiscal year ended June 30, 2019. This was the fourth consecutive year that the government has achieved
this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual
financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to
GFOA to determine its eligibility for another certificate.
The preparation of this CAFR required the collective efforts of many financial personnel throughout the State from
various agencies and departments. I sincerely appreciate the dedicated efforts of all these individuals. I would like to
recognize and commend the efforts of the accounting staff of each state agency and the staff of the Department of
Legislative Audit. I would also like to acknowledge the Bureau of Finance and Management staff, Keith Senger, Amanda
Werre, Amy Macy, Lori Sears, Dominique Ruppelt, Mark Edwardson, Brian Englund, Jacob Harris, Randi Olson, Tiffany
Ripperda, Torin Peterson, Robert Norwick, and Adam Hansen for their talents in making this report possible.
This report continues our commitment to the citizens of the State of South Dakota, the Governor, the Legislature, and
the financial community, to maintain the highest standards of accountability and financial reporting.
Respectfully Submitted,
Liza Clark, Chief Financial Officer
Bureau of Finance and Management
7
I
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
State of South Dakota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
8
SOUTH DAKOTA
FY2020 PRINCIPAL STATE OFFICIALS
EXECUTIVE BRANCH
The Honorable Kristi Noem, Governor
The Honorable Larry Rhoden, Lieutenant Governor
CONSTITUTIONAL OFFICERS
The Honorable Jason R. Ravnsborg, Attorney General
The Honorable Steve Barnett, Secretary of State
The Honorable Josh Haeder, Treasurer
The Honorable Rich Sattgast, Auditor
The Honorable Ryan Brunner, Commissioner, School and Public Lands
PUBLIC UTILITIES COMMISSION
The Honorable Kristie Fiegen, Commissioner
The Honorable Gary Hanson, Commissioner
The Honorable Chris Nelson, Commissioner
LEGISLATIVE BRANCH JUDICIAL BRANCH
The Honorable Brock Greenfield The Honorable David E. Gilbertson
Senate President Pro Tempore Chief Justice
The Honorable Steve Haugaard The Honorable Janine M. Kern
Speaker of the House Associate Justice
The Honorable Kris Langer The Honorable Steven R. Jensen
Senate Majority Leader Associate Justice
The Honorable Troy Heinert The Honorable Mark E. Salter
Senate Minority Leader Associate Justice
The Honorable Lee Qualm The Honorable Patricia J. DeVaney
House Majority Leader Associate Justice
The Honorable Jamie Smith
House Minority Leader
9
SOUTH DAKOTA
FY2020 FUNCTIONS OF STATE GOVERNMENT
GENERAL GOVERNMENT AGRICULTURE AND
NATURAL RESOURCES
Executive Management
Revenue Agriculture
Lottery Game, Fish and Parks
Legislature Environment and Natural Resources
School and Public Lands
Secretary of State
State Treasurer
State Auditor TRANSPORTATION
Transportation
HEALTH, HUMAN, AND
SOCIAL SERVICES
EDUCATION
Social Services
Health Education
Labor and Regulation Elementary, Secondary, and Vocational
Veterans’ Affairs Schools
Human Services Higher Education
Retirement System State Aid to Universities
LAW, JUSTICE, PUBLIC ECONOMIC RESOURCES
PROTECTION,
AND REGULATION Tourism
Economic Development
Corrections Tribal Relations
Unified Judicial System
Attorney General
Public Safety PANDEMIC RESPONSE
Military
Appraiser Program
Labor Financial Services COVID-19 Federal
Labor Boards and Commissions
Revenue – Commission on Gaming
Public Utilities Commission
10
SOUTH DAKOTA
VOTERS
LIEUTENANT
SUPREME GOVERNOR
GOVERNOR LEGISLATURE
COURT ATTORNEY
GENERAL
SECRETARY OF
UNIFIED LEGISLATIVE
DEPT. OF STATE
DEPT. OF DEPT. OF JUDICIAL RESEARCH
EXECUTIVE SYSTEM COUNCIL
REVENUE AGRICULTURE STATE
MANAGEMENT
AUDITOR
DEPT. OF
DEPT. OF LEGISLATIVE STATE
DEPT. OF
BUREAU OF GAME, FISH TREASURER
TOURISM AUDIT
FINANCE & & PARKS
MANAGEMENT SCHOOL AND
PUBLIC LANDS
DEPT. OF DEPT. OF
BUREAU OF
TRIBAL RELATIONS SOCIAL SERVICES PUBLIC UTILITIES
ADMINISTRATION
COMMISSION
BUREAU OF DEPT. OF
DEPT. OF
INFORMATION & LABOR AND
HEALTH
TELECOMMUNICATIONS REGULATION
BUREAU OF
DEPT. OF DEPT. OF
HUMAN
TRANSPORTATION EDUCATION
RESOURCES
DEPT. OF DEPT. OF
PUBLIC SAFETY THE MILITARY
DEPT. OF DEPT. OF
VETERANS' AFFAIRS CORRECTIONS
DEPT. OF
DEPT. OF
ENVIRONMENT AND
HUMAN SERVICES
NATURAL RESOURCES
BOARD OF
REGENTS
11
12
FINANCIAL SECTION
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
The Honorable Kristi Noem
Governor of South Dakota
and
Members of the Legislature
State of South Dakota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the State of South Dakota (State), as of and for the year ended
June 30, 2020, and the related notes to the financial statements, which collectively comprise the State’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit
the financial statements of the Unemployment Insurance Fund, the South Dakota Retirement System, the
South Dakota Housing Development Authority, the South Dakota Ellsworth Development Authority and
foundations of Higher Education. Those financial statements reflect total assets and deferred outflows of
resources and revenues and additions of the business-type activities, the aggregate discretely presented
component units, and the aggregate remaining fund information as follows:
Percent of Percent of Total
Total Assets* Revenues/Additions
Government-wide financial statements:
Business-type activities:
Unemployment Insurance Fund 13.7% 49.2%
Fund financial statements:
Aggregate discretely presented component units:
South Dakota Housing Development Authority 41.6% 13.3%
South Dakota Ellsworth Development Authority .6% .3%
Foundations of Higher Education 16.5% 8.3%
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Major enterprise fund:
Unemployment Insurance Fund 100.0% 100.0%
Aggregate remaining fund information:
South Dakota Retirement System 89.3% 22.3%
* including deferred outflows of resources
Those statements were audited by other auditors whose reports have been furnished to us, and our
opinions, insofar as they relate to the amounts included for these entities, are based solely on the reports
of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement. The financial statements of the discretely presented component units
(foundations) of Higher Education were not audited in accordance with Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental activities,
the business-type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the State as of June 30, 2020, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 2 to the financial statements, certain errors resulting in an understatement of employer
taxes receivable as of June 30, 2019 in the Unemployment Insurance Fund, a major fund of the State, were
discovered by management during the year. Accordingly, the amounts reported for beginning net position
have been restated in the financial statements to correct for this error. The opinion of other auditors is not
modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 17 through 32, the budgetary comparison schedules on pages 118
through 133, and the Schedules of Proportionate Share of the Net Pension Liability (Asset) and Employer
Contributions on pages 134 through 135 be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
14
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the State’s basic financial statements. The supplementary information, such as the combining
and individual fund financial statements on pages 138 through 174 and the other information, such as the
introductory and statistical sections on pages 1 through 11 and 175 through 195, respectively, are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America by us and other auditors. In our
opinion, based on our audit, the procedures performed as described above, and the reports of other
auditors, the combining and individual fund financial statements are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 31,
2020 on our consideration of the State’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the State’s internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the State’s internal
control over financial reporting and compliance.
Russell A. Olson
Auditor General
December 31, 2020
15
16
MANAGEMENT’S DISCUSSION AND ANALYSIS
The following is a discussion and analysis of the State of South Dakota’s (hereinafter referred to as the State) financial
performance and position, providing an overview of the State’s financial activities for the fiscal year ended June 30,
2020. This document begins with a one-page summary of financial highlights, followed by a more detailed overview of
the financial statements and financial analysis. Please read it in conjunction with the transmittal letter found on page 1
in the Introductory Section of this report and with the State’s financial statements that follow this section.
FINANCIAL HIGHLIGHTS
Government-wide Financial Statements
• Total assets and deferred outflows of resources of the State exceeded its total liabilities and deferred inflows of
resources at the close of the fiscal year by $7.4 billion (reported as net position). Of this amount, $6.0 billion is
restricted for specific uses or invested in capital assets. The remaining $1.4 billion is unrestricted and may be
used to meet the government’s ongoing obligations. However, certain resources within this unrestricted net
position have internally imposed limitations that are discussed within the Government-wide Financial Analysis
section of this document.
• The State’s total net position increased by $371.9 million, or 5.3% from the prior fiscal year. Net position of
Governmental Activities increased by $328.2 million, or 5.3%, while net position of Business-type Activities
increased by $43.6 million, or 5.7% over the prior fiscal year.
• Discretely presented component units reported total net position of $2.6 billion, an increase of $140.6 million,
or 5.8% from the prior fiscal year.
Fund Financial Statements
• The State’s governmental funds reported combined ending fund balances of $2.3 billion, an increase of $179.0
million, or 8.5% from the prior fiscal year. Of the $2.3 billion in combined ending fund balance, $587.4 million is
non-spendable and $1.1 billion is restricted by outside sources or enabling legislation. Another $51.2 million is
committed by state law and $162.0 million has been assigned for various specific purposes. The remaining
$373.0 million is unassigned. Please refer to Note 10. Fund Balance and Net Position in the Notes to the
Financial Statements for further explanation and breakdown of these balances. Certain resources within the
$373.0 million of the unassigned fund balance have internally imposed limitations that are discussed throughout
the Financial Analysis of the State’s Funds section of this document.
• At the end of the fiscal year, the General Fund had a fund balance of $526.4 million. This includes total budget
reserves of $215.9 million, comprised of the Budget Reserve and the General Revenue Replacement Fund of
$169.6 million and $46.3 million, respectively.
• The State’s three trust funds (Dakota Cement Trust, Education Enhancement Trust, and Health Care Trust all
reported as special revenue funds) and the State’s Permanent Fund all increased in value during the fiscal year
because investment earnings and transfers into these funds exceeded statutory disbursements. After
transferring a combined amount of $41.7 million to the General Fund, these funds closed the fiscal year with a
combined ending fund balance of $1.1 billion, an increase of $11.8 million.
• Proprietary funds reported net position at fiscal year-end of $852.3 million, an increase of $68.5 million, or 8.7%
from the prior fiscal year.
Long-Term Debt
• The primary government’s total long-term debt (revenue bonds and capital leases) as of June 30, 2020, totaled
$631.4 million, a decrease of $41.6 million from the last fiscal year-end. The decrease represents the net
difference between new issuances, payments, and the refunding and defeasance of outstanding debt.
• The South Dakota Building Authority issued $7.1 million of revenue bonds for the primary government and
$65.8 million of revenue bonds for Higher Education, a discreetly presented component unit of the State. These
bonds were used for refunding of prior issued bonds.
• The South Dakota Housing Development Authority, a discreetly presented component unit of the State, issued
$198.0 million in bonds. A portion of these bonds were used for refunding of prior issued bonds.
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OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the State’s Basic Financial Statements. The
State’s Basic Financial Statements are comprised of three components: (1) Government-wide Financial Statements,
(2) Fund Financial Statements, and (3) Notes to the Financial Statements. This report also contains Required
Supplementary Information and Other Supplementary Information in addition to the Basic Financial Statements.
Government-wide Financial Statements (Reporting the State as a whole)
The Government-wide Financial Statements are designed to provide readers with a broad overview of the State’s
finances in a manner similar to a private-sector business. The statements provide both short-term and long-term
information about the State’s financial position that aids in assessing the State’s economic condition at the end of the
fiscal year. These statements include all nonfiduciary assets and liabilities, using the flow of economic resources
measurement focus and the accrual basis of accounting. The current year’s revenues and expenses are taken into
account, regardless of when cash is received or paid. The Government-wide Financial Statements include two
statements:
• The Statement of Net Position presents information on all of the State’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources with the difference between them being reported as net
position. Over an extended period of time, increases and decreases in net position may serve as a useful
indicator of whether the financial position of the State is improving or deteriorating.
• The Statement of Activities presents information depicting how the State’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes
and earned but unused vacation leave).
Both the Statement of Net Position and the Statement of Activities segregate the activities of the State into three types:
• Governmental Activities. Most of the State’s services provided to the citizens of the State are reported
with the Governmental Activities. The Governmental Activities of the State include the following:
➢ General government
➢ Education – elementary, secondary, and vocational schools
➢ Education – state support to higher education
➢ Health, human, and social services
➢ Law, justice, public protection, and regulation
➢ Agriculture and natural resources
➢ Economic resources
➢ Transportation
➢ Pandemic Response (new for fiscal year 2020)
➢ Intergovernmental – payments to school districts
➢ Intergovernmental – revenue sharing
➢ Unallocated interest expense
➢ Unallocated depreciation
Taxes, fees, unrestricted investment earnings, and intergovernmental revenues (federal grants) finance most
of the costs of these activities.
• Business-type Activities. The State operates Business-type Activities much like private-sector companies
by charging fees to customers to help cover all or most of the costs of certain services it provides. The Lottery
Fund is an example of a Business-type Activity.
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• Discretely Presented Component Units. Component units are legally separate organizations for which
the State is financially accountable, or the nature and significance of the unit’s relationship with the State is
such that exclusion of the unit would cause the State’s financial statements to be misleading or incomplete. The
following entities are included in the component unit columns of the State’s Government-wide Financial
Statements:
➢ South Dakota Housing Development Authority
➢ South Dakota Science and Technology Authority
➢ Higher Education
➢ South Dakota Economic Development Finance Authority
➢ South Dakota Value Added Finance Authority
➢ South Dakota Ellsworth Development Authority
➢ The South Dakota Authority Captive Insurance Company, LLC
➢ The South Dakota Property and Casualty Captive Insurance Company, LLC
Other component units are blended and reported as part of primary government or considered related
organizations and not reported in these financial statements. For additional information regarding component
units, refer to Note 1. Summary of Significant Accounting Policies in the Notes to the Financial Statements.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific
activities or objectives. The State, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. Some funds are required by law, while others are
established internally to maintain control over a particular activity. All funds of the State can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds. It is important to note that these categories use
different accounting approaches and should be interpreted differently.
• Governmental Funds. Most of the State’s basic services are reported in governmental funds, which focus
on how money flows into and out of those funds and the balances remaining at year-end that are available for
future spending. The Governmental Fund Financial Statements provide a detailed short-term view of the State’s
general government operations and the basic services it provides. Governmental fund information helps
determine the financial resources that can be spent in the near future to finance the State’s programs. These
funds are reported using modified accrual accounting, which measures cash and all other financial assets that
can readily be converted to cash. Governmental funds include the General Fund, special revenue, capital
projects, debt service, and permanent funds.
Since the focus of governmental funds is narrower than that of the Government-wide Financial Statements, it
is useful to compare the information presented for governmental funds with similar information presented for
Governmental Activities in the Government-wide Financial Statements. By doing so, readers may better
understand the long-term impact of the State’s short-term financing decisions. Both the Governmental Funds
Balance Sheet and the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund
Balances provide a reconciliation to facilitate this comparison between governmental funds and Governmental
Activities. These reconciliations are presented on the page immediately following each governmental fund
financial statement.
The State maintains many individual governmental funds. Information is presented separately in the
Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances for the General Fund, Transportation Fund, Social Services Federal Fund,
COVID-19 Federal Fund, Dakota Cement Trust Fund, and Education Enhancement Trust Fund, which are
considered to be major funds. Data from the remaining governmental funds are combined into a single,
aggregated presentation. Individual fund data for some nonmajor governmental funds is provided in the form of
combining statements elsewhere in this report.
• Proprietary Funds. Proprietary funds include: (1) enterprise funds and (2) internal service funds. These
funds account for the State’s activities that operate much like private sector businesses. Like the Government-
wide Financial Statements, proprietary fund statements are presented using the accrual basis of accounting.
19
➢ Enterprise funds are used to account for activities that largely involve customers outside of state
government and are reported as Business-type Activities in the Government-wide Financial
Statements.
➢ Internal service funds are used to account for activities that largely involve other state agencies. The
internal service fund activities are consolidated with the Governmental Activities in the Government-
wide Financial Statements because those services predominantly benefit Governmental rather than
Business-type Activities.
The State maintains several individual proprietary funds. The following four are considered major funds: Lottery
Fund, Clean Water State Revolving Fund, Drinking Water State Revolving Fund, and Unemployment Insurance
Fund . These four proprietary funds are presented separately in the Proprietary Funds Statement of Net Position
and Statement of Revenues, Expenses, and Changes in Net Position. Information from the remaining funds is
combined into two separate, aggregated columns by proprietary fund type. Individual fund data for some
nonmajor proprietary funds is provided in the form of combining statements elsewhere in this report.
• Fiduciary Funds. Fiduciary funds are used to report activities when the State acts as a trustee or fiduciary
to hold resources for the benefit of parties outside state government. The accrual basis of accounting is used
for fiduciary funds and is similar to the accounting used for proprietary funds. The Government-wide Financial
Statements exclude fiduciary fund activities and balances because these assets are restricted in purpose and
cannot be used by the State to finance operations.
The State’s fiduciary funds include pension trust funds, private purpose trust funds, and agency funds. Individual
fund data for some of the fiduciary funds is included in the combining financial statements elsewhere in this
report.
Notes to the Financial Statements
The Notes to the Financial Statements are an integral part of the financial statements and provide additional narrative
and financial information essential to fully understand the data provided in the Government-wide Financial Statements
and the Fund Financial Statements. The Notes to the Financial Statements are located immediately following the
fiduciary funds’ financial statements.
Required Supplementary Information
The Basic Financial Statements are followed by a section of Required Supplementary Information. This section includes
Budgetary Comparison Schedules; two pension-related schedules; and related notes.
The Budgetary Comparison Schedules are for the General Fund and for each major special revenue fund that has a
legally adopted annual budget. The only special revenue funds that fit this criterion are the Transportation Fund and the
Social Services Federal Fund. These schedules present the original and final appropriated expenditure budgets and
estimated receipts (General Fund only) for the fiscal year. The Budgetary Comparison Schedule also lists the actual
inflows and outflows, and balances stated on a budgetary basis. A variance column is included to compare the final
appropriated budget with the actual budget results.
Because accounting principles used to present budgetary basis differ significantly from those used to present financial
statements in conformity with Generally Accepted Accounting Principles (GAAP), a Budget-to-GAAP Reconciliation can
be found immediately following the Budgetary Comparison Schedule. The Budget-to-GAAP Reconciliation explains the
differences between budgetary inflows and outflows to GAAP revenues and expenditures.
The pension related schedules include the Schedule of Proportionate Share of Net Pension Liability (Asset) and the
Schedule of Contributions. The first schedule highlights key amounts relating to the State’s share of the Net Pension
Liability (Asset). The second schedule illustrates contributions as a percentage of the State’s covered-employee payroll.
Other Supplementary Information
Other Supplementary Information includes Combining Financial Statements for nonmajor governmental funds,
proprietary funds, fiduciary funds, and component units that are incorporated into the Basic Financial Statements.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
As presented in the following table, total assets and deferred outflows of resources of the State on June 30, 2020 were
$9.8 billion, while total liabilities and deferred inflows of resources were $2.5 billion, resulting in combined net position
(Governmental and Business-type Activities) of $7.4 billion, a 5.3% increase from the previous year. As discussed later
in this document, a significant portion of this increase is directly attributed to increases in capital assets and strong
returns on investment in the State’s three trust funds and the Permanent Fund.
State of South Dakota
Net Position as of June 30
(Expressed in Thousands)
Governm ental Activities Business-type Activities Total Prim ary Governm ent % of
FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 Change
Current and Other Assets, as restated $ 4,065,121 $ 2,609,791 $ 1,176,990 $ 1,138,357 $ 5,242,111 $ 3,748,148 39.9%
Capital Assets 4,467,766 4,324,690 6,555 6,651 4,474,321 4,331,341 3.3%
Total Assets, as restated 8,532,887 6,934,481 1,183,545 1,145,008 9,716,432 8,079,489 20.3%
Deferred Outflow s of Resources 116,960 173,633 10,010 12,293 126,970 185,926 (31.7)%
Current and Other Liabilities 1,602,868 403,569 34,391 18,018 1,637,259 421,587 288.4%
Noncurrent Liabilities 429,717 422,859 354,389 378,296 784,106 801,155 (2.1)%
Total Liabilities 2,032,585 826,428 388,780 396,314 2,421,365 1,222,742 98.0%
Deferred Inflow s of Resources 43,715 36,381 1,041 877 44,756 37,258 20.1%
Net Position:
Net Investment in Capital Assets 4,259,851 4,126,405 6,552 6,650 4,266,403 4,133,055 3.2%
Restricted 1,726,738 1,755,692 14,758 5,821 1,741,496 1,761,513 (1.1)%
Unrestricted, as restated 586,958 363,208 782,424 747,639 1,369,382 1,110,847 23.3%
Total Net Position, as restated $ 6,573,547 $ 6,245,305 $ 803,734 $ 760,110 $ 7,377,281 $ 7,005,415 5.3%
Percent of Total Primary Government
Net Position 89.1% 89.1% 10.9% 10.9% 100.0% 100.0%
In fiscal year 2020, Governmental Activities accounted for 89.1% of the State’s total net position, and Business-type
activities accounted for 10.9%, unchanged from the prior fiscal year.
Net Investment in Capital Assets
The largest component of the State’s net position, $4.3 billion or 57.8%, reflects investments in capital assets (land,
land improvements, buildings, equipment, vehicles, infrastructure, intangible assets, and construction in progress), less
depreciation and all outstanding debt that was issued to buy or build those assets. This represents a $133.3 million, or
3.2% increase in the State’s investment in capital assets from the prior fiscal year. This increase is primarily attributed
to continued construction of infrastructure (highways and bridges) without the issuance of related debt. For more
information please refer to the Capital Assets and Debt Administration section of this document and Note 6. Capital
Assets in the Notes to the Financial Statements. The State uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the State’s investment in its capital assets
is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since capital assets themselves cannot be used to liquidate these liabilities.
Restricted Net Position
Total restricted net position at year-end was $1.7 billion, or 23.6% of total net position, a decrease of $157.8 million, or
8.3% from the prior fiscal year. The net position is subject to restrictions either (1) externally imposed by creditors (such
as debt covenants), grantors, contributors, or laws/regulations of other governments, or (2) imposed by law through
constitutional provisions or enabling legislation on how they can be used.
A majority of the restricted net position is accounted for in the State’s three trust funds and the State’s Permanent Fund.
Two of these trust funds (Education Enhancement Trust and Health Care Trust) and the Permanent Fund are held as
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permanent investments, either as nonexpendable ($558.3 million) or expendable ($256.1 million), and the third trust
fund (Dakota Cement Trust) is restricted for education ($333.8 million).
The combined fund balance of these four funds totals $1.1 billion. Aside from the constitutionally authorized annual
distributions, these funds can only be accessed through a constitutional amendment (Dakota Cement Trust and
Permanent Fund) or by a three-fourths vote of the Legislature (Health Care Trust Fund and Education Enhancement
Trust).
The remaining $593.2 million of restricted net position is restricted for highways ($222.8 million), agriculture and natural
resources ($86.9 million), pensions ($71.5 million), economic development ($55.6 million), railroads ($24.4 million), and
debt service ($23.5 million), with the remaining amount for other purposes.
Unrestricted Net Position
The remaining net position balance, $1.4 billion, or 18.6% is defined by accounting standards as “unrestricted” net
position. However, some of the unrestricted net position balances cannot be used to meet the State’s general ongoing
obligations to citizens and creditors as resources because of limitations imposed by federal regulations, bond
covenants, constitutional provision, or state law. Limitations on unrestricted net position imposed by federal regulations
and bond covenants include $260.1 million within the Clean Water State Revolving Fund and $210.2 million within the
Drinking Water State Revolving Fund. Other federal and state regulation limitations include, but are not limited to, $147.1
million for Unemployment Insurance Fund, $119.7 million within the Revolving Economic Development and Initiative
Fund, and $8.3 million for revolving loan programs.
Those funds with limitations imposed by state law include the following:
• Budget Reserve ($169.6 million). The 1991 South Dakota Legislature established a Budget Reserve
whereas expenditures out of the Budget Reserve shall only be used by special appropriation (which requires a
two-thirds vote of all the members of each house of the Legislature) and shall only redress such unforeseen
expenditure obligations or such unforeseen revenue shortfalls as may constitute an emergency pursuant to
S.D. Const., Art. III, § 1. Revenues deposited in the Budget Reserve include unobligated General Fund cash
remaining at the end of a fiscal year up to an amount equal to 10% of the General Fund appropriations in the
General Appropriations Act for the previous fiscal year.
The balance in the Budget Reserve at June 30, 2020 was $169.6 million, an increase of $24.5 million from the
prior fiscal year. This transfer into the Budget Reserve, as required by law, was the result of spending $34.7
million less than General Fund appropriations, offset by $7.9 million lower than expected General Fund
revenues. Approximately $26.7 million of the General Fund savings are attributed to Coronavirus Relief Fund
federal aid reported in the COVID-19 Federal fund.
• General Revenue Replacement Fund ($46.3 million). House Bill 1050, passed during the 2015
Legislative Session, created the “General Revenue Replacement Fund” (GRRF). This fund is to be used to
balance the General Fund annual budget due to an unforeseen revenue shortfall. Revenues deposited in the
GRRF include unobligated General Fund cash remaining at the end of a fiscal year after the transfer into the
Budget Reserve, if the amount in the GRRF does not exceed 15% of the General Fund appropriations in the
General Appropriations Act for the previous fiscal year.
During fiscal year 2020, the GRRF increased by $2.3 million. Similar to the transfer into the Budget Reserve,
the increase to the GRRF is the result of the transfer, as required by law, of unspent General Fund
appropriations, offset by lower than expected General Fund revenues, and Coronavirus Relief Fund federal aid
reported in the COVID-19 Federal fund.
The unrestricted net position increased by $396.3 million, or 40.7% during the fiscal year. A significant portion of this
increase is attributed to (1) $26.8 million combined transfers into the Budget Reserve and GRRF (as discussed above),
(2) $62.2 million and $87.1 million increases in assigned and unassigned fund balance in the General Fund, (3) $11.7
million increase in the Clean Water State Revolving Fund, (4) $10.9 million increase in the Drinking Water State
Revolving fund, and (5) $9.3 million increase in the Unemployment Insurance Fund. For analysis on these four funds,
please see the Financial Analysis of the State’s Funds section in this document. Most of the remainder is attributed to
small changes in unassigned fund balance in various funds.
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Changes in Net Position
The following table summarizes financial information derived from the Government-wide Statement of Activities and
reflects how the State’s net position changed during fiscal year 2020:
State of South Dakota
Change in Net Position
for the Fiscal Year Ending June 30
(Expressed in Thousands)
Governm ental Activities Business-type Activities Total Prim ary Governm ent % of
FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 Change
Revenues:
Program Revenues:
Charges for Service, as restated $ 507,286 $ 496,098 $ 249,124 $ 263,594 $ 756,410 $ 759,692 (0.4)%
Operating Grants and Contributions 1,918,543 1,589,862 261,674 26,910 2,180,217 1,616,772 34.8%
Capital Grants and Contributions 16,761 3,378 19 200 16,780 3,578 369.0%
General Revenues:
Sales Taxes 1,149,732 1,089,336 1,149,732 1,089,336 5.5%
Motor Fuel Taxes 184,949 184,027 184,949 184,027 0.5%
Contractors Excise Taxes 132,043 118,873 132,043 118,873 11.1%
Bank Card and Franchise Taxes 44,727 35,411 44,727 35,411 26.3%
Other Taxes 385,180 376,813 385,180 376,813 2.2%
Investment Earnings 91,816 96,270 91,816 96,270 (4.6)%
Gain on Sale of Capital Assets 1,515 1,978 1,515 1,978 (23.4)%
Miscellaneous 61,664 79,632 61,664 79,632 (22.6)%
Total Revenues, as restated 4,494,216 4,071,678 510,817 290,704 5,005,033 4,362,382 14.7%
Program Expenses:
General Government 209,723 215,879 209,723 215,879 (2.9)%
Education – Elementary, Secondary,
and Vocational Schools 223,524 228,729 223,524 228,729 (2.3)%
Education – State Support to Higher Education 229,545 213,843 229,545 213,843 7.3%
Health, Human, and Social Services 1,544,824 1,552,490 1,544,824 1,552,490 (0.5)%
Law , Justice, Public Protection, and Regulation 313,534 301,008 313,534 301,008 4.2%
Agriculture and Natural Resources 157,010 155,789 157,010 155,789 0.8%
Economic Resources 45,920 71,819 45,920 71,819 (36.1)%
Transportation 676,547 533,336 676,547 533,336 26.9%
Pandemic Response 116,299 116,299
Intergovernmental – Payments to School Districts 563,878 559,484 563,878 559,484 0.8%
Intergovernmental – Revenue Sharing 196,425 194,537 196,425 194,537 1.0%
Unallocated Interest Expense 6,861 7,524 6,861 7,524 (8.8)%
Unallocated Depreciation 53 53 53 53 0.0%
Lottery 50,484 51,016 50,484 51,016 (1.0)%
Clean Water State Revolving 13,516 11,662 13,516 11,662 15.9%
Drinking Water State Revolving 9,349 8,222 9,349 8,222 13.7%
Unemployment Insurance 241,343 26,403 241,343 26,403 814.1%
Other 30,696 28,928 30,696 28,928 6.1%
Total Expenses 4,284,143 4,034,491 345,388 126,231 4,629,531 4,160,722 11.3%
Excess (Deficiency) Before Transfers, as restated 210,073 37,187 165,429 164,473 375,502 201,660
Special Items - Impairment of Capital Asset (3,636) (4,702) (3,636) (4,702)
Transfers 121,805 125,977 (121,805) (125,977)
Change in Net Position, as restated 328,242 158,462 43,624 38,496 371,866 196,958
Net Position – Beginning, as restated 6,245,305 6,086,843 760,110 721,614 7,005,415 6,808,457
Net Position – Ending, as restated $ 6,573,547 $ 6,245,305 $ 803,734 $ 760,110 $ 7,377,281 $ 7,005,415
Percent Change in Total
Net Position from prior year 5.3% 5.7% 5.3%
Governmental Activities:
The State’s net position for Governmental Activities at the end of fiscal year 2020 was $6.6 billion. This represents an
increase of 5.3% or $328.2 million from the prior fiscal year.
The $328.2 million increase in the State’s net position for Governmental Activities was the result of the net effect of the
following: (1) $4.5 billion revenues (an increase from the prior fiscal year of $422.5 million); less (2) $4.3 billion expenses
(an increase from the prior fiscal year of $249.7 million); (3) less $3.6 million for special items; plus (4) net transfers of
$121.8 million (primarily from the South Dakota Lottery Fund).
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The following two charts illustrate the above program revenues and expenses for Governmental Activities for fiscal year
ending June 30, 2020:
State of South Dakota State of South Dakota
Revenues - Governmental Activities Expenses - Governmental Activities
Fiscal Year Ended June 30, 2020 Fiscal Year Ended June 30, 2020
Gain on Sale of
Intergovernmental -
Capital Assets Unallocated
Investment Miscellaneous Revenue Sharing
0.03% Interest Expense
Earnings 1.37% 4.58%
0.16%
2.04% General
Government
4.90% Education:
Other Taxes Intergovernmental - Elementary,
8.57% Payments to Secondary, and
School Districts Vocational Schools
Bank Card and
13.16% 5.22%
Franchise Taxes Charges for Service
1.00% 11.29%
Education: State
Contractors Excise Support to
Taxes Universities
2.94% 5.36%
Pandemic
Motor Fuel Taxes Response
4.12% 2.71%
Transportation
15.79%
Health, Human,
Economic and Social Services
Resources 36.06%
Sales Tax Operating Grants 1.08%
25.58% and Contributions
42.69% Agriculture and
Natural Resources
Capital Grants and 3.66%
Contributions Law, Justice, Public
0.37% Protection, and
Regulation
7.32%
Total Revenues $4.5 Billion Total Expenses $4.3 Billion
This fiscal year, the State received 42.2% of its revenues from taxes (sales, motor fuel, contractors excise, bank card,
bank franchise, and other taxes), and 42.7% from federal grants and contributions. Charges for service accounted for
11.3%.
In fiscal year 2020, health, human, and social services (taking care of people) accounted for 36.1% of the State’s
expenses, followed by 23.8% to education (K-12 and post-secondary), 15.8% to transportation (constructing and
maintaining roads and bridges), and 7.3% for law, justice, public protection, and regulation (protecting people).
Significant changes in revenues include a $73.6 million increase in sales, use, and contractors excise tax. This increase
is due to a steadily growing South Dakota economy and increasing construction activity. South Dakota, like the rest of
the nation, experienced economic slowdown due to the pandemic. However, South Dakota did not mandate any state-
wide lockdowns or business closures, allowing the South Dakota economy to grow during the year. Additionally, federal
pandemic stimulus injected into the South Dakota economy encouraged spending. Another significant increase in
revenue includes a $328.7 million increase in federal grants and contributions attributed to increases in the
transportation and COVID-19 funding. All of these increases are further discussed in General Fund, Transportation, and
COVID-19 Federal fund analysis of the Financial Analysis of the State’s Funds section in this document.
Most of the increase in expenses is attributed to an increase of $143.2 million in Transportation and $116.3 million
increase in Pandemic Response functions of government. These increases are further explained in the Transportation
and COVID-19 Federal fund analysis of the Financial Analysis of the State’s Funds section in this document.
Business-type Activities:
Net position of the Business-type Activities at the end of fiscal year 2020 was $803.7 million, an increase of $43.6 million
due to total revenues exceeding total expenses and transfers out. Although net position for Business-type Activities only
accounts for roughly 10.9% of the total net position, Business-type Activities provided $121.8 million in net transfers to
Governmental Activities to help fund current operations, most of which came from the South Dakota Lottery Fund.
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FINANCIAL ANALYSIS OF THE STATE’S FUNDS
As noted earlier, the State uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. Some funds are required by law, while others are established internally to maintain control over a
particular activity.
Governmental Funds
The focus of the State’s governmental funds is to provide information on near-term inflows and outflows during the fiscal
year and on balances of spendable resources as of fiscal year-end. Such information is useful in assessing the State’s
financial requirements. In particular, fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year. However, this measure must be used with care because large
portions of the balance may relate to internally imposed limitations, such as constitutional or statutory language, which
could limit resource use (e.g., Budget Reserve, Dakota Cement Trust Fund, Health Care Trust Fund, Education
Enhancement Trust Fund, General Revenue Replacement Fund, and Permanent Fund), unless appropriated by
legislative action as defined by state law.
As shown in the table below, at the end of the current fiscal year, the State’s governmental funds reported combined
ending fund balances of $2.3 billion, an increase of $179.0 million during the fiscal year. Of this amount, approximately
25.8%, or $587.4 million of the combined ending fund balance is non-spendable; either due to its form or legal
constraints. The non-spendable portion is predominately made up of the Education Enhancement Trust, the Health
Care Trust, and the Permanent funds to be held as permanent investments. Approximately 48.4%, or $1.1 billion of the
combined ending fund balance is restricted by outside sources or enabling legislation. Another 2.3%, or $51.2 million
of the combined balance is committed by state law and 7.1%, or $162.0 million, has been assigned internally for specific
purposes. The remaining $373.0 million, or 16.4% is reported as unassigned in accordance with GASB Statement 54.
Certain resources within the $373.0 million of the unassigned fund balance have other internally imposed limitations as
discussed below. For additional explanation and breakdown of these balances, see Note 10. Fund Balance and Net
Position in the Notes to the Financial Statements.
State of South Dakota
Governmental Fund Balance as of June 30, 2020
(Expressed in Thousands)
% of
Social Dakota Education Total
General Services COVID-19 Cem ent Enhancem ent Fund
Fund Transportation Federal Federal Trust Trust Nonm ajor Total Balance
Nonspendable $ 5,300 $ 17,632 $ 1,232 $ 1,233 $ $ 410,924 $ 151,075 $ 587,396 25.8%
Restricted 3,382 217,161 1 333,809 197,273 350,620 1,102,246 48.4%
Committed 51,243 51,243 2.3%
Assigned 136,363 1,623 23,970 161,956 7.1%
Unassigned 381,326 (8,359) 372,967 16.4%
Total Fund Balances $ 526,371 $ 234,793 $ 2,855 $ 1,234 $ 333,809 $ 608,197 $ 568,549 $ 2,275,808
% Change from prior year 39.6% 3.9% 7.6% 0.5% 1.4% 1.7% 8.5%
The following governmental funds are major funds and had significant impact on the State’s financial position during
fiscal year 2020:
General Fund ($526.4 million). The General Fund is the chief operating fund of the State. It accounts for all financial
resources not accounted for and reported in another fund.
The General Fund receives a majority of its operating cash from sales and use tax and contractor’s excise tax revenue.
Other General Fund significant revenues include, but are not limited to, insurance company tax, cigarette excise tax,
unclaimed property remittance, bank taxes, tourism tax, alcohol beverage tax, and mineral tax. The General Fund also
receives annual statutory transfers from the South Dakota Lottery Fund, the Securities and Insurance Fund, the
Education Enhancement Trust Fund, the Dakota Cement Trust Fund, the South Dakota Gaming Commission Fund,
and the Health Care Trust Fund.
A vast majority of the General Fund expenditures are for education (K-12 and post-secondary); health, human, and
social services (taking care of people); and law, justice, public protection, and regulation (protecting people). The
General Fund also makes annual transfers out for debt service and to various other funds.
25
The exhibit below details the General Fund revenue, expenditures, and transfers in a comparative table.
State of South Dakota
Change in Revenue, Expenditures, and Transfers
General Fund
(Expressed in Thousands)
Revenues and Transfers In Expenditures and Transfers Out
General Fund % of General Fund % of
FY2020 FY2019 Change FY2020 FY2019 Change
Revenue: Expenditures:
Taxes: Current:
Sales and Use Tax $ 1,110,422 $ 1,044,574 6.3% General Government $ 59,980 $ 62,172 (3.5)%
Contractor's Excise Tax 126,920 112,682 12.6% Education (all) 824,380 803,868 2.6%
Insurance Company Tax 83,703 78,553 6.6% Health, Human, and Social Services 520,353 551,478 (5.6)%
Cigarette Excise Tax 40,885 40,501 1.0% Law , Justice, Public Protection, and Regulation 159,126 167,051 (4.7)%
Bank Tax 44,693 34,706 28.8% Agriculture and Natural Resources 18,026 17,122 5.3%
Tourism Tax 24,985 25,141 (0.6)% Economic Resources 23,466 29,170 (19.6)%
Alcohol Beverage Tax 19,231 19,919 (3.5)% State Shared Revenue Paid
Mineral Tax 8,640 4,777 80.9% to Other Governments 50,607 47,967 5.5%
Other 13,044 11,987 8.8% Total Expenditures $ 1,655,938 $ 1,678,828 (1.4)%
Licenses, Permits, and Fees 11,947 12,247 (2.5)%
Fines, Forfeits, and Penalties 303 551 (45.0)%
Use of Money and Property 42,616 29,458 44.7%
Sales and Services 21,049 22,183 (5.1)%
Administering Programs 1 8 (87.5)%
Unclaimed Property Remittance 31,301 53,285 (41.3)%
Other Revenue 14,861 14,742 0.8%
Total Revenue $ 1,594,601 $ 1,505,314 5.9%
Transfers In: Transfers Out:
South Dakota Lottery Fund $ 123,735 $ 123,016 0.6% Public Safety - Emergency Management Fund $ 9,918 $ 1,051 843.7%
Securities and Insurance Fund 56,435 56,798 (0.6)% Transportation Fund 4,076 54 7448.2%
Education Enhancement Trust Fund 22,516 21,335 5.5% Building Authority 3,195 3,345 (4.5)%
Dakota Cement Trust Fund 13,005 12,683 2.5% Vocational Education Facilities Fund 2,318 2,327 (0.4)%
South Dakota Gaming Commission Fund 5,420 5,660 (4.2)% Labor Fund 1,758 1,849 (4.9)%
Health Care Trust Fund 5,677 5,520 2.8% Education Enhancement Trust Fund 1,125
All Other Transfers In 9,364 9,454 (1.0)% All Other Transfers Out 3,316 13,346 (75.2)%
Total Transfers In $ 236,152 $ 234,466 0.7% Total Transfers Out $ 25,706 $ 21,972 17.0%
The General Fund experienced an increase in revenues of $89.3 million or 5.9% from the prior fiscal year. A majority of
this increase is attributed to a $80.1 million increase in sales, use, and contractors excise tax (6.9% increase). This
increase is due to a steady growing South Dakota economy and increasing construction activity. As previously indicated,
South Dakota, like the rest of the nation, experienced economic slowdown due to the pandemic. However, South Dakota
did not mandate any state-wide lockdowns or business closures, allowing the South Dakota economy to grow during
the year. Additionally, federal pandemic stimulus injected into the South Dakota economy encouraged spending.
The General Fund total expenditures decreased 1.4% from the prior fiscal year. This $22.9 million decrease was
attributed to $31.1 million decrease in Health, Human and Social Services and $7.9 million decrease in Law, Justice,
Public Protection, and Regulation functions of government because CARES Act funding covering some of the March to
June 2020 payroll expenditures in these areas. These decreases were offset by a 2.6% or $20.5 million increase in
continuing support to K-12 school districts and Higher Education.
At the end of the fiscal year, the total fund balance of the General Fund was $526.4 million, an increase of $149.2
million, or 39.6% from the prior fiscal year.
Significant changes in the General Fund balance include the following:
• Assigned ending fund balance of $136.4 million increased by $62.2 million, or 83.9% from the prior fiscal year.
A significant portion of this increase is attributed to fund balance assigned to Higher Education; and Health and
Public assistance. This increase is the result of increases in encumbrances and legislatively approve budget
carryovers.
• Unassigned ending fund balance of $381.3 million increased by $87.1 million, or 29.6% from the prior fiscal
year. Most of this increase is attributed to increases in the Budget Reserve and GRRF as previously discussed,
$26.0 million in sales tax receivable from a large business, and $12.8 million in unclaimed escheat property.
It is important to note that some of this unassigned fund balance has other restricting factors that may limit or
decrease its availability for general appropriations because it either has another purpose as intended by state
law or has internally imposed limitations. Those limitations on the unassigned fund balance include: $169.6
million in the Budget Reserve and $46.3 million in the General Revenue Replacement Fund, which by state law
is to be used only to address emergency situations without having to raise taxes or cut spending.
26
Additionally, $148.1 million of the unassigned fund balance is not part of cash and cash equivalents, but rather
a net effect of receivables and other assets in excess of liabilities. Of those receivables, $146.0 million was tax
revenue recognized as revenue in the General Fund in fiscal year 2020 for financial reporting purposes, but not
distributed on a cash basis to the General Fund until fiscal year 2021. This revenue was budgeted for and will
be used in fiscal year 2021 cash basis operations.
More detailed information on the General Fund’s fund balance can be found in Note 10. Fund Balance Classifications
– Governmental Funds in the Notes to the Financial Statements.
As a measure of the General Fund’s liquidity, it may be useful to compare both the assigned and unassigned fund
balances to total fund expenditures. The assigned fund balance represents 8.2% of the total General Fund operating
expenditures, while the unassigned fund balance (including the Budget Reserve and GRRF) represents 23.0% of that
same amount or 31.2% in total.
Transportation ($234.8 million). The Transportation Fund is a major special revenue fund that accounts for the
construction and maintenance of the State’s highways and bridges, and funds public transportation. Its revenue is
comprised of federal grants, state motor fuel taxes, and state motor vehicle excise taxes. All revenues of the
Transportation Fund are used and expended under the direction of the State’s Department of Transportation. The total
fund balance at the end of the current fiscal year for this fund was $234.8 million, an increase of $8.9 million, or 3.9%
from the prior fiscal year.
Total revenues for the Transportation Fund increased by $157.3 million or 24.4% from the prior fiscal year while total
expenditures increased by $173.3 million, or 27.7%. These increases are the result of an increase in federally supported
highway construction projects as compared to the prior fiscal year. This variation in construction activity is a normal
fluctuation in the four-year Statewide Transportation Improvement Plan.
Social Services Federal ($2.9 million). The Social Services Federal fund is a major special revenue fund that
consists of over sixty federal grants and entitlement programs administered to provide social, financial, and medical
services to eligible South Dakotans with the goal of fostering independence and personal responsibility. This fund is
administered by the State’s Department of Social Services. Some of the major grants included in this fund are Medicaid,
Low Income Heating and Energy Assistance Payments, Temporary Assistance to Needy Families, State Children’s
Health Insurance Program, State Administrative Matching Grants for the Supplemental Nutrition Assistance Program,
Child Care and Development Fund Mandatory, Child Care and Development Block Grant, Foster Care - Title IV-E, and
Child Support Enforcement.
Revenue in the fund consists of federal grants from the U.S. Department of Health and Human Services, the U.S.
Department of Agriculture, the U.S. Department of Energy, the U.S. Department of Justice, and federal pass-through
grants from various State entities. The majority of the funding is expended on entitlement programs, service contracts
to providers, and the administration of these programs. A majority of the state match to these federal grants is accounted
for and expended out of the General Fund. The total fund balance at the end of the current fiscal year for the Social
Services Federal Fund was $2.9 million, relatively unchanged from the prior fiscal year.
Total program revenue of $629.7 million decreased by $5.0 million, or 0.8% and expenditures of $629.3 million
decreased by $4.7 million, or 0.7% from the prior fiscal year. These decreases are predominantly attributed to a
decrease in the utilization of the Medicaid program due to COVID-19 pandemic.
COVID-19 Federal ($1.2 million). The COVID-19 Federal fund is a major special revenue fund created in fiscal year
2020 to account for all federal grants received for the COVID-19 pandemic. A majority of the activity in this fund is South
Dakota’s allocation of the Coronavirus Relief Fund (CRF) as created by the CARES Act. Other COVID-19 related activity
in this fund includes the 6.2% increased FMAP from the Families First Coronavirus Response Act and 29 other federal
funding sources for pandemic related programs.
In April of 2020, the State received two cash payments totaling $1.25 billion of CRF from the U.S. Department of
Treasury in accordance with the CARES Act. At the time of cash receipt, limited federal guidance was available and
CRF related expenditures to the fund were slow to materialize. As fiscal year 2020 closed, the U.S. Department of
Treasury began to issue federal guidance for CRF. Taking a fiscally conservative approach, the State began to account
for allowable CRF expenditures in the COVID-19 Federal fund that were originally paid for with cash from the General
Fund, some internal service funds, and various other funds. These timing issues created $24.5 million of interfund
receivables and payables in the COVID-19 Federal fund. See Note 5. Interfund Transactions in the Notes to the
Financial Statements for more information relating to interfund receivables and payables.
As of June 30, 2020, the COVID-19 Federal fund reported total expenditures of $116.3 million. Of that, $57.4 million, or
49.4% were for the CRF grant, mostly personal services and contractual services expenditures of the State. Additionally,
27
$23.6 million of the CRF expenditures are reported with a corresponding due to other funds. Because the CRF grant
was an upfront cash payment of $1.25 billion, this fund reported unearned revenue of $1.1 billion. A majority of the CRF
expenditures (grants to cities, counties, schools, universities, small businesses, etc.) in this fund did not materialize until
after the close of fiscal year 2020.
An additional $28.4 million of expenditures, or 24.4% of the COVID-19 Federal fund total expenditures are for the 6.2%
increased FMAP from the Families First Coronavirus Response Act. The remaining $30.4 million, or 26.2% of total
expenditures in this fund are for 29 additional funding sources relating to federal funding for pandemic programs.
At the close of the fiscal year, the COVID-19 Federal fund had a fund balance of $1.2 million.
Dakota Cement Trust Fund ($333.8 million). As created in Article XIII, Sections 20 and 21 of the Constitution of
the State of South Dakota, this fund consists of the proceeds from the sale of the State Cement Plant and all investment
earnings. “Four percent of the lesser of the average market value of the trust fund determined by adding the market
value of the trust fund at the end of the sixteen most recent calendar quarters as of December thirty-first of that year
and dividing that sum by sixteen, or the market value of the trust fund at the end of that calendar year” shall be
transferred to the General Fund in support of education. The Dakota Cement Trust Fund transferred $13.0 million to
the General Fund in fiscal year 2020 and $12.7 million in fiscal year 2019.
The fund balance in the Dakota Cement Trust Fund at June 30, 2020, was $333.8 million and is restricted for education.
This is an increase of $1.7 million from the previous fiscal year. The increase resulted primarily from strong net
investment income of $15.8 million which exceeded the statutory required transfer to the General Fund of $13.0 million.
Education Enhancement Trust Fund ($608.2 million). This fund consists of monies received from the Tobacco
Settlement Agreement, monies transferred from the Tobacco Securitization Fund, and General Fund appropriations for
scholarship purposes. The fund is authorized by state law to make an annual distribution equal to 4.0% of its market
value (less the investment expenses) into the General Fund for educational enhancement programs. Article XII, Section
6 of the Constitution of the State of South Dakota also states that, “the Education Enhancement Trust Fund may not be
diverted for other purposes, nor may the principal be invaded unless appropriated by a three-fourths vote of all the
members-elect of each house of the legislature.” The Education Enhancement Trust Fund transferred $22.5 million to
the General Fund in fiscal year 2020 and $21.3 million in fiscal year 2019.
The fund balance in the Education Enhancement Trust Fund at June 30, 2020 was $608.2 million, an increase of $8.3
million from the prior fiscal year. The increase resulted from strong net investment income of $24.4 million and a $8.4
million transfer in from the Tobacco Securitization Fund, which exceeded the statutory required transfer out to the
General Fund of $22.5 million.
Proprietary Funds
The State’s proprietary funds are presented on the accrual basis of accounting and include the State’s enterprise and
internal service funds. The following proprietary funds had significant activity or changes to net position during fiscal
year 2020:
Lottery Fund ($5.1 million). The Lottery Fund accounts for the operations of the South Dakota State Lottery, which
markets instant tickets and lotto games and regulates video lottery to raise revenue for state programs and projects. At
the end of the current fiscal year, the Lottery Fund reported total net position of $5.1 million, a decrease of $1.0 million
in comparison with the prior fiscal year. Pursuant to state law, the State Lottery Fund distributed approximately $123.7
million to the General Fund, $4.5 million to the State Capital Construction Fund, and $0.2 million to the Department of
Social Services. For financial reporting purposes the $4.5 million transfer to the State Capital Construction Fund is
reported as a $2.8 million transfer to the Water and Environment Fund, a $1.0 million transfer to the Transportation
Fund, and $0.7 million transfer to the Ethanol Fuel Fund.
The State Lottery produced income (before transfers) in the amount of $127.4 million on total revenue of $177.0 million,
compared to the previous fiscal year’s income (before transfers) of $129.5 million on total revenue of $179.6 million.
The State Lottery realized an increase in state share of video lottery net machine income of $2.3 million in fiscal year
2020. The growth is attributed to the continued introduction of line game terminals in video lottery establishments. The
Lottery also experienced an increase in instant ticket sales of $4.8 million resulting from continued research of instant
ticket games that appeal to players. These increases were offset by a $9.7 million decrease in on-line ticket sales
because the absence of a major jackpot run.
Clean Water State Revolving Fund ($260.1 million). The Clean Water State Revolving Fund program was
federally authorized by the 1987 Clean Water Act amendments. The United States Environmental Protection Agency
awards capitalization grants to the State. These grants along with 5:1 matching state funds provide low interest loans
28
to governmental entities for wastewater, storm sewer, and nonpoint source pollution projects. Projects with compliance
or health and safety concerns receive highest priority.
At the end of the current fiscal year, the Clean Water State Revolving Fund reported total net position of $260.1 million,
an increase of $11.7 million, or 4.7% in comparison to the prior fiscal year. This increase resulted primarily from the
298.2% or $8.7 million increase federal capitalization grants issued to the fund by the United States Environmental
Protection Agency for providing low interest loans.
Drinking Water State Revolving Fund ($210.2 million). The Drinking Water State Revolving Fund program was
federally authorized by the Safe Drinking Water Act amendments of 1996. The United States Environmental Protection
Agency awards capitalization grants to the State. These grants along with 5:1 matching state funds are used to provide
low interest loans to finance drinking water projects. Projects with compliance or health and safety concerns receive
highest priority.
At the end of the current fiscal year, the Drinking Water Revolving Fund reported total net position of $210.2 million, an
increase of $10.8 million, or 5.4% in comparison with the prior fiscal year. This increase resulted primarily from a 416.5%
or $9.1 million increase federal capitalization grants issued to the fund by the United States Environmental Protection
Agency for providing low interest loans.
Unemployment Insurance Fund ($147.1 million). The Unemployment Insurance Fund accounts for the
reemployment assistance tax receipts from employers within the State of South Dakota and federal unemployment
programs and benefits paid to unemployed persons. The Reemployment Assistance division provides temporary
financial assistance for people who have lost their job through no fault of their own, until they find other employment.
South Dakota’s program is financed by employers through payroll taxes. During the fiscal year, the Unemployment
Insurance Fund experienced significant increases in both revenues and expenses due to substantial increases in
unemployment claims related to the COVID-19 pandemic. These increases resulted in the Unemployment Insurance
Fund becoming a “major” proprietary fund in fiscal year 2020.
Unemployment benefit payments to individuals increased from $26.4 million in the prior fiscal year to $241.3 million,
an 814.1% increase. Additionally, the receipts from employers and the Federal Government increased from $39.4
million in fiscal year 2019 to $247.6 million in the current fiscal year, a 527.8% increase. Most of this revenue increase
came from federal programs passed in the CARES Act. This activity resulted in total net position of $147.1 million, an
increase of $9.3 million, or 6.8% from the prior fiscal year.
Budgetary Highlights - General Fund
The following analysis is based on the Budgetary Comparison Schedules included in the Required Supplementary
Information that immediately follows the Basic Financial Statements.
The original budget is defined as the first complete appropriated budget, adjusted by reserves, transfers, allocations,
supplemental appropriations, and other legally authorized legislative and executive changes before the beginning of the
fiscal year. Any such transaction that is authorized as a legislative or executive change before the beginning of the fiscal
year is included in the original budget, regardless of the effective date of the document loaded on the accounting system.
The original budget also includes employee compensation allocations and any actual appropriation amounts carried
forward by law from prior fiscal years; including special appropriations, maintenance and repair, and carryovers. The
final budget is defined as the original budget, adjusted by all reserves, transfers, allocations, supplemental
appropriations, and other legally authorized legislative and executive changes after the beginning of the fiscal year.
General Fund The difference between the original and the final budget was a $23.9 million net increase in
appropriations comprised of two separate appropriation types: emergency special appropriations and net general bill
adjustment appropriations (both increases and decreases). The net increase was due to (1) actual sales and use tax,
contractors excise tax, and lottery revenues exceeding previous estimates, (2) gains from the refinancing of bonds being
transferred to the General Fund, and (3) legislatively approved transfer from the Budget Reserve to the General Fund.
Increases to the General Fund Budget
Emergency Specials. During the 2020 Legislative Session, the Legislature approved emergency special appropriations
to the General Fund of $30.4 million in fiscal year 2020. They consisted of the following:
• $9.9 million was appropriated from the General Fund to the Department of Public Safety for the special
emergency and disaster special revenue fund, for costs related to disasters in South Dakota.
• $7.0 million was appropriated from the General Fund to Higher Education to contract for the construction of an
Allied Health Facility and the demolition of Julian Hall and the Julian Hall Addition, rural veterinary medical
29
education program, the design and development of a new bioprocessing facility, and the development of the
Cyber Incubator and Entrepreneurial Center.
• $5.1 million was appropriated from the General Fund to the Bureau of Information and Telecommunications for
upgrading the state radio infrastructure system.
• $5.0 million was appropriated from the General Fund to the Governor’s Office of Economic Development for
expanding rural access to broadband services throughout South Dakota.
• $1.6 million was appropriated from the General Fund to the Department of Health for the rural healthcare
recruitment program and hemp testing.
• $1.2 million was appropriated from the General Fund to the Bureau of Administration for the payment of legal
expenses associated with litigation against the State. Due to the unpredictable nature of these items, the State
does not budget estimated expenditures for defending the State against litigation. Instead the Legislature allows
for payment of actual expenditures as costs are incurred and backfills the budget for the actual expenditure
after the costs have been paid.
• $0.6 million was appropriated from the General Fund to the Department of Revenue for tax refunds for the
elderly and disabled and to the Department of the Military to construct a cold storage building.
General Bill Increases. The 2020 Legislature approved general bill adjustments that increased the General Fund
original budget by $17.0 million during fiscal year 2020. This increase consisted of the following:
• $12.8 million increase in appropriations related to employee compensation and billing pools.
• $2.8 million increase in appropriations to Higher Education for programs in Board of Regents Central Office,
SD School of Mines and Technology, and Dakota State University.
• $1.4 million total increases in appropriations to various state agencies for other increases.
Decreases to the General Fund Budget
General Bill Decreases. The 2020 Legislature approved general bill adjustments that decreased the General Fund
original budget by $23.5 million during fiscal year 2020. These decreases consisted of the following:
• $17.3 million decrease in appropriations to the Department of Social Services for programs in administration,
economic assistance, medical services, and behavioral health.
• $2.9 million decrease in appropriations to the Department of Education for programs in state aid to general
education, sparsity payments, national board-certified teachers and counselors, and education resources.
• $2.4 million decrease in appropriations to the Department of Human Services for programs in South Dakota
Developmental Center and long-term services and supports.
• $0.9 million decrease in appropriations to the Department of Corrections for programs in inmate services.
The net effect of the emergency special appropriations and general bill adjustments resulted in a $23.9 million increase
in appropriations. Overall, there were no over-expenditures by any State departments in the General Fund. The
difference between the final amended budget and actual spending was $86.1 million below final budgeted estimates.
CAPITAL ASSETS
Investment in capital assets as of June 30, 2020 is $4.5 billion (net of accumulated depreciation). This includes: land,
land improvements, buildings, equipment, intangible assets, vehicles, infrastructure, and construction in progress.
State of South Dakota
Capital Assets - Primary Government
(Expressed in Thousands)
Governm ental Business-type Total Prim ary
Activities Activities Governm ent
FY2020 FY2019 FY2020 FY2019 FY2020 FY2019
Land $ 123,053 $ 122,832 $ 295 $ 295 $ 123,348 $ 123,127
Land Improvements 68,774 67,627 1,096 924 69,870 68,551
Land Improvements - Roads 637,242 636,272 637,242 636,272
Buildings 750,938 687,905 8,591 8,591 759,529 696,496
Equipment 258,441 251,679 4,190 3,993 262,631 255,672
Intangible Assets – Softw are 132,167 127,406 2,620 2,620 134,787 130,026
Vehicles 182,651 178,801 182,651 178,801
Infrastructure 4,386,511 4,239,596 4,386,511 4,239,596
Construction in Progress 345,063 331,002 267 235 345,330 331,237
Total Capital Assets 6,884,840 6,643,120 17,059 16,658 6,901,899 6,659,778
Accumulated Depreciation (2,417,074) (2,318,430) (10,504) (10,007) (2,427,578) (2,328,437)
Total Capital Assets, Net $ 4,467,766 $ 4,324,690 $ 6,555 $ 6,651 $ 4,474,321 $ 4,331,341
30
The most significant capital asset the State reported in fiscal year 2020 is infrastructure. Infrastructure assets are long-
lived capital assets that are normally stationary in nature and can be preserved for a significantly greater number of
years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems,
water and sewer systems, dams, and lighting systems. Infrastructure assets account for $2.6 billion (net of accumulated
depreciation), which is 58.4% of total net capital assets.
The State’s investment in capital assets (net of accumulated depreciation) increased $146.3 million or 3.4% during the
fiscal year. This change was primarily due to an increase in infrastructure from continued highway construction projects
funded by federal grants and state motor fuel taxes in the Transportation Fund.
More detailed information on the State’s capital assets can be found in Note 6. Capital Assets in the Notes to the
Financial Statements.
Debt Administration
Issuer Credit Rating of the State. On May 4, 2015, Standard & Poor’s upgraded the issuer credit rating (ICR) for the
State to AAA with a stable outlook. Likewise, on June 17, 2016, and July 11, 2016, Fitch Rating Service and Moody’s
Investors Service also upgraded the ICR for the State to AAA and Aaa both with a stable outlook. As of June 30, 2020,
all three rating agencies have reaffirmed South Dakota’s AAA (Aaa) ratings with a stable outlook.
The authority of the State to incur limited debt for specific purposes is described in Article XlII, Section 2, of the State’s
Constitution. This section prohibits the State from having general obligation indebtedness in excess of $100,000.
South Dakota Building Authority. The South Dakota Building Authority (SDBA) was created and organized by Chapter
5-12 of the South Dakota Codified Laws to issue debt on behalf of the primary government. Although legally separate
from the State, SDBA is a blended component unit of the State, and accordingly, is included in the State’s financial
statements.
SDBA issues bonds, certificates of participation, and trust certificates to finance the cost to acquire, construct, remodel,
maintain, and equip buildings and other facilities of state departments and institutions. These obligations are payable
from revenue generated through lease agreements between SDBA and the state departments and institutions. The
indebtedness, bonds, or obligations incurred or created by SDBA may not be or become a lien, charge, or liability
against the State. The bonds and all related financial transactions used to finance buildings of state departments and
institutions are reported as part of the Governmental Activities in the State’s Basic Financial Statements, except for the
debt of the universities, which is reported as part of the discretely presented component unit information.
On June 30, 2020, the uninsured rating for SDBA from both Standard & Poor’s and Fitch Rating was AA+ with a stable
outlook and Moody’s Investor Service was Aa1 with a stable outlook, all rating obligation lower than the State’s ICR.
SDBA issued $7.1 million of revenue bonds for the primary government in fiscal year 2020. Proceeds from these bonds
were used to refund and defease previously issued bonds. SDBA also issued $65.8 million of revenue bonds for Higher
Education. The proceeds of these bonds were also used to refund and defease previously issued bonds. The completed
refunding produced $5.1 million cash savings to the General Fund.
Educational Enhancement Funding Corporation. The Educational Enhancement Funding Corporation (EEFC) is a
special purpose corporation organized by Chapter 5-12 of the South Dakota Codified Laws. EEFC is an instrumentality
of, but separate and apart from the State. Although legally separate from the State, EEFC is a blended component unit
of the State and is included in the State’s financial statements.
Pursuant to a Purchase and Sale Agreement with the State, the State sold to EEFC its future rights, title, and interest
in the Tobacco Settlement Revenues (TSRs) under the Master Settlement Agreement. The purchase price of the State’s
future right, title, and interest in the TSRs has been financed by the issuance of bonds and the Residual Certificate. The
Residual Certificate represents the right of the State to receive all amounts required to be distributed after payment of
all outstanding bonds and other liabilities of EEFC as set forth in the Trust Indenture. Pursuant to the Resolution, EEFC
is prohibited from selling additional bonds, other than refunding bonds. The bonds represent limited obligations of EEFC,
payable solely from and secured solely by the pledged TSRs and the pledged amounts. The bonds are not a debt or
liability of the State or of any political subdivision or agency thereof. EEFC has no taxing power. The bonds and all
related financial transactions of EEFC are reported as part of the Governmental Activities in the State’s Basic Financial
Statements.
EEFC did not issue any bonds in fiscal year 2020.
31
South Dakota Conservancy District. The South Dakota Conservancy District (SDCD) was created by the Legislature
under Chapter 46A-2 of the South Dakota Codified Law as a body politic and corporate for the purpose of constructing
water resource facilities for the conservation, storage, distribution, and utilization of water for multiple purposes within
the State. Although legally separate from the State, SDCD is a blended component unit of the State and is included in
the State’s financial statements.
SDCD issues revenue bonds for the Clean Water State Revolving Fund (CWSRF) and for the Drinking Water State
Revolving Fund (DWSRF). These funds provide low interest loans or other types of financial assistance for the
construction of publicly owned wastewater treatment facilities; implementation of nonpoint source management
programs; and construction and maintenance of drinking water facilities respectively. The bonds are paid solely from
CWSRF and DWSRF loan repayments. The SDCD bonds do not constitute a debt or liability of the State or a pledge of
the faith and credit of the State. The revenue bonds and related financial transactions for the CWSRF and DWSRF are
reported as part of the Business-type Activities in the State’s Basic Financial Statements.
At June 30, 2020, the SDCD had maintained its long-term rating of AAA with a positive outlook by Standard & Poor’s
and Aaa by Moody’s Investor Service.
In fiscal year 2020, SDCD did not issue any new bonds for CWSRF or DWSRF programs.
Total Outstanding Notes and Bond Debt. The primary government had total notes and bonded debt outstanding as
follows:
State of South Dakota
Outstanding Notes and Bonded Debt
(Expressed in Thousands)
Governm ental Business-type Total Prim ary
Activities Activities Governm ent
FY2020 FY2019 FY2020 FY2019 FY2020 FY2019
Revenue Bonds:
South Dakota Building Authority $ 76,215 $ 79,055 $ $ $ 76,215 $ 79,055
Educational Enhancement Funding Corporation 70,549 81,784 70,549 81,784
South Dakota Conservancy District 351,302 375,803 351,302 375,803
Capital Leases: 133,352 136,417 133,352 136,417
Total $ 280,116 $ 297,256 $ 351,302 $ 375,803 $ 631,418 $ 673,059
Additional information on the State’s long-term debt obligations can be found in Note 14. Long-Term Liabilities in the
Notes to the Financial Statements.
ECONOMIC CONDITIONS AND OUTLOOK
Despite the pandemic, nonfarm employment in South Dakota was among the best in the nation during fiscal year 2020.
Nonfarm employment decreased by 5.3% from the prior year compared to a decrease of 8.6% nationally. Similarly, the
unemployment rate in South Dakota remained among the lowest in the nation in fiscal year 2020. South Dakota’s
unemployment rate was 7.2% in June 2020, while the U.S. unemployment rate was 11.1% the same month. In the
second quarter of 2020, South Dakota’s nonfarm personal income grew 9.8%, lower than the U.S. growth rate of 10.4%.
Further information on the South Dakota economy and economic outlook is included in the transmittal letter.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general
overview of the State’s finances and to demonstrate the State’s accountability for the money it receives. If you have any
questions about this report, or need additional financial information, please contact the Bureau of Finance and
Management, 500 East Capitol Avenue, Pierre, South Dakota 57501, (605) 773-3411 or visit our website at
http://bfm.sd.gov.
The State’s discretely presented component units, with the exception of Higher Education and the South Dakota Value
Added Finance Authority, issue their own separately audited financial statements. These statements may be obtained
by directly contacting the Department of Legislative Audit at 427 South Chapelle, c/o 500 East Capitol, Pierre, South
Dakota 57501, (605) 773-3595 or visit their website at http://legislativeaudit.sd.gov.
32
BASIC FINANCIAL STATEMENTS
The Basic Financial Statements include the government-wide
financial statements, the governmental funds financial statements,
the proprietary funds financial statements, the fiduciary funds
financial statements, and the accompanying Notes to the Financial
Statements. The following individual statements are included:
▪ Government-wide Financial Statements – Statement of Net Position
▪ Government-wide Financial Statements – Statement of Activities
▪ Balance Sheet – Governmental Funds
▪ Reconciliation of the Governmental Funds Balance Sheet to the Statement of
Net Position
▪ Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds
▪ Reconciliation of the Change in Fund Balances of Governmental Funds to the
Statement of Activities
▪ Statement of Net Position – Proprietary Funds
▪ Statement of Revenues, Expenses, and Changes in Net Position – Proprietary
Funds
▪ Statement of Cash Flows – Proprietary Funds
▪ Statement of Fiduciary Net Position – Fiduciary Funds
▪ Statement of Changes in Fiduciary Net Position – Fiduciary Funds
▪ Notes to the Financial Statements
33
STATE OF SOUTH DAKOTA
STATEMENT OF NET POSITION
June 30, 2020
(Expressed in Thousands)
Primary Government
Governmental Business-type
Activities Activities Total
Assets
Cash and Cash Equivalents $ 2,190,950 $ 426,919 $ 2,617,869
Receivables, net 619,176 566,805 1,185,981
Due From Component Units 1,048 52 1,100
Due From Primary Government 0
Internal Balances 6,617 (6,617) 0
Investments 1,183,600 167,865 1,351,465
Securities Held as Escheat Property 469 469
Inventory 24,696 2,303 26,999
Advances to Component Units 1,193 18,063 19,256
Other Assets 12,469 156 12,625
Assets Held for Resale 321 321
Restricted Assets:
Cash and Cash Equivalents 3,384 26 3,410
Investments 19,373 372 19,745
Net Pension Asset 2,146 50 2,196
Other 675 675
Capital Assets:
Land and Other Non-depreciable Assets 770,913 295 771,208
Infrastructure, net 2,614,837 2,614,837
Property, Plant, and Equipment, net 736,953 5,993 742,946
Construction in Progress 345,063 267 345,330
Total Assets 8,532,887 1,183,545 9,716,432
Deferred Outflows of Resources
Deferred Outflow Related to Pensions 113,026 2,703 115,729
Deferred Swap Outflow 0
Deferred Forward Contract Outflow 0
Deferred Outflow on Debt Refunding 3,934 7,307 11,241
Total Deferred Outflows of Resources 116,960 10,010 126,970
Liabilities
Accounts Payable and Other Liabilities 391,517 26,221 417,738
Due To Primary Government 0
Due To Component Units 1,144 1,144
Accrued Interest Payable 566 5,928 6,494
Unearned Revenue 1,209,641 2,242 1,211,883
Noncurrent Liabilities:
Due Within One Year 87,964 24,374 112,338
Due In More Than One Year 341,753 330,015 671,768
Total Liabilities 2,032,585 388,780 2,421,365
Deferred Inflows of Resources
Deferred Inflow Related to Pensions 43,715 1,041 44,756
Deferred Forward Contract Inflow 0
Deferred Inflow on Gain on Debt Refunding 0
Deferred Inflow on Swaps 0
Total Deferred Inflows of Resources 43,715 1,041 44,756
Net Position
Net Investment in Capital Assets 4,259,851 6,552 4,266,403
Restricted for:
Education 350,208 350,208
Highways 222,811 222,811
Railroads 24,387 24,387
Law, Justice, Public Protection, and Regulation 20,162 20,162
Agriculture and Natural Resources 86,913 86,913
Game and Fish 6,045 6,045
Parks and Recreation 3,475 3,475
Health and Public Assistance 22,356 22,356
Economic Development 55,642 55,642
Debt Service 23,531 23,531
Capital Projects 324 324
HOME and NSP Program 0
Energy Conservation Programs 12,566 12,566
Higher Education - Expendable 0
Higher Education - Nonexpendable 0
Funds Held as Permanent Investments:
Expendable 256,117 256,117
Nonexpendable 558,300 558,300
Pensions 71,457 1,712 73,169
Disaster Relief Fund 10,500 10,500
Maintenance Support Facility 0
Experiments 0
Mine Closure 0
Sanford Center for Science Education 0
Other Purposes 12,444 2,546 14,990
Unrestricted 586,958 782,424 1,369,382
Net Position $ 6,573,547 $ 803,734 $ 7,377,281
The notes to the financial statements are an integral part of this statement.
34
Component Units
Science and
Housing Technology Higher
Authority Authority Education Nonmajor
$ 254,250 $ 20,424 $ 280,869 $ 19,039
431,325 2,647 124,442 9,510
1,144
1,246,414 455,518 1,887
3,530 2,451 6,841
416 9,577 18,991 120
3,855
31,238 2,602
160,735 3,240
16 52 1,546
30,027
220 19,821 46,086
4,859 59,061 1,217,718 19,101
1,824 103,824
1,941,030 115,857 2,478,979 59,354
901 2,943 80,241
9,401
949
2,879 11,846
14,130 2,943 92,087 0
4,710 1,988 46,238 960
92 1,008
6,294 3,747 112
26,200 3,260
51,919 758 67,439 2,184
1,278,552 6,758 586,372 28,438
1,341,567 9,504 731,004 34,954
345 1,267 31,494
86
2,758 216
331
3,520 1,267 31,710 0
(951) 80,706 872,148 522
516,496 3,416 5,000
79,510
258,324
485,391
572 1,728 50,293
4,676
729
1,521
83
14,446 7,500
11,086 138,780 18,878
$ 610,073 $ 108,029 $ 1,808,352 $ 24,400
35
STATE OF SOUTH DAKOTA
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Primary Gov
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary Government:
Governmental Activities:
General Government $ 209,723 $ 272,984 $ 15,379 $
Education - Elementary, Secondary, and
Vocational Schools 223,524 8,750 181,574
Education - State Support to Higher Education 229,545
Health, Human, and Social Services 1,544,824 34,115 977,457 2,211
Law, Justice, Public Protection, and Regulation 313,534 89,945 84,540
Agriculture and Natural Resources 157,010 84,795 45,941 8,979
Economic Resources 45,920 178 12,888
Transportation 676,547 16,519 482,627 5,571
Pandemic Response 116,299 118,137
Intergovernmental - Payments to School Districts 563,878
Intergovernmental - Revenue Sharing 196,425
Unallocated Interest Expense 6,861
Unallocated Depreciation 53
Total Governmental Activities 4,284,143 507,286 1,918,543 16,761
Business-type Activities:
Lottery 50,484 177,306 583
Clean Water State Revolving 13,516 7,401 17,838
Drinking Water State Revolving 9,349 5,033 15,220
Unemployment Insurance 241,343 30,105 221,315
Revolving Economic Development and Initiative 1,877 911 5,064
Second Injury 963 1 147
State Fair 3,892 3,176 50 19
Federal Surplus Property 2,302 1,973 4
Rural Rehabilitation (152) 101 266
Prison Industries 3,490 3,781 30
S.D. Trust Company Captive Insurance Co. 30 (64) 108
Professional and Licensing 9,231 8,553 629
Banking and Insurance 5,565 5,963 376
Other 3,498 4,884 44
Total Business-type Activities 345,388 249,124 261,674 19
Total Primary Government $ 4,629,531 $ 756,410 $ 2,180,217 $ 16,780
Component Units:
Housing Authority $ 83,978 $ 116,228 $ 30,896 $
Science and Technology Authority 33,393 405 29,814 2,926
Higher Education 846,233 433,767 164,344 6,967
Nonmajor 6,026 4,302 303
Total Component Units $ 969,630 $ 554,702 $ 225,357 $ 9,893
General Revenues:
Taxes:
Sales Taxes
Motor Fuel Taxes
Contractors Excise Taxes
Bank Card and Franchise Taxes
Other Taxes
Investment Earnings
State Support to Higher Education
Gain on Sale of Capital Assets
Miscellaneous
Additions to Endowments
Special Items - Impairment of Capital Asset
Transfers
Total General Revenues, Additions to Endowments,
Special Items, and Transfers
Changes in Net Position
Net Position at Beginning of Year, as restated
Net Position at End of Year
The notes to the financial statements are an integral part of this statement.
36
Net (Expenses) Revenue and Changes in Net Position
Primary Government Component Units
Science and
Governmental Business-type Housing Technology Higher
Activities Activities Total Authority Authority Education Nonmajor
$ 78,640 $ $ 78,640
(33,200) (33,200)
(229,545) (229,545)
(531,041) (531,041)
(139,049) (139,049)
(17,295) (17,295)
(32,854) (32,854)
(171,830) (171,830)
1,838 1,838
(563,878) (563,878)
(196,425) (196,425)
(6,861) (6,861)
(53) (53)
(1,841,553) 0 (1,841,553)
127,405 127,405
11,723 11,723
10,904 10,904
10,077 10,077
4,098 4,098
(815) (815)
(647) (647)
(325) (325)
519 519
321 321
14 14
(49) (49)
774 774
1,430 1,430
0 165,429 165,429
(1,841,553) 165,429 (1,676,124)
$ 63,146 $ $ $
(248)
(241,155)
(1,421)
63,146 (248) (241,155) (1,421)
1,149,732 1,149,732
184,949 184,949
132,043 132,043
44,727 44,727
385,180 385,180
91,816 91,816 760 62,221 832
0 229,545
1,515 1,515 745
61,664 61,664
0 26,141
(3,636) (3,636)
121,805 (121,805) 0
2,169,795 (121,805) 2,047,990 0 760 317,907 1,577
328,242 43,624 371,866 63,146 512 76,752 156
6,245,305 760,110 7,005,415 546,927 107,517 1,731,600 24,244
$ 6,573,547 $ 803,734 $ 7,377,281 $ 610,073 $ 108,029 $ 1,808,352 $ 24,400
37
STATE OF SOUTH DAKOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2020
(Expressed in Thousands)
Social Dakota Education
General Transport- Services COVID-19 Cement Enhancement
Fund ation Federal Federal Trust Trust Nonmajor Total
Assets
Cash and Cash Equivalents $ 439,009 $ 181,479 $ 667 $ 1,176,278 $ 188 $ 410 $ 308,370 $ 2,106,401
Restricted Cash 3,382 2 3,384
Investments 333,161 628,795 221,644 1,183,600
Restricted Investments 19,373 19,373
Securities Held as Escheat Property 469 469
Receivables from:
Taxes, net 226,995 17,100 2,986 247,081
Interest and Dividends 4,686 681 3 475 1,195 1,650 8,690
Other Funds 80,750 1,707 3,474 7,315 93,246
Component Units 53 13 402 468
Other Governments 1,814 91,341 14,242 19,906 111,740 239,043
Loans and Notes, net 5,680 59,211 64,891
Other, net 13,836 1,636 16,641 1,658 362 18,013 52,146
Inventory 2,735 17,391 15 1,170 2,372 23,683
Advances to Component Units 1,193 1,193
Other Assets 2,565 241 1,217 62 3,880 7,965
Total Assets $ 776,294 $ 317,269 $ 32,785 $ 1,202,548 $ 333,824 $ 630,762 $ 758,151 $ 4,051,633
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities:
Accounts Payable and Other Liabilities $ 134,302 $ 66,382 $ 28,510 $ 18,451 $ 15 $ 50 $ 50,222 $ 297,932
Payable to:
Other Funds 4,376 1,679 1,078 24,544 22,515 40,743 94,935
Component Units 23 69 117 205 665 1,079
Other Governments 17,012 12,124 46 9,750 66,917 105,849
Claims, Judgments, and Compensated Absences 197 50 15 1 133 396
Unearned Revenue 29,396 2,172 164 1,148,363 16,508 1,196,603
Total Liabilities 185,306 82,476 29,930 1,201,314 15 22,565 175,188 1,696,794
Deferred Inflows of Resources:
Unavailable Revenue 64,617 14,414 79,031
Total Deferred Inflows of Resources 64,617 0 0 0 0 0 14,414 79,031
Fund Balances:
Nonspendable 5,300 17,632 1,232 1,233 410,924 151,075 587,396
Restricted 3,382 217,161 1 333,809 197,273 350,620 1,102,246
Committed 51,243 51,243
Assigned 136,363 1,623 23,970 161,956
Unassigned 381,326 (8,359) 372,967
Total Fund Balances 526,371 234,793 2,855 1,234 333,809 608,197 568,549 2,275,808
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 776,294 $ 317,269 $ 32,785 $ 1,202,548 $ 333,824 $ 630,762 $ 758,151 $ 4,051,633
The notes to the financial statements are an integral part of this statement.
38
STATE OF SOUTH DAKOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
June 30, 2020
(Expressed in Thousands)
Total Fund Balances - Governmental Funds $ 2,275,808
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial resources and are
therefore not reported in the funds. These assets consist of:
Land and Construction in Progress $ 1,114,919
Infrastructure 4,386,509
Other Capital Assets 1,270,658
Accumulated Depreciation (2,337,970)
Total Capital Assets 4,434,116
Net pension asset used in governmental activities is not a financial resource
and is therefore not reported in the governmental funds. 1,992
Deferred outflows of resources are not reported in the governmental funds:
Related to Pension 104,911
Related to Debt Refunding 3,934
Total Deferred Outflows of Resources 108,845
Internal service funds are used by management to charge costs of certain activities to
individual funds. The assets and liabilities of the internal service funds are included in
governmental activities in the Statement of Net Position. 48,563
Some liabilities are not due and payable in the current period and therefore are not
reported in the funds. Those liabilities are:
Bonds and Notes (146,763)
Accrued Interest on Bonds (566)
Capital Leases (115,675)
Compensated Absences (58,587)
Pollution Remediation (12,646)
Total Long-Term Liabilities (334,237)
Deferred inflows of resources are not reported in the governmental funds:
Revenues not available soon enough after year-end to pay for the
current period's expenditures 79,031
Related to Pensions (40,571)
Total Deferred Inflows of Resources 38,460
Net Position of Governmental Activities $ 6,573,547
The notes to the financial statements are an integral part of this statement.
39
STATE OF SOUTH DAKOTA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Social Dakota Education
General Transport- Services COVID-19 Cement Enhancement
Fund ation Federal Federal Trust Trust Nonmajor Total
Revenue:
Taxes $ 1,472,523 $ 298,286 $ $ $ $ $ 99,970 $ 1,870,779
Licenses, Permits, and Fees 11,947 13,536 287,231 312,714
Fines, Forfeits, and Penalties 303 18,394 18,697
Use of Money and Property 42,616 6,267 38 15,777 24,421 27,575 116,694
Sales and Services 21,049 645 19,870 41,564
Administering Programs 1 481,878 624,689 118,139 664,530 1,889,237
Tobacco Settlement 20,865 20,865
Other Revenue 46,162 1,074 4,967 26,437 78,640
Total Revenue 1,594,601 801,686 629,694 118,139 15,777 24,421 1,164,872 4,349,190
Expenditures:
Current:
General Government 59,980 1,105 2,043 41,247 104,375
Education 30,957 190,733 221,690
Education - Payments to School Districts 563,878 563,878
Education - State Support to Higher Education 229,545 229,545
Health, Human, and Social Services 520,353 629,345 373,860 1,523,558
Law, Justice, Public Protection, and Regulation 159,126 16,967 128,743 304,836
Agriculture and Natural Resources 18,026 146,850 164,876
Economic Resources 23,466 21,792 45,258
Transportation 782,315 6,265 788,580
Pandemic Response 116,299 116,299
State Shared Revenue Paid to
Other Governments 50,607 145,818 196,425
Capital Outlay 13,912 13,912
Debt Service:
Principal 14,280 14,280
Interest 6,510 6,510
Bond Issuance Costs 65 65
Total Expenditures 1,655,938 799,282 629,345 116,299 1,105 2,043 1,090,075 4,294,087
Excess of Revenues Over
(Under) Expenditures (61,337) 2,404 349 1,840 14,672 22,378 74,797 55,103
Other Financing Sources (Uses):
Proceeds from Sale of Capital Assets 78 2,535 282 2,895
Insurance Proceeds 15 15
Proceeds of Refunding Bonds 7,130 7,130
Payments on Advance Refundings (6,469) (6,469)
Transfers In 236,152 8,787 8,442 36,028 289,409
Transfers Out (25,706) (4,865) (148) (606) (13,005) (22,515) (102,221) (169,066)
Net Other Financing Sources (Uses) 210,524 6,472 (148) (606) (13,005) (14,073) (65,250) 123,914
Net Change in Fund Balances 149,187 8,876 201 1,234 1,667 8,305 9,547 179,017
Fund Balances at Beginning of Year 377,184 225,917 2,654 0 332,142 599,892 559,002 2,096,791
Fund Balances at End of Year $ 526,371 $ 234,793 $ 2,855 $ 1,234 $ 333,809 $ 608,197 $ 568,549 $ 2,275,808
The notes to the financial statements are an integral part of this statement.
40
STATE OF SOUTH DAKOTA
RECONCILIATION OF THE CHANGE IN FUND BALANCES OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Net Change in Fund Balances - Governmental Funds $ 179,017
Amounts reported for governmental activities in the Statement of Activities are
different because:
Capital outlays are reported as expenditures in governmental funds. However, in the
Statement of Activities, the cost of capital assets is allocated over the useful lives as
depreciation expense. In the current period, these amounts are:
Capital Outlay $ 264,124
Depreciation Expense (118,745)
Excess of Capital Outlay Over Depreciation Expense 145,379
The net effect of various miscellaneous transactions involving capital assets, including
sales, donations, and trade-ins, is to decrease net position. (179)
Repayment of long-term debt is reported as an expenditure in governmental
funds, but the repayment reduces long-term liabilities in the Statement of
Net Position. In the current year, these amounts consist of:
Bond Principal Retirement 20,749
Capital Lease Payments 3,635
Total Long-Term Debt Repayment 24,384
Internal service funds are used by management to charge costs of certain activities to
individual funds. The net revenue (expense) of certain activities of internal service funds
is reported in governmental activities. 24,854
Net effect of revenues reported on the accrual basis in the Statement of Activities
that do not provide current financial resources and thus are not reported as revenues
in the funds until available. 26,352
The issuance of bonds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Position. Also,
governmental funds report the effect of premiums, discounts, and similar items
when debt is first issued, whereas these amounts are recognized in future periods
in the Statement of Activities.
Bonds Issued (7,130)
Bond Refunding Costs (77)
Bond Premium 657
Total Amounts Related to Bond Issuance (6,550)
Some items reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental
funds. These activities consist of:
Net (Increase) Decrease in Accrued Interest 60
(Increase) Decrease in Compensated Absences (3,121)
(Increase) Decrease in Net Pension Costs (57,919)
(Increase) Decrease in Pollution Remediation (399)
Total Additional Expenditures (61,379)
Special Item - Impairment of Capital Asset (3,636)
Change in Net Position of Governmental Activities $ 328,242
The notes to the financial statements are an integral part of this statement.
41
STATE OF SOUTH DAKOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2020
(Expressed in Thousands)
Governmental
Business-type Activities - Enterprise Funds Activities
Major
Clean Drinking Unemploy- Internal
Water State Water State ment Service
Lottery Revolving Revolving Insurance Nonmajor Total Funds
Assets
Current Assets:
Cash and Cash Equivalents $ 9,793 $ 105,624 $ 54,726 $ 128,125 $ 128,651 $ 426,919 $ 84,549
Receivables:
Interest and Dividends 64 2,995 1,851 646 5,556 226
Other Funds 251 333 584 9,722
Component Units 52 52 580
Other Governments 764 509 23,462 122 24,857 192
Loans and Notes, net 20,519 10,401 7,212 38,132
Other, net 5,735 11,759 142 17,636 6,801
Investments 14,132 7,799 21,931
Inventory 2,303 2,303 1,013
Advances to Component Units 1,061 1,061
Other Assets 156 156 4,504
Total Current Assets 15,592 145,095 75,286 163,597 139,617 539,187 107,587
Assets Held for Resale 321 321
Restricted Assets:
Restricted Cash 26 26
Restricted Investments 372 372
Net Pension Asset 7 1 2 40 50 154
Other 675 675
Investments 88,218 57,716 145,934
Capital Assets:
Land and Other Non-depreciable Assets 295 295
Property, Plant, and Equipment 4,542 11,957 16,499 111,695
Accumulated Depreciation (4,333) (6,173) (10,506) (79,102)
Construction in Progress 267 267 1,057
Total Capital Assets 209 0 0 0 6,346 6,555 33,650
Advances to Component Units 17,002 17,002
Other Noncurrent Assets 259,935 178,960 41,681 480,576
Total Assets 16,881 510,251 311,964 163,597 188,005 1,190,698 141,391
Deferred Outflows of Resources
Deferred Outflow Related to Pensions 359 66 108 2,170 2,703 8,115
Deferred Amount from Refunding of Bonds 5,677 1,630 7,307
Total Deferred Outflows of Resources 359 5,743 1,738 0 2,170 10,010 8,115
Liabilities
Current Liabilities:
Accounts Payable and Other Liabilities 4,446 431 168 15,844 5,190 26,079 4,757
Payable to:
Other Funds 6,889 1 2 94 188 7,174 1,408
Component Units 0 65
Escrow Payable 121 121
Bonds, Notes, and Leases Payable 15,285 8,141 23,426 5,156
Claims, Judgments, and Compensated Absences 149 31 48 720 948 26,708
Accrued Interest Payable 4,255 1,673 5,928
Unearned Revenue 238 528 1,476 2,242 13,038
Total Current Liabilities 11,843 20,003 10,032 16,466 7,574 65,918 51,132
Noncurrent Liabilities:
Bonds, Notes, and Leases Payable 235,780 92,097 327,877 12,519
Claims, Judgments, and Compensated Absences 131 27 42 636 836 34,093
Other Noncurrent Liabilities 34 1,268 1,302 55
Total Noncurrent Liabilities 131 235,841 93,407 0 636 330,015 46,667
Total Liabilities 11,974 255,844 103,439 16,466 8,210 395,933 97,799
Deferred Inflows of Resources
Deferred Inflow Related to Pensions 138 26 43 834 1,041 3,144
Total Deferred Inflows of Resources 138 26 43 0 834 1,041 3,144
Net Position
Net Investment in Capital Assets 209 6,343 6,552 15,950
Restricted for:
Disaster Relief Fund 10,500 10,500
Pensions 228 41 67 1,376 1,712 5,125
Other 676 1,870 2,546
Unrestricted 4,015 260,083 210,153 147,131 161,042 782,424 27,488
Total Net Position $ 5,128 $ 260,124 $ 210,220 $ 147,131 $ 181,131 $ 803,734 $ 48,563
The notes to the financial statements are an integral part of this statement.
42
STATE OF SOUTH DAKOTA
STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Governmental
Business-type Activities - Enterprise Funds Activities
Major
Clean Drinking Unemploy- Internal
Water State Water State ment Service
Lottery Revolving Revolving Insurance Nonmajor Total Funds
Operating Revenue:
Licenses, Permits, and Fees $ 1,524 $ $ $ $ 18,895 $ 20,419 $
Use of Money and Property 5,724 4,017 1,438 11,179 9
Sales and Services 175,448 1,677 1,016 8,198 186,339 287,733
Administering Programs 171,845 124 171,969
Assessments 30,105 1 30,106
Other Revenue 4 741 745 6,940
Total Operating Revenue 176,976 7,401 5,033 201,950 29,397 420,757 294,682
Operating Expenses:
Personal Services and Benefits 2,202 370 589 14,102 17,263 49,474
Travel 137 6 8 922 1,073 761
Contractual Services 10,804 694 687 9,438 21,623 59,025
Supplies and Materials 918 3,909 4,827 11,905
Grant and Other 121 3,657 3,898 981 8,657 5
Interest 8,755 3,730 12,485 554
Depreciation/Amortization 153 276 429 6,306
Lottery Prizes 36,147 36,147
Insurance Claims 241,343 943 242,286 145,442
Total Operating Expenses 50,482 13,482 8,912 241,343 30,571 344,790 273,472
Operating Income (Loss) 126,494 (6,081) (3,879) (39,393) (1,174) 75,967 21,210
Nonoperating Revenue (Expenses):
Gain on Disposal of Assets 6 6 274
Loss on Disposal of Assets 0 (126)
Investment Income 583 5,832 3,786 3,820 4,959 18,980 1,981
Other Expense (2) (34) (437) (125) (598) (8)
Grant and Other Income 330 12,006 11,434 45,650 1,635 71,055 42
Total Nonoperating Revenue (Expenses) 911 17,804 14,783 49,470 6,475 89,443 2,163
Income (Loss) Before Capital Contributions
and Transfers 127,405 11,723 10,904 10,077 5,301 165,410 23,373
Capital Contributions and Transfers:
Capital Contributions 19 19 19
Transfers In 9,101 9,101 1,462
Transfers Out (128,431) (44) (69) (734) (1,628) (130,906)
Net Capital Contributions and Transfers (128,431) (44) (69) (734) 7,492 (121,786) 1,481
Change in Net Position (1,026) 11,679 10,835 9,343 12,793 43,624 24,854
Net Position at Beginning of Year, as restated 6,154 248,445 199,385 137,788 168,338 760,110 23,709
Net Position at End of Year $ 5,128 $ 260,124 $ 210,220 $ 147,131 $ 181,131 $ 803,734 $ 48,563
The notes to the financial statements are an integral part of this statement.
43
STATE OF SOUTH DAKOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Governmental
Business-type Activities - Enterprise Funds Activities
Major
Clean Drinking Unemploy- Internal
Water State Water State ment Service
Lottery Revolving Revolving Insurance Nonmajor Total Funds
Cash Flows from Operating Activities:
Receipts from Customers and Users $ 176,369 $ 1,673 $ 1,007 $ 27,706 $ 24,766 $ 231,521 $ 101,726
Receipts from Interfund Services Provided 4,470 4,470 186,918
Receipts from Federal Agencies 148,535 223 148,758
Receipts from Loan Payments 36,677 15,424 13,340 65,441
Payments to Suppliers and for Benefits and Claims (11,286) (1,247) (791) (225,701) (12,051) (251,076) (204,636)
Payments for Employee Services (2,032) (344) (539) (12,651) (15,566) (44,071)
Payments for Interfund Services Used (839) (3,463) (4,302) (10,450)
Payments for Lottery Prizes (35,850) (35,850)
Payments for Principal Forgiveness (2,778) (3,713) (6,491)
Payments for Loans Originated (43,360) (24,080) (16,775) (84,215)
Other Receipts (Payments) 205 (8) (8) 528 (780) (63) 8,297
Net Cash Provided (Used) by Operating
Activities 126,567 (9,387) (12,700) (48,932) (2,921) 52,627 37,784
Cash Flows from Capital and Related Financing
Activities:
Capital Contributions 19 19
Purchases of Capital Assets (297) (297) (2,528)
Construction in Progress (32) (32) (258)
Sales of Capital Assets 19 19 549
Payments on Capital Lease Obligations (5,343)
Net Cash Provided (Used) by Capital and Related
Financing Activities 0 0 0 0 (291) (291) (7,580)
Cash Flows from Noncapital Financing Activities:
Transfers In 9,101 9,101 1,461
Transfers Out (127,070) (44) (69) (705) (1,626) (129,514)
Principal Payments on Bonds and Notes (13,130) (8,575) (21,705)
Interest Payments on Bonds and Notes (10,767) (4,360) (15,127)
Receipts for Administering Program 11,551 11,191 22,742
Services Provided to Others (110) (110)
Grants and Other Noncapital Financing Activities 431 209 45,649 1,668 47,957 23
Net Cash Provided (Used) by Noncapital
Financing Activities (127,070) (11,959) (1,604) 44,944 9,033 (86,656) 1,484
Cash Flows from Investing Activities:
Investment Income 595 6,746 4,218 3,820 4,984 20,363 2,063
Investment Expense (2) (15) (17) (8)
Purchase of Investment Securities (23,531) (14,214) (37,745)
Proceeds from the Sale and Maturity of Investments 83,080 44,758 127,838
Net Cash Provided (Used) by Investing Activities 593 66,295 34,762 3,820 4,969 110,439 2,055
Net Increase (Decrease) in Cash and Cash
Equivalents During the Fiscal Year 90 44,949 20,458 (168) 10,790 76,119 33,743
Cash and Cash Equivalents at Beginning of Year 9,729 60,675 34,268 128,293 117,861 350,826 50,806
Cash and Cash Equivalents at End of Year $ 9,819 $ 105,624 $ 54,726 $ 128,125 $ 128,651 $ 426,945 $ 84,549
Continued on next page
44
STATE OF SOUTH DAKOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (continued)
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Governmental
Business-type Activities - Enterprise Funds Activities
Major
Clean Drinking Unemploy- Internal
Water State Water State ment Service
Lottery Revolving Revolving Insurance Nonmajor Total Funds
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Operating Income (Loss) $ 126,494 $ (6,081) $ (3,879) $ (39,393) $ (1,174) $ 75,967 $ 21,210
Adjustments to Reconcile Operating Income (Loss):
Depreciation/Amortization Expense 153 276 429 6,306
Bad Debt Expense (274) (274)
Interest Expense 8,754 3,729 12,483 536
Bond Issuance Costs 252 252
Miscellaneous Nonoperating Items 344 344
Decrease/(Increase) in Assets:
Accounts Receivable (673) (2,214) 268 (2,619) (1,172)
Interest, Dividends & Penalties Receivable (21) (24) 114 69
Loans and Notes Receivable (12,387) (12,648) (3,367) (28,402)
Due From Other Funds (184) (130) (314) (934)
Due From Component Units (20) (20) 221
Due From Other Governments (3) (9) (23,310) 81 (23,241) (26)
Inventory (33) (33) (278)
Other Assets 1 (466) (465) 2,265
Other Restricted Assets 34 (1) 33
Restricted Net Pension Asset (5) (1) (2) (30) (38) (122)
Decrease/(Increase) in Deferred Outflows of Resources:
Deferred Outflows Related to Pensions 180 42 56 1,104 1,382 4,150
Increase/(Decrease) in Liabilities:
Accounts Payable 30 73 81 15,641 330 16,155 (177)
Accrued Liabilities (12) (3) (2) 124 107 220
Compensated Absences Payable (15) (14) (10) 161 122 271
Due To Other Funds (26) (53) (79) 162
Due To Component Units 1 1 32
Due To Other Governments 26 (2) 24 4
Unearned Revenue 9 528 (374) 163 1,881
Escrow Payable 34 34
Policy Claim Liabilities 0 2,720
Other Liabilities (29) 414 385
Increase/(Decrease) in Deferred Inflows of Resources:
Deferred Inflows Related to Pensions 22 2 8 130 162 515
Net Cash Provided (Used) by Operating
Activities $ 126,567 $ (9,387) $ (12,700) $ (48,932) $ (2,921) $ 52,627 $ 37,784
Noncash Investing, Capital, and Financing Activities:
Gain (Loss) on Disposal of Capital Assets $ $ $ $ $ $ $ 146
Capital Lease Obligations Entered Into 5,380
Transfers In (Out) of Capital Assets 19
The notes to the financial statements are an integral part of this statement.
45
STATE OF SOUTH DAKOTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
June 30, 2020
(Expressed in Thousands)
South Dakota
Retirement Private
System Purpose
Pension Trust Trust Agency
Fund Funds Funds
Assets
Cash and Cash Equivalents $ 5,660 $ 2,448 $ 47,334
Receivables:
Employer 2,789
Employee 2,995
Benefits 146
Unsettled Investment Sales 10,596
Taxes Receivable, net 47,772
Due From Other Funds 119
Investment Income 26,011 387 11
Other 111 754
Total Receivables 42,537 617 48,537
Investments, at Fair Value:
Fixed Income 4,887,290
Equities 5,126,731
Real Estate 1,245,733
Private Equity 1,002,965
Pooled Investment Funds 265,270
Total Investments 12,262,719 265,270 0
Properties, at Cost 2,061 14,212
Accumulated Depreciation (865)
Other Assets 19 13
Total Assets 12,312,131 282,560 $ 95,871
Liabilities
Payables:
Accounts Payable and Other Liabilities 2,068 206 $ 15,246
Due To Other Funds 69 85
Due To Other Governments 80,625
Compensated Absences Payable 392
Unsettled Investment Purchases 12,263
Total Liabilities 14,792 291 $ 95,871
Net Position
Restricted for Pension Benefits 12,297,339
Restricted for Others 282,269
Total Net Position $ 12,297,339 $ 282,269
The notes to the financial statements are an integral part of this statement.
46
STATE OF SOUTH DAKOTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
South Dakota
Retirement Private
System Purpose
Pension Trust Trust
Fund Funds
Additions
Contributions:
Employee $ 131,542 $
Employer 131,682
From Clients and Inmates 9,430
Other 7,922
Total Contributions 263,224 17,352
Investment Income:
From Investing Activities
Net Increase (Decrease) in Fair Value of Investments (36,541) 8,406
Interest 112,915
Dividends 143,215
Real Estate 22,315 380
Pooled Interest and Dividends 5,043
Total Investment Activity Income 241,904 13,829
Less Investment Activity Expenses (50,396)
Net Investment Income (Loss) 191,508 13,829
From Security Lending Activities
Securities Lending Income 1,044 28
Securities Lending Expenses (313)
Escheated Property 137
Miscellaneous Income 754
Total Additions 455,463 32,100
Deductions
Benefits 602,352
Refunds of Contributions 23,444
Distribution to School Districts 12,695
Payments Made for Trust Purposes 10,360
Administrative Expenses 5,127 8
Total Deductions 630,923 23,063
Change in Net Position (175,460) 9,037
Net Position at Beginning of Year 12,472,799 273,232
Net Position at End of Year $ 12,297,339 $ 282,269
The notes to the financial statements are an integral part of this statement.
47
48
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............................................................................. 50
A. Basis of Presentation ............................................................................................................................. 50
B. Reporting Entity ...................................................................................................................................... 50
C. Government-wide and Fund Financial Statements ................................................................................ 53
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation .............................. 54
E. Budgetary Accounting ............................................................................................................................ 56
F. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources,
and Net Position/Fund Balance.............................................................................................................. 56
G. Compensated Absences ........................................................................................................................ 59
H. Lottery Security Deposits ....................................................................................................................... 59
I. Interfund Activity and Balances .............................................................................................................. 59
J. Pensions ................................................................................................................................................. 59
2. ACCOUNTING CHANGES, RESTATEMENTS, AND RECLASSIFICATIONS ............................................. 60
3. CASH, DEPOSITS, AND INVESTMENTS ...................................................................................................... 61
4. DISAGGREGATION OF RECEIVABLES AND PAYABLES ......................................................................... 78
5. INTERFUND TRANSACTIONS ....................................................................................................................... 79
6. CAPITAL ASSETS .......................................................................................................................................... 80
7. RETIREMENT PLANS .................................................................................................................................... 85
8. DEFERRED COMPENSATION PLAN ............................................................................................................ 89
9. SPECIAL PAY PLAN ..................................................................................................................................... 89
10. FUND BALANCES AND NET POSITION ....................................................................................................... 90
11. COMMITMENTS .............................................................................................................................................. 93
12. SELF-INSURANCE ......................................................................................................................................... 96
13. OPERATING LEASES .................................................................................................................................... 98
14. LONG-TERM LIABILITIES .............................................................................................................................. 99
15. FUNCTIONAL DISTRIBUTION OF HIGHER EDUCATION OPERATING EXPENSES .............................. 112
16. POSTSECONDARY TECHNICAL INSTITUTE SYSTEM ............................................................................. 112
17. TAX ABATEMENTS ...................................................................................................................................... 113
18. RELATED PARTY TRANSACTIONS ........................................................................................................... 113
19. SUBSEQUENT EVENTS ............................................................................................................................... 115
20. CONTINGENCIES AND LITIGATION ........................................................................................................... 116
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NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2020
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles
(GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GAAP allows for and requires
management to make estimates and assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
B. Reporting Entity
For financial reporting purposes, the State of South Dakota (the State) reporting entity includes the primary government
and its component units. The primary government consists of state departments, bureaus, boards, and commissions.
Component units are legally separate governmental organizations for which the State is considered to be financially
accountable and other organizations for which the nature of their relationship is such that exclusion would cause the
State's financial statements to be misleading or incomplete.
Blended Component Units
Blended component units are legally separate entities that are, in substance, part of the State’s primary government. A
component unit is blended if: (1) services are provided, or almost entirely provided, to the primary government or otherwise
exclusively, or almost exclusively, benefits the primary government; (2) the governing body is substantively the same as
the governing board of the primary government; (3) the component unit’s total debt outstanding is expected to be repaid
entirely, or almost entirely, by the primary government; or (4) the primary government is the sole corporate member of a
component unit incorporated as a not-for-profit corporation.
The State’s blended component units are:
The South Dakota Building Authority (SDBA) was created and organized by Chapter 5-12 of the South Dakota
Codified Laws. The purpose of the SDBA is to build and otherwise provide certain facilities for use by the State.
Amounts issued by the SDBA shall not be deemed to constitute a debt of the State or any political subdivision
thereof. SDBA is authorized to issue revenue bonds, notes, or other obligations on behalf of state institutions for
the purpose of constructing, equipping and improving facilities, or refinancing of outstanding debt. SDBA is
comprised of a seven member board that is appointed by the Governor, with the advice and consent of the Senate.
No person shall be appointed to SDBA who is an elected official of the State or any subdivision thereof. One of the
members shall be designated by the Governor as chairman. The indebtedness or obligations incurred or created
by SDBA may not be or become a lien, charge, or liability against the State. Because the State is able to impose
its will over SDBA and the services provided by SDBA are almost entirely provided to the State, SDBA is considered
a blended component unit. This financial presentation does not change the legal liability of the indebtedness.
The South Dakota Conservancy District (SDCD) was created by the Legislature under Chapter 46A-2 of the
South Dakota Codified Law as a body politic and corporate for the purpose of constructing water resource facilities
for the conservation, storage, distribution, and utilization of water for multiple purposes within the State. SDCD
has two funds: the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund. The Clean
Water State Revolving Fund is a low interest loan program used to finance the construction of wastewater facilities,
storm sewers, and non-point source pollution control projects. The Drinking Water State Revolving Fund is a low
interest loan program used to finance drinking water projects. SDCD bonds do not constitute a debt or liability of
the State, or a pledge of the faith and credit of the State. Because the State is able to impose its will over SDCD
and the governing body is substantively the same as the governing body of the primary government, SDCD is
considered a blended component of the primary government. This financial presentation does not change the legal
liability of the indebtedness.
50
The Educational Enhancement Funding Corporation (EEFC) is a special purpose corporation, organized under
Chapter 5-12 of the South Dakota Codified Law. EEFC was established to purchase all of the State of South
Dakota’s future right, title, and interest in the Tobacco Settlement Revenues (TSRs) under the Master Settlement
Agreement. The purchase price of the State’s future right, title, and interest in the TSRs has been financed by the
issuance of the bonds and the residual certificate. The residual certificate represents the right of the State to receive
all amounts required to be distributed after payment of all outstanding bonds and other liabilities of EEFC as set
forth in the Trust Indenture. Obligations issued by EEFC shall not be deemed to constitute a debt, liability, or
obligation of the State. Because there is a financial benefit/burden relationship between EEFC and the State and
the services provided by the EEFC are entirely provided to the State, EEFC is considered a blended component
unit. This financial presentation does not change the legal liability of the indebtedness.
The South Dakota Trust Company Receivership and Liquidation Captive Insurance Company, LLC (Trust
Captive), a nonprofit limited liability company, was established December 31, 2016. The Trust Captive was
established to provide insurance to pay for losses if the South Dakota Department of Labor and Regulation,
Division of Banking must take over a trust company chartered and regulated by the Division. The obligations of
the Trust Captive shall not be deemed to constitute a debt, liability, or obligation of the State. Because the State
is able to impose its will over the Trust Captive, and is the sole corporate member, the Trust Captive is considered
a blended component unit. This financial presentation does not change the legal liability of the indebtedness. The
Trust Captive has a fiscal year end of December 31 and is presented accordingly.
Discretely Presented Component Units
Discretely presented component units are legally separate organizations that are either financially accountable to the
State, or their exclusion would cause the State's financial statements to be misleading or incomplete. Discretely
presented component units are reported in separate columns or rows in the Government-wide Financial Statements to
emphasize that they are legally separate from the State.
The State’s major discretely presented component units are:
The South Dakota Housing Development Authority (HDA) was created by the Legislature under Chapter 11-
11 of the South Dakota Codified Law for the purpose of encouraging the investment of private capital and
stimulating the construction and rehabilitation of residential housing for the people of the State. HDA issues
negotiable notes and bonds. If an issue utilizes private activity bond cap, authorization is needed by the Governor
of South Dakota. Notes and bonds of HDA do not constitute a debt or liability of the State, or a pledge of the faith
and credit of the State. These notes and bonds are payable solely from the revenues or assets of HDA. Because
the State appoints a voting majority of the board and is able to impose its will over HDA, but does not meet any of
the GASB’s criteria for blending, HDA is considered a discretely presented component unit of the State. This
financial presentation does not change the legal liability of the indebtedness.
The South Dakota Science and Technology Authority (STA) was created by the Legislature under Chapter 1-
16H of the South Dakota Codified Law to foster and facilitate science and technology investigation,
experimentation, and development. The initial focus of STA was to support the transfer of the Homestake Gold
Mine in Lead, South Dakota for development by the research community to become the world’s premier
underground Science and Engineering Laboratory. Because the State appoints a voting majority of the board
and past history has established a pattern of the State assuming the obligation to finance STA which creates a
financial benefit/burden relationship, but does not meet any of GASB’s criteria for blending, STA is considered a
discretely presented component unit of the State. This financial presentation does not change the legal liability of
the indebtedness.
Higher Education (Higher Ed) consists of six state public universities (Black Hills State University, Dakota State
University, Northern State University, South Dakota School of Mines and Technology, South Dakota State
University, and University of South Dakota), two special schools (South Dakota School for the Deaf and South
Dakota School for the Blind and Visually Impaired), and the governing board, South Dakota Board of Regents
(BOR). BOR was created under Article XIV of the Constitution of the State of South Dakota. Chapter 13-49 of
the South Dakota Codified Law establishes the authority for BOR to govern the system of public higher education
in the State. The system’s primary goal is to provide high quality, diverse educational opportunities, and services
to the people of South Dakota through the effective use of the resources entrusted to it. Because the State is
able to impose its will over the Higher Ed system and BOR and a financial benefit/burden relationship exists, but
does not meet the GASB’s criteria for blending, Higher Ed is considered a discretely presented component unit
of the State.
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Included in the balances and operating results for Higher Ed are six foundations that contribute financially to the
six state public universities through fundraising. The foundations include Black Hills State University Foundation,
Dakota State University Foundation, Northern State University Foundation, South Dakota School of Mines and
Technology Foundation, South Dakota State University Foundation, and University of South Dakota Foundation.
The universities do not control the timing or amount of receipts from their foundations. However, a majority of
resources or income the foundations hold and invest are restricted by the donors for activities of the respective
universities. These restricted resources held by the foundations can only be used by, or for the benefit of the
specific universities; therefore, the foundations are considered component units of the universities and are
included in Higher Ed.
Black Hills State University Foundation, South Dakota State University Foundation, and University of South
Dakota Foundation have fiscal year ends of December 31. The different fiscal year ends for these foundations
could create timing differences. The process of eliminating activity between these universities and their
foundations could be affected by these timing differences.
The foundations are private not-for-profit entities that report under Financial Accounting Standards Board (FASB)
pronouncements. As such, certain revenue recognition criteria and presentation features are different from that
of the Governmental Accounting Standards Board (GASB). The foundations’ financial statements have not been
restated to reflect GASB pronouncements, but have been reformatted to comply with the classification and
display requirements in GASB pronouncements. The foundations’ notes to the financial statements have not
been reformatted to reflect GASB pronouncements and thus are not reported in the notes to the financial
statements of the primary government.
The State’s nonmajor discretely presented component units are:
The South Dakota Economic Development Finance Authority (EDFA) was created by the Legislature under
Chapter 01-16B of the South Dakota Codified Law for the purpose of making loans to businesses to spawn
economic growth. Obligations issued by EDFA shall not be deemed to constitute a debt, liability, or obligation of
the State. Because the State appoints a voting majority of the board and is able to impose its will over EDFA, but
does not meet the GASB’s criteria for blending, EDFA is considered a discretely presented component unit of the
State. This financial presentation does not change the legal liability of the indebtedness.
The South Dakota Value Added Finance Authority (VAFA) was created by the Legislature under Chapter 1-
16E of the South Dakota Codified Law for the purpose of administering the beginning farmer bond and
agribusiness bonding programs and making annual recommendations to the Legislature and Governor on
programs to develop and promote agricultural processing activity in the State. The principal and interest on the
bonds do not constitute an indebtedness of the State. Because the State appoints a voting majority of the board
and is able to impose its will over VAFA, but does not meet the GASB’s criteria for blending, VAFA is considered a
discretely presented component unit of the State. This financial presentation does not change the legal liability of
the indebtedness.
The South Dakota Ellsworth Development Authority (EDA) was established by the Legislature under Chapter
01-16J of the South Dakota Codified Law for the purpose of protecting and promoting the economic impact of
Ellsworth Air Force Base and associated industry. Payments of the principal of, or interest on, the bonds, notes,
instruments, or obligations issued by EDA shall not be deemed to constitute a debt, liability, or obligation of the
State. Because the State appoints a voting majority of the board and a financial benefit/burden relationship exists,
but does not meet the GASB’s criteria for blending, EDA is considered a discretely presented component unit of the
State. This financial presentation does not change the legal liability of the indebtedness.
The South Dakota Authority Captive Insurance Company, LLC (The Authority Captive), a nonprofit limited
liability company, was established August 12, 2015, to cover some of the liability risks of six authorities of the
State (South Dakota Science and Technology Authority, South Dakota Building Authority, South Dakota Health
and Educational Facilities Authority, Educational Enhancement Funding Corporation, South Dakota Ellsworth
Development Authority, and South Dakota Housing Development Authority). The Authority Captive’s coverage
includes: commercial general liability; directors, officers, and entity coverage; employment practices liability; and
errors and omissions. The obligations of The Authority Captive shall not be deemed to constitute a debt, liability,
or obligation of the State. Because the State appoints a voting majority of the board and is able to impose its will
over The Authority Captive, but does not meet the GASB’s criteria for blending, The Authority Captive is
considered a discretely presented component unit of the State. This financial presentation does not change the
legal liability of the indebtedness. The Authority Captive has a fiscal year end of December 31.
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The South Dakota Property and Casualty Captive Insurance Company, LLC (The Property Captive), a
nonprofit limited liability company, was established September 14, 2015, to provide property, including content,
business income, and extra expense coverage on the State’s buildings, including Higher Education buildings.
Because the State appoints a voting majority of the board and is able to impose its will over The Property Captive,
but does not meet the GASB’s criteria for blending, The Property Captive is considered a discretely presented
component unit of the State. This financial presentation does not change the legal liability of the indebtedness.
The Property Captive has a fiscal year end of December 31.
Related Organizations
The South Dakota Health and Educational Facilities Authority (HEFA) is a body politic, corporate, and public
instrumentality of the State of South Dakota. The HEFA was created in 1972 to enhance the health and education of
citizens of the State by providing healthcare, educational, and other non-profit institutions access to low cost capital.
The State’s accountability does not extend beyond appointing a voting majority of HEFA’s board members. This
relationship does not meet the GASB criteria of a component unit; therefore, HEFA is not included as part of the primary
government reporting entity.
Separately Issued Financial Statements
Separately issued financial statements for the entities listed below are available from the Department of Legislative
Audit, 427 South Chapelle, c/o 500 East Capitol, by calling (605) 773-3595, or online at
www.legislativeaudit.sd.gov/reports/reports.aspx:
➢ South Dakota Building Authority
➢ South Dakota Conservancy District
➢ Educational Enhancement Funding Corporation
➢ South Dakota Trust Company Receivership and Liquidation Captive Insurance Company
➢ South Dakota Housing Development Authority
➢ South Dakota Science and Technology Authority
➢ South Dakota Economic Development Finance Authority
➢ South Dakota Ellsworth Development Authority
➢ South Dakota Authority Captive Insurance Company
➢ South Dakota Property and Casualty Captive Insurance Company
➢ South Dakota Health and Educational Facilities Authority
Higher Education and South Dakota Value Added Finance Authority do not have separately issued financial statements.
C. Government-wide and Fund Financial Statements
The Government-wide Financial Statements include the Statement of Net Position and the Statement of Activities. The
Statement of Net Position and the Statement of Activities report all nonfiduciary activities of the primary government
and its component units. Primary government activities are distinguished between governmental and business-type
activities. Governmental activities are generally supported by taxes and intergovernmental revenues. Business-type
activities are financed in whole or in part by fees charged to external parties for goods or services. The focus of the
Government-wide Financial Statements and Notes to the Financial Statements is the primary government. A separate
column is presented for each major discretely presented component unit and a column for all nonmajor discretely
presented component units in the aggregate.
The Statement of Net Position presents the reporting entity’s nonfiduciary assets and deferred outflows of resources
less liabilities and deferred inflows of resources, with the difference reported as net position.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable within a specific function. Program
revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function; and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function. Taxes and other items not properly included as program revenues are
reported as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though
fiduciary funds are excluded from the Government-wide Financial Statements. Major individual governmental funds and
53
major individual enterprise funds are reported as separate columns in the fund financial statements, with nonmajor
funds being combined into a single column.
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-wide Financial Statements
The Statement of Net Position and Statement of Activities are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Nonexchange transactions, in which the State receives
value without directly giving equal value in exchange, include taxes, grants, and donations. Tax revenue is recognized
in the fiscal year in which the related sales, income, or activity being taxed occurred. At June 30, 2020, there was $25.4
million of bank tax receipts that were not recognizable in the State’s financial statements because a reasonable estimate
was unable to be determined for how much is considered measurable. Revenue from grants and similar items are
recognized in the fiscal year in which all eligibility requirements imposed by the provider have been met.
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period, or soon enough thereafter
to pay liabilities of the current period. Sales tax, motor fuel taxes, grant revenue, investment income, and charges for
goods and services are all considered to be susceptible to accrual if collected within 60 days of the end of the current
fiscal year. Bank taxes are considered measurable when returns are filed, not when payments are received. All other
revenue is considered to be measurable and available only when cash is received.
Expenditures generally are recorded when a liability is incurred, as under the accrual basis of accounting. However,
expenditures related to debt service, compensated absences, capital leases, and claims and judgments are recorded
only when payment is due and payable.
Proprietary, Fiduciary, and Similar Component Units Financial Statements
The financial statements of the proprietary funds, fiduciary funds, and similar component units are reported using the
economic resources measurement focus and the accrual basis of accounting, similar to the Government-wide Financial
Statements described above. Proprietary funds include both enterprise and internal service fund types.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. Revenues and expenses not meeting this definition, such as subsidies and
investment earnings, are reported as nonoperating.
Financial Statement Presentation
The State reports the following major governmental funds:
The General Fund is the State’s primary operating fund. It accounts for all financial resources except those
required to be accounted for in another fund.
The Transportation Fund accounts for dedicated state tax revenue for the construction, maintenance, and
supervision of state highways and bridges and federal grants received by the Department of Transportation.
The Social Services Federal Fund accounts for federal grants received by the Department of Social Services
to fund social welfare programs.
The COVID-19 Federal Fund accounts for federal grants received by the State due to the COVID-19 Pandemic.
The Dakota Cement Trust Fund was created with the proceeds from the sale of the State Cement Plant which
is invested by the South Dakota Investment Council. Transfers from this fund are made to the General Fund for
the support of education in South Dakota.
54
The Education Enhancement Trust Fund primarily accounts for revenue from the Tobacco Settlement and
securitization of future tobacco revenue. Income from the fund is used to fund education enhancement programs.
The State reports the following major proprietary funds:
The Clean Water State Revolving Fund is used to provide loans to local governments for wastewater, storm
sewer, and nonpoint source pollution control projects.
The Drinking Water State Revolving Fund is used to provide loans to local governments for drinking water
projects.
The Lottery Fund is used to account for the operations of the State Lottery.
The Unemployment Insurance Fund is used to account for tax receipts from employers within the State of
South Dakota and Federal Unemployment Programs and accounts for benefits paid to unemployed persons.
In addition, the State reports the following fund types:
Governmental Funds:
Special Revenue Funds account for specific revenue sources that are legally restricted or committed to expenditures
for specific purposes. Special revenue funds account for federal grant programs, taxes with distributions defined by the
State Constitution or state laws, and other resources restricted or committed as to purpose.
Debt Service Funds account for the accumulation of resources for the retirement of long-term debt principal and
interest.
The Capital Projects Fund administered by the South Dakota Building Authority accounts for resources used for the
acquisition or construction of major capital facilities, other than those financed by proprietary and fiduciary funds, or
component units.
The Permanent Fund administered by South Dakota School and Public Lands accounts for resources that are legally
restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting
government’s programs.
Proprietary Funds:
Enterprise Funds report activities for which a fee is charged to external users for goods or services. This fund type is
also used when the activity is financed with debt that is secured by a pledge of the net revenues from the fees.
Internal Service Funds report activities that provide goods or services to other funds, departments, or agencies of the
primary government and its component units or to other governments, on a cost-reimbursement basis. These goods
and services include information services, telecommunications, insurance risk pools, and fleet and travel management.
In the Government-wide Financial Statements, internal service funds activity is included in Governmental Activities.
Fiduciary Funds:
Pension Funds account for resources that are required to be held in trust for the members and beneficiaries of the
State’s defined benefit pension plan.
Private Purpose Trust Funds account for resources of all other trust arrangements in which principal and income
benefit individuals, private organizations, or other governments. The Common School Fund accounts for resources that
are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support local
school districts.
Agency Funds report assets and liabilities of resources held for temporary investment and remittance of the resources
to individuals, private organizations, or other governments. Examples of funds in this category include local government
tax collections by the Department of Revenue, child support payments collected by the Department of Social Services,
and employee payroll withholdings by the State Auditor.
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E. Budgetary Accounting
Agencies and departments submit budget requests to the Bureau of Finance and Management. The commissioner
approves the Bureau’s budget recommendation that is presented to the Governor for her consideration. The Governor’s
decisions are presented to the Legislature in the Governor’s budget book.
The financial plan for each fiscal year is adopted by the Legislature by the passage of a general appropriations bill,
special appropriations bills, and deferred maintenance appropriations. The formal budget approved by the Legislature
does not include budgeting for revenues and other financing sources/uses.
The General Appropriations Act includes only appropriations for ordinary current and capital expenses of the executive,
legislative, and judicial branches of the State. State law classifies appropriations into general, federal, and other fund
budget classifications. The budget is controlled at the program level for personal services and operating expenses.
Detailed appropriation information at this level is presented in the Available Funds Report that is available from the
Bureau of Finance and Management.
The State’s annual budget is prepared on the cash basis of accounting. Encumbrance accounting is utilized to reserve
a portion of the budget to future periods for payment of purchase orders, contracts, and other commitments.
Encumbrances at June 30, 2020, totaled $19.2 million. The encumbrance amount is broken down by major fund and
nonmajor fund below (Expressed in Thousands):
Amount
Fund Encumbered
Major Fund:
General Fund $ 7,195
Transportation 8,040
Non-Major:
Non-Major Total 3,922
Total $ 19,157
F. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources,
and Net Position/Fund Balance
Cash and Cash Equivalents and Investments
Cash includes cash on hand, demand deposits, and foreign currency balances. Foreign currency cash balances are
translated into United States Dollars (USD) using year-end spot foreign currency exchange rates. Cash equivalents
include non-negotiable certificates of deposit, which are reported at cost. The State Investment Officer is responsible
for the investment of state public funds. State public funds in the Cash Flow Fund are invested using the pooled deposit
and investment concept which preserves the integrity of the fund cash balances of each state fund while simultaneously
allowing the deposit and investment of aggregate idle fund monies. Investment income is allocated to participating funds
per South Dakota law. Participating funds are determined by the Bureau of Finance and Management and approved by
the Joint Interim Appropriations Committee of the Legislature. Investment income from the state trust funds is deposited
into their respective funds.
Investments, as reported on the balance sheet, represent all investments not considered cash equivalents. Investments
may include corporate stocks, bonds, convertible debt, U.S. government and agency securities, mortgage backed
securities, negotiable certificates of deposit, repurchase agreements, annuity contracts, investment contracts,
international securities, private equity, and real estate. Investments are reported at fair value, in accordance with GASB
Statement No. 72 – Fair Value Measurement and Application.
Investments denominated in foreign currencies are translated into USD using the year-end spot foreign currency
exchange rates. Foreign exchange rate gains or losses are included with the net appreciation in fair value of
investments.
The preparation of financial statements in accordance with GAAP requires management to make estimates that affect
the reported amounts of net position as of June 30, 2020. Actual results could differ from those estimates.
For additional information see Note 3. Cash, Deposits, and Investments in the Notes to the Financial Statements.
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Receivables
Receivables in the governmental and business-type activities consist mainly of amounts due from component units,
other governments, loans, and customers.
Inventories
Inventories reported in the governmental fund types are reported at cost using the weighted average cost method.
Proprietary fund type inventories are valued at the lower of cost or market, using the moving average cost method.
Inventories reported in the Higher Education component unit discrete presentation are reported at cost using the FIFO
method. Inventories are expensed using the consumption method.
Federal commodities on hand are reported as inventories, offset by unearned revenue. Commodities are reported at
fair value established by the federal government at the date received. At June 30, 2020, the commodities inventory was
reported in the amount of $0.4 million.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and
similar items), are reported in the applicable governmental or business-type activities columns in the Government-wide
Financial Statements. Capital assets are capitalized at cost, or estimated historical cost, if original cost records are not
available. Property, plant, and equipment acquired through capital leases are capitalized at fair market value at the
inception of the lease. Donated capital assets, donated works of art and similar items, and capital assets received in
service concession arrangements are capitalized at acquisition value at the acquisition date.
All land is capitalized regardless of cost. Land improvements are capitalized when the cost of the improvement is
$50,000 or more. Buildings and building improvements are capitalized when the cost is $100,000 or more. Equipment
is capitalized when the cost of individual items is $5,000 or more. Infrastructure assets are capitalized when the cost of
the asset is $1,000,000 or more for governmental funds and fiduciary funds, and $50,000 or more for proprietary funds
and component units. Intangible assets such as easements, patents, trademarks, internally generated computer
software, etc. (as defined by GASB Statement 51) are capitalized when the cost is $250,000 or more, except for
purchased software licenses which are capitalized when the cost is $5,000 or more. The costs of normal maintenance
and repairs that do not add to the value of the asset or materially extend an asset’s life are not capitalized.
Depreciable capital assets of the primary government, as well as the component units, are depreciated using the straight
line method over the following estimated useful lives:
Land Improvements 20-30
Buildings and Improvements 15-50
Infrastructure 20-99
Equipment 3-17
Intangible Assets 3-25
The State owns works of art and historical treasures that have not been capitalized and depreciated because the assets
cannot be reasonably valued and/or the assets have inexhaustible useful lives. Works of art and historical treasures
include items such as statues, monuments, historical documents, paintings, artifacts, etc. Higher Education, a business-
type activity discretely presented component unit, adopted the State’s policy on capitalizing historical treasures and
collections. The exceptions to this policy are the Memorial Art Center Collection at the South Dakota State University
and the Oscar Howe paintings collection at the University of South Dakota. The collections are valued at the historical
cost or estimated fair market value at the time of donation. The reported capitalized value of these collections was $10.0
million, as of June 30, 2020. All proceeds from the sale of items within these collections will be used to acquire other
items for the collections.
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net position by the government that applies to a future
period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of
resources are reported on the Government-wide Statement of Net Position in the applicable columns for governmental
activities, business-type activities, or component units. Deferred outflows of resources of governmental funds,
proprietary funds, and component units are reported in detail in their respective fund statements.
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Long-term Obligations
In the Government-wide Financial Statements and Proprietary Fund Financial Statements, long-term obligations are
reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the
bonds outstanding method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Deferred Inflows of Resources
Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and will not be
recognized as an inflow of resources (revenue) until that time. Deferred inflows of resources are reported on the
Government-wide Statement of Net Position in the applicable columns for governmental activities, business-type
activities, or component units. Deferred inflows of resources of governmental funds, proprietary funds, and component
units are reported in detail in their respective fund statements.
Net Position and Fund Balances
“Net position” on the Government-wide, Proprietary, and Fiduciary Funds Financial Statements and “fund balance” on
the Governmental Fund Financial Statements consists of assets and deferred outflows of resources less liabilities and
deferred inflows of resources. Net position is reported in three categories:
Net investment in capital assets is a category reported in the Government-wide Statement of Net Position
and consists of capital assets, net of accumulated depreciation, and reduced by outstanding balances for
bonds, notes, and other debts that are attributed to the acquisition, construction, or improvement of those
assets.
Restricted net position consists of assets that have externally imposed constraints placed on them by
either creditors, grantors, contributors, laws or regulations of other governments, or constraints imposed by
law through constitutional provisions or enabling legislation of the State.
Unrestricted net position consists of assets that do not meet the definition of the two preceding categories.
The State’s policy is that unrestricted amounts are spent first, when expenditures are incurred for purposes of which
multiple resources are available within a fund.
In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based
primarily on the extent to which the State is bound to honor constraints on the specific purposes for which amounts in
those funds can be spent. Fund balances can be reported in five different categories:
Nonspendable fund balance includes amounts that cannot be spent because they are either not in
spendable form or are legally or contractually required to be maintained intact. The “not in spendable form”
criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid
amounts. It also includes the long-term amount of loans and notes receivable, as well as property acquired
for resale.
Restricted fund balance consists of assets that have externally imposed constraints placed on them by
either creditors, grantors, contributors, laws or regulations of other governments, or constraints imposed by
law through constitutional provisions or enabling legislation of the State.
Committed fund balance represents amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the State Legislature through legislation passed into law.
Assigned fund balance includes amounts that are constrained by the State’s intent to be used for specific
purposes, but are neither restricted nor committed. Assignments of fund balance are created by the executive
branch or by directive of the Appropriations Committee of the Legislature or in some cases by passage of
an appropriation. In governmental funds other than the General Fund, assigned fund balance also represents
the remaining amount that is not restricted or committed.
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Unassigned fund balance represents the fund balance that has not been assigned to other funds and that
has not been restricted, committed, or assigned to specific purposes within the General Fund. The General
Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not
appropriate to report a positive unassigned fund balance amount. However, in governmental funds other
than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted,
committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance
in that fund.
The State does not use separate funds to segregate restricted, committed, and assigned resources. It instead uses the
accounting structure to track sources of resources. The State’s policy is that assigned amounts are spent first, then
committed, restricted, and finally unassigned when expenditures are incurred for purposes of which multiple resources
are available within the accounting structure.
G. Compensated Absences
All full-time and permanent part-time employees earn vacation leave and sick leave. Employees earn fifteen days of
vacation leave per year that can be accumulated to thirty days, except for employees with more than fifteen years of
employment, who earn twenty days of vacation leave per year that can be accumulated to forty days. Upon termination,
employees receive payment for their accumulated vacation leave. Employees earn fourteen days of sick leave per year.
Unless dismissed for cause, employees who terminate after seven years of continuous employment receive payment
for one-fourth of their accumulated sick leave balance, not to exceed four hundred eighty hours.
A liability has been recorded in the Government-wide and Fund Financial Statements for compensated absences in
accordance with GASB statements.
H. Lottery Security Deposits
State law requires video lottery operators to furnish security to the Lottery. Security may be in the form of a surety bond,
deposit in cash, an irrevocable letter of credit, or a certificate of deposit issued by a South Dakota financial institution
with the Lottery endorsed on it as a payee. As of June 30, 2020, the amount of certificate of deposits and deposits in
cash being held by the Lottery was $0.4 million and is included in restricted cash and investments on the balance sheet.
The amount of $6.3 million was in the form of surety bonds or irrevocable letters of credit and is not reported on the
Statement of Net Position.
I. Interfund Activity and Balances
Interfund activity, as a general rule, has been eliminated from the Government-wide Financial Statements. An exception
to this rule is activities between funds reported as governmental activities and funds reported as business-type activities.
An example is the transfer of profits from the Lottery Fund to the General Fund. Elimination of these activities would
distort the direct costs and program revenues for the functions concerned.
In the fund financial statements, transfers represent flows of assets (such as goods or cash) without equivalent flows of
assets in return, or a requirement for repayment. In addition, transfers are recorded when a fund receiving revenue
provides it to the fund which expends the resources. An example is securities taxes collected by the Department of
Labor and Regulation which are deposited into a special revenue fund but are transferred to and expended by the
General Fund.
Interfund balances and interfund receivables and payables have been eliminated from the Statement of Net Position.
J. Pensions
For the purposes of measuring the net pension asset, deferred outflows of resources and deferred inflow of resources
related to pensions and pension expense, information about the fiduciary net position of the South Dakota Retirement
System (SDRS), and additions to/deductions from SDRS fiduciary net position have been determined on the same
basis as they are reported by SDRS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with the benefits terms. Investments are reported at fair value.
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2. ACCOUNTING CHANGES, RESTATEMENTS, AND
RECLASSIFICATIONS
Implementation of Recent GASB Pronouncements
For the fiscal year ended June 30, 2020, the State implemented the following new accounting standards issued by the
Governmental Accounting Standards Board (GASB):
GASB Statement 95, Postponement of the Effective Dates of Certain Authoritative Guidance. This
Statement provides temporary relief to governments by postponing the effective dates of GASB Statements and
Implementation Guides that first became effective or are scheduled to become effective for periods beginning
after June 15, 2018, and later.
This Statement had no effect on the State.
For the fiscal years ended June 30, 2019 and 2020, The South Dakota Housing Development Authority, reported as a
discretely presented component unit, early implemented the following new accounting standards issued by the
Governmental Accounting Standards Board (GASB):
GASB Statement 91, Conduit Debt Obligations. The primary objective of this Statement establishes a single
method of reporting conduit debt obligations by issuers and improves the required note disclosure of those
conduit debt obligations.
The State as well as the remaining component units have not implemented GASB 91 for this reporting period.
Restatements – Primary Government
Beginning net position for the Unemployment Insurance Fund, reported as a major proprietary fund, increased by $8.4
million for understated employer taxes receivable in the prior year. The beginning net position reported in the business
type activities in the Government-wide Statement of Activities increased by the same amount.
Restatements – Component Units
The beginning net position balance reported for Higher Education, reported as a major discretely component unit,
increased by $3.1 million for errors in the reporting of receivables, liabilities, fixed assets, and other miscellaneous
reporting errors in prior years. This restatement will have the same effect on the government-wide financial statements.
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3. CASH, DEPOSITS, AND INVESTMENTS
South Dakota Codified Laws (SDCL) and administrative rules authorize the types of deposits and investments. Most
State public funds are invested in the Cash Flow Portfolio using the pooled deposit and investment concept. This
concept allows for the deposit and investment of aggregate idle fund monies, while preserving the integrity of fund cash
balances of each State fund.
Negative cash balances in funds participating in the Cash Flow Portfolio are reclassified at year-end as interfund
payables. The cash and cash equivalents balance in the General Fund was reduced by $21.5 million for deficit cash
balances that existed in various state funds at June 30, 2020, and is reported as an interfund receivable.
Certain funds and component units have statutory authority to make deposits and investments in specific types of
securities, which may be more or less restrictive than the general authority covering the Cash Flow Portfolio.
Additionally, bond provisions may require restrictions on types of investments. The State was in compliance with legal
requirements governing deposit and investing activities.
Securities that are unclaimed at financial institutions are transferred to the State. The securities or proceeds can be
claimed by the owners under established procedures. The Office of the State Treasurer administers any unclaimed
securities per SDCL §43-41B, Uniform Unclaimed Property Act. Effective July 1, 2018, any stocks, bonds, and other
negotiable instruments will be sold within one hundred eighty days of confirmed receipt, unless involved in an open
claim. As of June 30, 2020, the securities, for which cost at the time of acquisition is not readily available, have a market
value of $0.5 million and are shown as securities held as escheat property in the General Fund.
A. Primary Government
Investments of the Primary Government are grouped into four categories based upon investment objectives and risk.
The first category is the Cash Flow Portfolio. This category represents the pooled public funds of the Primary
Government (comprising 89% of the Cash Flow Portfolio) and discretely presented component units (comprising 11%
of the Cash Flow Portfolio). Higher Education, the Science and Technology Authority, the Housing Development
Authority, the Property and Casualty Captive Insurance Company, and the Authority Captive Insurance Company are
discretely presented component units and have deposits and investments in the Cash Flow Portfolio. Because of the
pooled deposit and investment concept of the Cash Flow Portfolio, the discretely presented component units’ share of
the portfolio cannot be broken out separately for risk disclosure purposes. For risk disclosure purposes, their share of
the Cash Flow Portfolio is included in the Primary Government. The second category is the Retirement Portfolio. This
category represents the investments of the South Dakota Retirement System. The third category is the Trust Portfolios.
This category includes the portfolios of School and Public Lands, Dakota Cement Trust Fund, Education Enhancement
Trust Fund, and Health Care Trust Fund. The fourth category is Other Funds. This category represents funds that are
not managed by the South Dakota Investment Council (SDIC) and includes Educational Enhancement Funding
Corporation, Clean Water State Revolving Fund, Drinking Water State Revolving Fund, and the Vocational Education
Program.
Deposits
Custodial Credit Risk. Custodial credit risk is the risk that, in the event of the failure of a depository institution, the
State of South Dakota will not be able to recover deposits or will not be able to recover collateral securities that are in
possession of an outside party. The Cash Flow Portfolio’s certificates of deposit and other deposits in state financial
institutions in excess of depository insurance must be 100% collateralized. Collateral is valued at the lower of cost or
market as reported in the quarterly call reports prepared by the qualified public depositories pursuant to SDCL 4-6A-7.
Collateral is required to be segregated by each depository as approved by the South Dakota Public Deposit Protection
Commission. Collateral may not be held in any safety deposit vault owned or controlled either directly or indirectly by
the pledging financial institution, but must be deposited for safekeeping in a financial institution that is a member of the
Federal Reserve. As of June 30, 2020, pledged collateral for one depository did not equal at least 100% of the total
public deposits in excess of depository insurance. As a result, $0.1 million thousand of the Cash Flow portfolio’s
certificates of deposit was exposed to custodial credit risk.
The Retirement Portfolio has a formal deposit policy specific to custodial credit risk and foreign currencies. The policy
states that the United States Dollar (USD) equivalent of any non-USD currency cannot exceed 2.0% of the portfolio fair
value on a trade date +7 days basis. At June 30, 2020, the Retirement Portfolio had bank balances in foreign currencies
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in various foreign countries. These deposits are not collateralized or covered by depository insurance. As a result, the
Retirement Portfolio was exposed to custodial credit risk of $7.3 million.
The Trust Portfolios have a formal deposit policy specific to custodial credit risk. The policy states that the USD
equivalent of any non-USD currency cannot exceed 2.0% of the portfolio fair value on a trade date +5 calendar day
basis. At June 30, 2020, the Trust Portfolios had bank balances in various foreign currencies. These deposits are not
collateralized or covered by depository insurance. As a result, the Trust Portfolios were exposed to custodial credit risk
of $0.8 million.
The Other Funds have no formal deposit policy specific to custodial credit risk. At June 30, 2020, the Other Funds had
bank balances that are not collateralized or covered by depository insurance. As a result, the Other Funds were exposed
to custodial credit risk of $0.1 million.
Investments
Securities Lending. State statutes and SDIC policies permit the use of investments for securities lending
transactions. These transactions involve the lending of corporate debt, foreign equity securities, and domestic equity
securities to broker-dealers for collateral in the form of securities, with the simultaneous agreement to return the
collateral for the same securities in the future. All securities loans can be terminated on demand by either the SDIC or
the borrower. As of June 30, 2020, the fair value of securities on loan was $211.1 million, and the collateral held on the
same date was $216.3 million. At year-end, the SDIC has no credit risk exposure to borrowers because the amounts
the SDIC owes the borrowers exceed the amounts the borrowers owe the SDIC.
The SDIC’s securities custodian is an agent in lending securities and shall accept only U.S. Government securities or
its agencies as collateral for any loan or loaned securities. The collateral required must equal 102% of fair value plus
accrued interest for corporate debt securities, 102% of fair value for U.S. equity securities, and 105% of fair value for
foreign securities except in the case of loans of foreign securities which are denominated and payable in USD, in which
event the collateral required is 102% of fair value. The earnings generated from the collateral investments results in the
gross earnings from lending activities, which is then split on a percentage basis with the lending agent.
The contract with the lending agent requires the agent to indemnify the SDIC if the borrowers fail to return the loaned
securities and the collateral is inadequate to replace the securities lent. The SDIC does not have the ability to pledge
or sell collateral securities unless the borrower defaults, therefore no asset and corresponding liability for the collateral
value of securities received has been established on the Statement of Net Position. Regarding restrictions on loans, the
securities lending agreement does limit the total value of securities that can be out on loan on any given day.
Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities
that are in the possession of an outside party. SDIC securities lending policies are detailed in the preceding Securities
Lending section. As of June 30, 2020, the SDIC does not have custodial credit risk with regards to security lending
collateral. The Other Funds do not have a policy for custodial credit risk. The Other Funds had custodial credit risk
totaling $196.0 million in guaranteed investment contracts, Federal agency bonds, U.S. Treasury bonds, and U.S.
Treasury notes not held in their name at June 30, 2020.
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. SDIC policy limits or establishes ranges for the durations of the fixed income portfolios held by the
various funds.
The Cash Flow Portfolio short term portfolio policy limits average portfolio duration to 2.88 years, and no holding’s
maturity can exceed 5.25 years. The Retirement Portfolio fixed income portfolio duration must fall between 70% and
130% of the duration of the FTSE US Broad Investment Grade (BIG) Index. The Cash Flow Portfolio intermediate term
portfolio and the Trust Portfolios investment-grade fixed income portfolios are benchmarked to the duration of the FTSE
BIG Index. No formal interest rate risk policy exists for the fixed income portfolios of the Other Funds.
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The weighted modified durations (in years) of the various funds are listed in the following table (Dollars Expressed in
Thousands):
Cash Flow Portfolio Retirement Portfolio Trust Portfolios Other Funds
Mod. Mod. Mod. Mod.
Investment Type Fair Value Dur. Fair Value Dur. Fair Value Dur. Fair Value Dur.
U.S. Treasuries $ 16,097 3.43 $ $ $ 27,810 0.19
U.S. Treasury Bills 339,146 0.24 8,064 0.45
U.S. Treasury STRIPS 113,005 9.29 385,145 9.29 64,506 9.29
U.S. Agencies 332,188 2.78 36,331 6.66 6,084 6.66 2,006 0.43
Investment Grade Corporates 677,038 2.46 441,064 4.26 69,308 4.23
High-yield Corporates 9,803 1.81 399,539 3.34 1,702 1.22
High-yield Bond Mutual Fund 55,865 3.90
Agency Mortgage-backed Securities 96,595 2.55 336,056 2.99 56,939 2.94
Non-agency Mortgage-backed Securities 777,464 0.67 73,381 0.69
Municipal Bonds 43,291 5.08
Investment Agreements 145,934 6.27
Total $ 1,244,726 $ 2,714,745 $ 379,140 $ 175,750
Portfolio Modified Duration 3.18 3.18 4.21 5.24
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations to
the State of South Dakota. SDIC policy establishes a percentage range and a normal allocation to various credit risk
categories. The Cash Flow Portfolio short term portfolio can invest 4% of the portfolio into each corporate security rated
Aaa or Aa, 3% in A-rated, 1% in Baa1 or Baa2, and 0.5% in Baa3 rated individual holdings of corporate securities.
Credit rating limits are 15% of the total short-term portfolio or up to 20% with the Investment Officer’s permission for
Baa-rated and 5% of the total portfolio or up to 10% with the Investment Officer’s permission on downgraded securities
below Baa. The SDIC sets the investment policy annually for the Cash Flow Portfolio intermediate term portfolio, Trust
Portfolios, and the Retirement Portfolio. This policy establishes the benchmark percentage invested in each asset
category and the minimum and maximum range of each asset category.
The Clean Water State Revolving Fund and Drinking Water State Revolving Fund Master Trust Indenture requires any
investment agreement to be with a guarantor whose long-term rating category is no lower than the two highest long-
term rating categories.
Statutes authorize the Vocational Education Program to invest in the following: (1) direct obligations of the U.S.; (2)
obligations issued by any agency or instrumentality of the U.S.; (3) certificates of deposit or time deposits of any bank
which is a qualified public depository or any savings and loan association which is a savings and loan depository; (4)
obligations of any solvent insurance company or other corporation existing under the laws of the U.S., or any state
thereof provided the company or corporation is rated in one of the two highest rating classifications established by a
standard rating service of insurance companies or a nationally recognized rating agency; (5) short-term discount
obligations of the FNMA; or (6) obligations issued by any state of the U.S.
The Education Enhancement Funding Corporation does not have a formal policy on investment credit risk.
As of June 30, 2020, the portfolios held the following investments, excluding those issued by or explicitly guaranteed
by the U.S. Government which are not considered to have credit risk. The investments are grouped as rated by Moody’s
Investors Service (Expressed in Thousands):
Cash Flow Retirement Trust Other
Portfolio Portfolios Portfolios Funds
Moody’s Rating Fair Value Fair Value Fair Value Fair Value
Aaa $ 1,778,265 $ 2,356,748 $ 551,639 $ 2,113
Aa 128,502 132,463 37,595
A 440,974 149,011 38,141
Baa 89,678 199,511 29,002 145,934
Ba 9,803 190,973 3,986
B 265,029 9,169
Caa 182,513 13,181
Ca 161,707 13,983
C 22,621 1,967
Unrated 289,591 90,288
Total $ 2,447,222 $ 3,950,167 $ 788,951 $ 148,047
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Foreign Currency Risk. Foreign currency risk is the risk that changes in exchange rates will adversely impact the
fair value of an investment. The Retirement and Trust Portfolios’ exposure to foreign currency risk is derived from their
positions in foreign currency and foreign currency-denominated equity investments. The Retirement and Trust Portfolios
do not hedge foreign currency back to USD (to match the unhedged benchmark) but do allow hedging under certain
circumstances when deemed appropriate by the State Investment Officer and portfolio manager.
The Retirement and Trust Portfolios’ exposure to foreign currency risk at June 30, 2020, are as follows (Expressed in
Thousands):
Retirement Portfolio Trust Portfolios
Equities Cash Equities Cash
U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar
Currency Fair Value Fair Value Total Fair Value Fair Value Total
Australian Dollar $ 13,771 $ 275 $ 14,046 $ 901 $ 194 $ 1,095
British Pound 145,831 1,566 147,397 10,110 37 10,147
Canadian Dollar 54,560 947 55,507 3,599 119 3,718
Danish Kroner 11,541 13 11,554 735 735
Euro 349,806 2,120 351,926 23,817 34 23,851
Hong Kong Dollar 10,880 69 10,949 600 254 854
Japanese Yen 169,405 2,264 171,669 11,160 130 11,290
South Korean Won 75,307 75,307 4,963 4,963
Norwegian Krone 1,080 16 1,096 73 34 107
Singapore Dollar 1,193 1,193 0
Swedish Krona 6,726 6,726 507 507
Swiss Franc 171,227 171,227 11,623 11,623
Thai Baht 1,156 1,156 0
Total Fair Value $1,012,483 $ 7,270 $ 1,019,753 $ 68,088 $ 802 $ 68,890
Investments with limited partnerships and certain global equity investments with outside managers, which are not
included in the table above, may expose the State to additional foreign currency risk. For the Trust Portfolios, the total
fair value of investments in real estate and private equity limited partnerships as of June 30, 2020, was $212.2 million.
For the Retirement Portfolio, the total fair value of investments in real estate and private equity limited partnerships as
of June 30, 2020, was $2.2 billion. The total fair value of global equity investments and high-yield fixed income
investments managed by outside managers was $55.9 million and $3.3 million, respectively.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss that may be attributed to the magnitude
of a government’s investment in a single issuer. The Cash Flow Portfolio has a policy in place limiting its investments
in individual holdings. Information regarding the Cash Flow Portfolio policy is located in the Credit Risk section. The
SDIC does not have a formal policy in place to limit investments in any particular issuer for the Retirement Portfolio and
Trust Portfolios. Additionally, there are no single issuer exposures (excluding those issued by or explicitly guaranteed
by the U.S. Government, or involving mutual funds or investment pools) within the portfolios that comprise 5% of the
overall portfolios at June 30, 2020.
Derivative Financial Instruments in Primary Government
Retirement Portfolio and Trust Portfolios. Derivatives are generally defined as a contract whose values
depend on, or derive from, the value of an underlying asset, reference rate or index. The Retirement Portfolio is exposed
to a variety of derivative products through the investment management of the SDIC and their outside managers. The
Trust Portfolios utilized no derivative instruments in SDIC’s internally managed portfolios, but may be exposed to a
variety of derivative products through their outside managers. The following notes detail the derivative instruments used
in the SDIC’s internally managed portfolios. All of SDIC’s derivatives are classified as investment derivatives.
Futures Contracts. A futures contract is a contract to buy or sell units of an index or financial instrument at a
specified future date at a price agreed upon when the contract is originated. The SDIC purchases and sells futures
contracts as a means of adjusting the Retirement Portfolio’s mix at a lower transaction cost than the transactions, which
would otherwise occur in the underlying portfolios. During fiscal year ended June 30, 2020, S&P 500 futures and 10-
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year U.S. Treasury note futures were utilized. Upon entering into such a contract, SDIC pledges to the broker cash or
U.S. government securities equal to the minimum initial margin requirement of the futures exchange. Additionally, the
portfolio receives or pays a daily variation margin, which is an amount of cash equal to the daily fluctuation in value of
the contract. The change in fair value of the futures contracts is presented in the Statement of Changes in Net Position
as “Net appreciation in fair value of investments.” The net change in fair value from futures contracts for fiscal year
ended June 30, 2020, was $454.3 million.
At June 30, 2020, futures contracts outstanding were as follows:
Notional Fair Value
Open Position Contracts
Contract size (Exposure)
U.S. Treasury Note Future Due September 2020 Long 4,325 $100,000 par $ 370,893,047
value 6% U.S.
Treasury note
S&P 500 Index Future Due September 2020 Short 13,436 $ (2,076,029,950)
Foreign Currency Forward Contracts. The SDIC enters into foreign exchange forward contracts to manage
foreign currency exposure, as permitted by portfolio policies. The fair values of the contracts are presented in the
Statement of Net Position as “Investments at fair value – Equities.” The change in fair value of the forward contracts is
presented in the Statement of Changes in Net Position as “Net appreciation in fair value of investments.” For fiscal year
ended June 30, 2020, the net change in fair value from foreign currency forward contracts was $0.4 million. At June 30,
2020, the foreign currency forward contracts outstanding were as follows:
Maturity Fair Value
Description Notional Amount Date (U.S. Dollars)
Forward Sale $ (4,247,124) CHF 08/05/2020 $ (59,821)
Credit Risk. SDRS is exposed to credit risk on derivative instruments that are in asset positions. The SDIC attempts
to minimize credit risk by entering into derivatives contracts with major financial institutions. At June 30, 2020, the net
fair value of foreign currency forward contracts was $0. This represents the maximum loss that would be recognized at
the reporting date if all counterparties failed to perform as contracted.
Interest Rate Risk. The SDRS is exposed to interest rate risk on its 10-year U.S. Treasury Note futures contract.
As interest rates increase, the value of the futures contract decreases.
Foreign Currency Risk. SDRS is exposed to foreign currency risk on its foreign currency forward contacts because
they are denominated in foreign currencies. The net fair value of the foreign currency forward contracts in USD is ($0.1
million).
Fair Value Measurement
Investments are reported at fair value as of June 30, 2020 to the extent available. GASB Statement No. 72- Fair Value
Measurement and Application, defines fair value as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. This statement establishes a
hierarchy of valuation inputs based on the extent to which the inputs are observable in the marketplace. Level 1 inputs
are quoted prices in active markets for identical assets; Level 2 inputs are other than quoted prices included within Level
1 that are observable; Level 3 inputs are significant unobservable inputs. Investments that are measured at fair value
using the net asset value per share (or its equivalent) as a practical expedient are not classified in the hierarchy below.
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The following tables summarize the Cash Flow Portfolio, Retirement Portfolio, Trust Portfolios, and Other Funds
investments within the fair value hierarchy as of June 30, 2020, (Expressed in Thousands):
Cash Flow Portfolio:
Cash Flow Fund Portfolio
Total Level 1 Level 2 Level 3
Investments by Fair Value Level
U.S. Treasuries $ 16,097 $ $ 16,097 $
U.S. Treasury STRIPS 113,005 113,005
U.S. Agencies 332,188 332,188
Investment Grade Corporates 677,038 677,038
High Yield Corporates 9,803 9,803
Agency Mortgage-backed Securities 96,595 96,595
Total Fixed Income Securities 1,244,726 0 1,244,726 0
Total Investments by Fair Value Level 1,244,726 $ 0 $ 1,244,726 $ 0
Investments Measured at the Net Asset Value (NAV)
Short-term Investment Funds 1,428,193
Total Investments Measured at the NAV 1,428,193
Total Investments Measured at the Fair Value $ 2,672,919
Retirement Portfolio:
Retirement Portfolio
Total Level 1 Level 2 Level 3
Investments by Fair Value Level
Fixed Income Securities
U.S. Treasury Bills $ 339,146 $ $ 339,146 $
U.S. Treasury STRIPS 385,146 385,146
U.S. Agencies 36,331 36,331
Investment Grade Corporates 441,064 441,064
High Yield Corporates 399,539 399,539
Agency Mortgage-backed Securities 336,056 336,056
Non-Agency Mortgage-backed Securities 777,464 777,464
Total Fixed Income Securities 2,714,746 0 2,714,746 0
Equity Securities
Domestic Stock 3,440,603 3,440,557 46
Depository Receipts 58,764 58,764
ETF - Exchange Traded Funds 588,404 588,404
International Stock 1,012,483 1,012,483
Stock Rights 1,625 1,625
Stock Warrants 60 60
Total Equity Securities 5,101,939 5,101,893 46 0
Total Investments by Fair Value Level 7,816,685 $ 5,101,893 $ 2,714,792 $ 0
Investments Measured at the Net Asset Value (NAV)
Short-term Investment Funds 2,049,158
Emerging Markets Small Cap Equity Mutual Funds 55,882
Multi Strategy Hedge Funds 80,893
Alternative Investments
Real Estate Funds 1,245,733
Private Equity Funds 1,002,965
Other Funds 3,288
Total Alternative Investments 2,251,986
Total Investments Measured at the NAV 4,437,919
Total Investments Measured at the Fair Value 12,254,604
Plus: Cash Held by Fund Managers 7,437
Less: G/L on FX Transactions (60)
Plus: Accrued Interest Purchased 932
Less: Accrued Monthly Interest (192)
Total $ 12,262,721
Investment Derivative Instruments
Foreign Exchange Forward Contracts $ (60) $ $ (60)
Total Investment Derivative Instruments $ (60) $ 0 $ (60)
66
Trust Portfolios:
Trust Portfolios
Total Level 1 Level 2 Level 3
Investments by Fair Value Level
Fixed Income Securities
U.S. Treasury Bills $ 8,064 $ $ 8,064 $
U.S. Treasury STRIPS 64,506 64,506
U.S. Agencies 6,084 6,084
Investment Grade Corporates 69,308 69,308
High Yield Corporates 1,702 1,702
Agency Mortgage-backed Securities 56,939 56,939
Non-Agency Mortgage-backed Securities 73,381 73,381
Municipal Bonds 43,291 43,291
Total Fixed Income Securities 323,275 0 323,275 0
Equity Securities
Domestic Stock 228,346 228,346
Depository Receipts 3,276 3,276
ETF - Exchange Traded Funds 51,238 51,238
International Stock 68,088 68,088
Stock Rights 119 119
Total Equity Securities 351,067 351,067 0 0
Total Investments by Fair Value Level 674,342 $ 351,067 $ 323,275 $ 0
Investments Measured at the Net Asset Value (NAV)
Short-term Investment Funds 497,658
High Yield Bond Mutual Funds 55,865
Alternative Investments
Real Estate Funds 125,482
Private Equity Funds 86,564
Other Funds 199
Total Alternative Investments 212,245
Total Investments Measured at the NAV 765,768
Total Investments Measured at the Fair Value $ 1,440,110
Other Funds:
Other Funds
Total Level 1 Level 2 Level 3
Investments by Fair Value Level
U.S. Treasuries $ 48,018 $ $ 48,018 $
U.S. Agencies 2,006 2,006
Total Fixed Income Securities 50,024 0 50,024 0
Total Investments by Fair Value Level $ 50,024 $ 0 $ 50,024 $ 0
67
Equity securities classified in Level 1 of the fair value hierarchy are valued using quoted prices in active markets for
identical securities as of the measurement date as issued by pricing vendors.
Equity securities classified in Level 2 of the fair value hierarchy are valued using a quoted price for a similar security in
an active market, and valuations from various pricing vendors/brokers using observable inputs other than quoted prices
for identical securities. Fixed income securities classified in Level 2 of the fair value hierarchy are valued using
observable inputs other than quoted prices for identical securities. Debt securities classified in Level 2 of the fair value
hierarchy are valued using observable inputs other than quoted prices for identical securities. The prices are determined
by the use of matrix pricing techniques maintained by the various pricing vendors for these securities. Matrix pricing is
used to value securities based on the securities' relationship to benchmark quoted prices.
In the Retirement Portfolio, derivative instruments classified in Level 2 of the fair value hierarchy are valued using
observable inputs other than quoted prices for identical securities. The foreign currency forward contract valuations are
determined by interpolating FX rates for various settlement dates as of June 30, 2020.
In the Retirement Portfolio, real estate funds classified in Level 3 of the fair value hierarchy are real estate alternative
investments that invest primarily in overseas commercial real estate. These are investments which quoted prices are
not readily available and are valued at estimated values as determined by the General Partner (GP). Investments are
valued by the GP using one or more valuation methodologies with reference to the International Private Equity and
Venture Capital Valuation Guidelines. The estimated fair values are subjective and based on judgment.
In the Trust Portfolios, the Other Fund classified in Level 3 of the fair value hierarchy is valued at zero. It is an investment
in an alternative investment fund that invested in distressed and defaulted debt securities and equities of financially
troubled companies. All positions in the fund have been liquidated and only cash remains. The fund holds contingent
liabilities that offset cash. Due to the highly questionable outcome of the contingent liabilities it has been determined
that a value of zero best reflects the fair value considering the information available as of June 30, 2020.
The portfolios may hold shares or interests in investments where the fair value of the investments are measured on a
recurring basis using net asset value per share (or its equivalent) of the investment as a practical expedient. The NAV
valuations are based on valuations of the underlying companies as determined and reported by the fund manager or
general partner.
Continued on next page
68
The following table summarizes the fair value, unfunded commitments, and redemption rules of those investments as
of June 30, 2020, (Expressed in Thousands):
Investments Measured at the NAV
Cash Flow Fund Portfolio
Redemption Redemption
Unfunded Frequency (if Notice
Fair Value Commitments currently eligible) Period
Short-term Investment Funds (a) $ 1,428,193 $ Daily 0 days
Investments Measured at the Net
Asset Value (NAV) $ 1,428,193
Investments Measured at the NAV
Trust Portfolios
Redemption Redemption
Unfunded Frequency (if Notice
Fair Value Commitments currently eligible) Period
Short-term Investment Funds (a) $ 497,659 $ Daily 0 days
High Yield Bond Mutual Funds (b) 55,865 Daily 1 day
Alternative Investments
Real Estate Funds (c) 125,482 112,538
Private Equity Funds (d) 86,564 35,996
Other Funds (e) 199
Total Alternative Investments 212,245
Investments
InvestmentsMeasured
Measuredatathe
theNet
Net
Asset Value (NAV) $ 765,769
Investments Measured at the NAV
Retirement Portfolio
Redemption Redemption
Unfunded Frequency (if Notice
Fair Value Commitments currently eligible) Period
Short-term Investment Funds (a) $ 2,049,158 $ Daily 0 days
Mutual Funds (f) 55,882 Daily 1 day
Multi Strategy Hedge Funds (g) 80,893 Monthly 5-30 days
Alternative Investments
Real Estate Funds (c) 1,245,733 1,166,195
Private Equity Funds (d) 1,002,965 508,506
Other Funds (e) 3,288
Total Alternative Investments 2,251,986
Investments Measured at the Net
Asset Value (NAV) $ 4,437,919
a. Short Term Investment Funds. This type includes investments in open-end mutual funds that invest exclusively in
high-quality, short-term securities that are issued or guaranteed by the U.S. government or by U.S. government
agencies and instrumentalities. The fair value of the investment in this type has been determined using the NAV per
share of the investment.
b. High Yield Bond Mutual Funds. This type includes an investment in one open-end mutual fund that invests mainly in
a diversified group of high-yielding, higher risk corporate bonds with medium and lower range credit-quality ratings. The
fair value of the investment in this type has been determined using the NAV per share of the investment.
c. Real Estate Funds. This type includes 17 (Trust Portfolios) and 26 (Retirement Portfolio) real estate funds that invest
primarily in commercial real estate. The fair values of the investments in this type have been determined using the NAV
per share (or its equivalent) of the portfolio's ownership interest in partners' capital. These investments can never be
redeemed from the funds. Distributions from each fund will be received as the underlying investments of the funds are
liquidated. It is expected that the underlying assets of the funds will be liquidated over the next 20 years. Because it is
not probable that any individual investment will be sold, the fair value of each individual investment has been determined
using the NAV per share (or its equivalent) of the portfolio's ownership interest in partners' capital.
69
d. Private Equity Funds. This type includes 12 (Trust Portfolios) and 35 (Retirement Portfolio) private equity funds that
invest primarily in leveraged buyouts. The fair values of the investments in this type have been determined using the
NAV per share (or its equivalent) of the portfolio's ownership interest in partners' capital. These investments can never
be redeemed from the funds. Distributions from each fund will be received as the underlying investments of the funds
are liquidated. It is expected that the underlying assets of the funds will be liquidated over the next 20 years. Because
it is not probable that any individual investment will be sold, the fair value of each individual investment has been
determined using the NAV per share (or its equivalent) of the portfolio's ownership interest in partners' capital.
e. Other Funds. This type includes 2 other alternative investments that invest primarily in a broad range of debt, debt-
related, and real estate-related investments. The fair values of the investment has been determined using the NAV per
share (or its equivalent) of the portfolio's ownership interest in partners' capital. These investments can never be
redeemed from the fund. Distributions from each fund will be received as the underlying investments of the funds are
liquidated. It is expected that the underlying assets of the funds will be liquidated over the next 2 years. Because it is
not probable that any individual investment will be sold, the fair value of each individual investment has been determined
using the NAV per share (or its equivalent) of the portfolio's ownership interest in partners' capital.
f. Emerging Markets Small Cap Equity Mutual Funds. This type included one investment in an open-end mutual fund
that emphasizes broad diversification and consistent exposure to emerging market small company stocks. The fair
value of the investment in this type has been determined using the NAV per share of the investment.
g. Multi Strategy Hedge Funds. This type includes two investments in funds that may invest in a wide range of asset
classes in order to meet fund objectives. The fair values of the investments in this type have been determined using the
NAV per share of the investments.
B. Component Units
Deposits
Custodial Credit Risk. Custodial credit risk is the risk that, in the event of the failure of a depository institution, the
component unit’s deposits may not be returned to it. The Housing Development Authority deposit policy requires
deposits in excess of the depository insurance maximums be collateralized 100%. Collateral must be deposited for
safekeeping in a financial institution that is not owned or controlled either directly or indirectly by the pledging financial
institution. The financial institution where the collateral is held must be a member of the Federal Reserve. The additional
component units do not have deposit policies for custodial credit risk. As of June 30, 2020, the component units had no
deposits that were not collateralized or covered by depository insurance.
Investments
Custodial Credit Risk. Custodial credit risk is the risk that in the event of the failure of the counterparty, the
component unit will not be able to recover the value of its investments or collateral securities that are in the possession
of an outside party. The component units do not have investment policies for custodial credit risk. At June 30, 2020,
investments in the amount of $3.8 million were uninsured and unregistered, with the securities held by the counterparty,
or by its trust department or agent, but not in the component unit’s name.
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. The Housing Development Authority has limits on the maturities of investments for their restricted
accounts. Investments of the Capital Reserve accounts must provide for the purposes thereof as estimated by the
Housing Development Authority. The investments must not mature later than the final maturity of the related Series of
the Bonds. The average duration of individual securities will not exceed twenty years. Investments of the Mortgage
Reserve accounts must provide for the purposes thereof as estimated by the Housing Development Authority. The
duration of 50% of individual securities will not exceed two years from the date of purchase or deposit. The Housing
Development Authority assumes that its callable investments will not be called. The Housing Development Authority
invests in mortgage pass-through securities issued by GNMA, FNMA, and FHLMC. Because prepayments of mortgages
underlying these securities affect the principal and interest payments received by these securities, the securities are
considered highly sensitive to interest rate risk.
The Economic Development Finance Authority limits the maturities of investments for its restricted accounts (all
accounts other than the General Account) to terms of two years or less from the date of the investment.
70
The Ellsworth Development Authority and the Science and Technology Authority do not have policies for interest rate
risk.
As of June 30, 2020, the Housing Development Authority and the Economic Development Finance Authority had
investments maturing as follows (Expressed in Thousands):
Investment Maturities (in Years)
Greater
Investment Type Fair Value Less than 1 1 to 5 6 to 10 than 10
U.S. Government Obligations $ 91,610 $ 10,247 $ 51,968 $ 29,395 $
U.S. Treasury Notes 434 403 31
U.S. Agencies 1,144,323 1,363 61,977 17,797 1,063,186
Investment Grade Corporates 764 22 736 6
Certificates of Deposit 10,927 6,370 4,557
Mutual Funds 240,374 240,374
Municipal Bonds 453 70 383
State Obligations 3,030 2,501 529
Total $ 1,491,915 $ 258,827 $ 121,439 $ 48,457 $ 1,063,192
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. It
is the investment policy of the Housing Development Authority to invest in securities limited to direct general obligations
of the U.S. Government, U.S. Government agencies, mortgage backed securities guaranteed by U.S. Government
agencies, direct and general obligations of any state within the United States, mutual funds invested in securities
mentioned above, and investment agreements secured by securities mentioned above. If securities are downgraded
after purchase, the Authority will analyze the reason for the downgrade and determine what, if any, action is needed.
Investments issued by or explicitly guaranteed by the U.S. Government are not considered to have a credit risk.
The investment management policy of the Economic Development Finance Authority limits investments in Corporate
Bonds to those rated in either of the two highest rating categories by either Moody’s Investors Service or Standard &
Poor’s Corporation.
The Ellsworth Development Authority and the Science and Technology Authority are limited to investments permitted
by State statue.
As of June 30, 2020, the Economic Development Finance Authority investments had the following ratings:
Moody’s Rating Fair Value
Aa $ 388,330
Aaa 107,578
Total Fair Value $ 495,908
As of June 30, 2020, the Housing Development Authority investments had the following ratings (Dollars Expressed in
Thousands):
Moody's % of
Type/Provider Credit Rating Amount Total
Money Market Funds NR $ 240,374 16.2%
Certificates of Deposit NR 6,687 0.4%
Corporate-Backed Obligations NR 764 0.1%
U.S. Agencies Aaa 19,497 1.3%
U.S. Treasuries Aaa 91,610 6.2%
State and Municipal Securities A1 to Aaa 3,030 0.2%
Mortgage-backed Securities:
GNMA NR 706,507 47.5%
FNMA NR 398,044 26.8%
FHLMC NR 20,274 1.4%
$ 1,486,787 100.0%
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Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a
government’s investment in a single issuer.
The Housing Development Authority will minimize Concentration Credit Risk by diversifying the investment portfolio and
reducing the impact of potential losses from any one type of security or issuer. (See above table for investment
diversification.)
As of June 30, 2020, the Economic Development Finance Authority permits the maximum portfolio exposure to
permitted investments:
Restricted Account Unrestricted Account
Portfolio Exposure Portfolio Exposure
Total Individual Total Individual
U.S. Governments 100% 100% 100% 100%
U.S. Agencies 100% 100% 100% 100%
Repurchase Agreements 50% 25% 50% 25%
Corporate Bonds 0% 0% 50% 10%
Municipal Bonds 0% 0% 50% 10%
Certificates of Deposit 100% 100% 100% 100%
Money Market Funds 25% 25% 25% 25%
Hedging Derivative Financial Instruments in Component Units
South Dakota Housing Development Authority
The Authority has entered into interest rate swap agreements in connection with issuing variable rate mortgage revenue
bonds. The intentions of the swaps are to create synthetic fixed rate debt at a lower interest rate than achievable from
long-term fixed rate bonds and to achieve the Authority’s goal of lending to low and moderate-income first-time home
buyers at below market fixed interest rates.
Swap Terms. The terms, including the fair values and counterparty credit ratings of the outstanding swaps as of June
30, 2020, are contained in the table below. The initial notional amounts of the swaps match the principal amounts of the
associated debt. The Authority has purchased the right to terminate the outstanding swap balances at par value on
dates that are generally 10 years after the date of issuance of the related bonds (Dollars Expressed in Thousands).
Current Counterparty
Notional Effective Fixed Variable Rate Termination Credit Fair
Bond Series Amount Date Payable Rate Received Date Rating* Value
Wells Fargo Bank
2015 E-1 $ 25,000 12/17/2015 2.11% 66.4% of LIBOR 11/01/2037 Aa1 $ (2,002)
plus 0.22%
2015 E-2 25,000 12/17/2015 66.4% of LIBOR 22yr MMD 11/01/2037 Aa1 97
plus 0.22% plus 0.87%
2016 E-1 50,000 11/01/2016 2.21% 66.4% of LIBOR 05/01/2037 Aa1 (4,667)
plus 0.23%
2016 E-2 50,000 11/01/2016 66.4% of 1M LIBOR 21yr MMD 05/01/2037 Aa1 234
plus 0.23% plus 0.95%
Bank of New York Mellon
2020 B 02/12/2020 1.6525% 100% SIFMA 11/01/2041 Aa1 (2,733)
* Moody's Investors Service
72
The fair values presented on the above table were estimated by the Housing Development Authority’s counterparty to
the swaps. The valuation was determined by calculating the difference between the present values of each fixed cash
flow to be paid and each floating cash flow to be received by the Authority based upon the current market yield curve.
The present value factors for each cash flow are based on the implied zero coupon yield curve determined by current
market rates. Additionally, the values of the call options are determined by calculating the present value of each
predicted option outcome, whose interest rate prediction variance is determined by current market implied volatility.
Together these calculations, along with consideration for non-performance risk, determine the current fair value of the
Authority’s swap contracts. The fair values in the previous table represent the termination payments that would have
been due had the swaps been terminated as of June 30, 2020. A positive fair value represents money due to the
Authority by the counterparty upon termination of the swap, while a negative fair value represents money payable by
the Authority.
Swap Risks
Credit Risk. The terms of the swaps expose the Housing Development Authority to potential credit risk with the
counterparty upon the occurrence of a termination event. The fair value of a swap represents the Authority’s current
credit exposure to the counterparty with which the swaps were executed. The Authority has credit risk exposure to its
counterparties when the swap positions have a positive value. Several of the swap agreements require that, upon
demand, a party post collateral to secure its obligation to make a termination payment to the extent the fair value
exceeds a collateral threshold specified in the agreement. The collateral thresholds are based on the prevailing ratings,
as determined by Moody’s and Standard & Poor’s, of each counterparty, in the case of the counterparties, or hedged
bonds, in the case of the Authority. These bilateral requirements are established to mitigate potential credit risk
exposure. As of June 30, 2020, neither the Authority nor any counterparty had been required to post collateral.
Basis Risk. The Authority incurs the potential risk that the variable interest payments on its bonds will not equal the
variable interest receipts from its swaps. This basis risk exists because the Authority pays the actual variable rate on its
bonds, but under the terms of its swaps receives a variable rate based upon the one-month, taxable LIBOR rate. Basis
risk will vary over time due to inter-market conditions. For the year ended June 30, 2020, the weighted average interest
rate on the Authority’s variable rate debt associated with swaps was 1.18% per annum, while the weighted average
interest rate on the swaps was 1.28% per annum. In order to reduce the cumulative effects of basis risk, the variable
rate determination structure for interest receipts within the swap is based upon a regression analysis of the long-term
relationship between variable tax exempt rates and the applicable swap index.
Termination Risk. The Authority’s swap contracts are based upon the International Swap Dealers Association
Master Agreement, which includes standard termination events. The swap contracts may be terminated by either party
if the other party fails to perform under the terms of the contract. Upon termination, a payment is due to one party
irrespective of causality based upon the fair value of the swap. The potential termination risks to the Authority are the
liability for a termination payment to the counterparty or the inability to replace the swap under favorable financial terms.
To reduce the Authority’s termination risk, the swap contracts limit the counterparty’s ability to terminate due to the
following Authority actions or events: payment default, other defaults that remain uncured for 30 days after notice,
bankruptcy and insolvency.
Amortization Risk. The Authority may incur amortization risk because prepayments from the mortgage loan portfolio
may cause the outstanding amount of variable rate bonds to decline faster than the amortization of the swap. To
ameliorate amortization risk, call options were structured within the swaps to enable the Authority to manage the
outstanding balances of variable rate bonds and notional swap amounts. Additionally, the Authority may terminate the
swaps at market value at any time.
Tax Risk. The structure of the variable interest rate payments the Authority receives from its swap contracts are based
upon the historical long-term relationship between taxable and tax-exempt short-term interest rates. Tax risk represents
a risk that may arise due to a change in the tax code that may fundamentally alter this relationship. The Authority has
chosen to assume this risk because it was not economically feasible to transfer to the swap counterparty.
Concentration Risk. The total outstanding bonds associated with swaps will be limited to 30% of the total of all
outstanding bonds under the related indenture at the time bonds associated with swaps are issued. The total
outstanding notional amount of swaps with a single counterparty will not exceed $150.0 million.
73
Swap Payments and Associated Debt. As rates vary, variable-rate bond interest payments and net swap
payments will vary. Debt service requirements of the variable-rate debt and net swap payments, assuming current
interest rates remain the same for their term, were as follows using rates as of June 30, 2020, (Expressed in
Thousands):
Year-end Variable-rate Bond Interest Rate
June 30 Principal Interest Swap – Net Total
2021 $ $ 1,845 $ 330 $ 2,175
2022 1,845 330 2,175
2023 1,845 330 2,175
2024 1,846 330 2,176
2025 1,846 330 2,176
2026-2030 12,015 9,039 1,671 22,725
2031-2035 57,165 5,407 1,666 64,238
2036-2040 35,560 655 897 37,112
2041-2045 3,260 3 39 3,302
Total $ 108,000 $ 24,331 $ 5,923 $ 138,254
Rollover Risk. Rollover risk is the risk that a swap associated with a bond issue does not extend to the maturity of
that debt. When the swap terminates, the associated debt will no longer have the benefit of the swap. The Authority did
not have any rollover risk as of June 30, 2020.
Mortgage-Backed Security (MBS) Forwards Contracts
The South Dakota Housing Development Authority has entered into forward contracts to hedge the interest rate risk of
delivering MBS securities guaranteed by Ginnie Mae and Fannie Mae in the future, before the securities are ready for
delivery (referred to as “to-be-announced” or TBA Mortgage-Backed Securities). These securities represent pools of
qualified mortgage loans originated by Authority approved lenders. The forward contracts offset the financial impact to
the Authority of changes in interest rates between the time of loan reservations made to originating mortgage lenders
and the securitization and sale of such loans as Ginnie Mae or Fannie Mae securities. The forward contracts are
considered hedging derivative instruments and the fair values were obtained from an external pricing specialist using
current trade pricing for similar financial instruments in active markets that the Authority has the ability to access. A
positive fair value represents money due to the Authority by the counterparty, while a negative fair value represents
money payable by the Authority.
Continued on Next page
74
Outstanding forward sales contracts as of June 30, 2020, are as follows:
Forward Contracts to Notional Moody's
sell TBA Mortgage- Amount Trade Delivery Coupon Fair Values Credit
Backed Securities June 30 Date Date Rate June 30 Rating
Bank of America Merrill Lynch
FNMA $ 1,600,000 04/15/2020 07/14/2020 2.50% $ (11,250) A2
FNMA 1,200,000 04/17/2020 07/14/2020 2.50% (7,500) A2
FNMA 1,200,000 04/21/2020 07/14/2020 2.50% (12,563) A2
FNMA 1,000,000 04/29/2020 07/14/2020 2.50% (5,000) A2
FNMA 2,400,000 05/05/2020 07/14/2020 2.50% (15,750) A2
GNMA II 4,000,000 05/05/2020 07/21/2020 2.50% (23,750) A2
FNMA 1,200,000 05/07/2020 07/14/2020 2.50% (8,438) A2
GNMA II 1,200,000 05/11/2020 07/21/2020 2.50% (13,313) A2
FNMA 1,200,000 05/15/2020 08/13/2020 2.50% (11,063) A2
GNMA II 1,400,000 05/19/2020 08/20/2020 2.50% (11,813) A2
GNMA II 1,600,000 05/29/2020 08/20/2020 2.50% (9,250) A2
FNMA 2,000,000 06/05/2020 08/13/2020 2.50% (24,063) A2
FNMA 5,200,000 06/08/2020 07/14/2020 2.50% (46,313) A2
FNMA 1,200,000 06/09/2020 08/13/2020 2.50% (7,875) A2
FNMA 1,000,000 06/11/2020 09/14/2020 2.50% (1,406) A2
GNMA II 4,500,000 06/17/2020 07/21/2020 2.50% (18,281) A2
GNMA II 1,400,000 06/17/2020 08/20/2020 2.50% (7,656) A2
FNMA (6,386,000) 06/25/2020 07/14/2020 2.50% 16,963 A2
GNMA II (1,480,000) 06/25/2020 07/21/2020 2.50% 3,006 A2
GNMA II 1,800,000 06/26/2020 09/21/2020 2.50% (5,063) A2
Bank of New York Mellon
GNMA II 2,400,000 04/22/2020 07/21/2020 2.50% (15,750) A1
FNMA 1,400,000 04/27/2020 07/14/2020 2.50% (10,008) A1
GNMA II 1,600,000 04/27/2020 07/21/2020 2.50% (10,500) A1
GNMA II 2,200,000 05/08/2020 07/21/2020 2.50% (18,563) A1
FNMA 1,400,000 05/28/2020 08/13/2020 2.50% (14,000) A1
FNMA 1,000,000 06/03/2020 08/13/2020 2.50% (9,375) A1
GNMA II 1,156,000 06/17/2020 07/21/2020 3.00% (2,529) A1
FNMA (728,000) 06/25/2020 07/14/2020 2.50% 1,593 A1
GNMA II (4,600,000) 06/25/2020 07/21/2020 2.50% 7,906 A1
Bank of Oklahoma
GNMA II 1,000,000 04/23/2020 07/21/2020 2.50% (4,883) A3
FNMA 1,000,000 04/24/2020 07/14/2020 2.50% (6,328) A3
GNMA II 1,200,000 04/24/2020 07/21/2020 2.50% (6,750) A3
GNMA II 1,000,000 04/28/2020 07/21/2020 2.50% (5,313) A3
GNMA II 2,400,000 05/01/2020 07/21/2020 2.50% (10,313) A3
GNMA II 1,000,000 05/04/2020 07/21/2020 2.50% (6,523) A3
GNMA II 1,200,000 05/07/2020 07/21/2020 2.50% (9,141) A3
GNMA II 2,200,000 05/14/2020 07/21/2020 2.50% (17,445) A3
GNMA II 1,200,000 05/18/2020 07/21/2020 2.50% (12,328) A3
GNMA II 1,600,000 05/20/2020 08/20/2020 2.50% (9,625) A3
FNMA 1,000,000 05/21/2020 08/13/2020 2.50% (9,375) A3
GNMA II 2,400,000 06/01/2020 08/20/2020 2.50% (11,625) A3
FNMA 964,300 06/08/2020 07/14/2020 2.50% (8,287) A3
FNMA 752,935 06/08/2020 07/14/2020 3.00% (1,559) A3
GNMA II 1,400,000 06/10/2020 08/20/2020 2.50% (4,102) A3
FNMA 2,200,000 06/10/2020 09/14/2020 2.50% (11,602) A3
FNMA 1,000,000 06/15/2020 09/14/2020 2.50% (4,688) A3
GNMA II 1,291,000 06/17/2020 07/21/2020 2.50% (5,043) A3
GNMA II 100,000 06/17/2020 07/21/2020 3.00% (168) A3
FNMA 1,000,000 06/17/2020 09/14/2020 2.50% (5,938) A3
GNMA II 1,200,000 06/22/2020 09/21/2020 2.50% (5,766) A3
FNMA 1,800,000 06/24/2020 09/14/2020 2.50% (7,594) A3
FNMA (530,000) 06/25/2020 07/14/2020 2.50% 1,408 A3
GNMA II (4,800,000) 06/25/2020 07/21/2020 2.50% 9,750 A3
GNMA II (6,100,000) 06/25/2020 07/21/2020 2.50% 19,063 A3
Continued on next page
75
Forward Contracts to Notional Moody's
sell TBA Mortgage- Amount Trade Delivery Coupon Fair Values Credit
Backed Securities June 30 Date Date Rate June 30 Rating
Daiwa Capital Markets
GNMA II $ 2,800,000 05/13/2020 07/21/2020 2.50% $ (24,938) Not rated
GNMA II 1,600,000 05/21/2020 08/20/2020 2.50% (11,000) Not rated
GNMA II 1,600,000 05/28/2020 08/20/2020 2.50% (12,250) Not rated
GNMA II 1,400,000 06/09/2020 08/20/2020 2.50% (6,344) Not rated
GNMA II 1,200,000 06/11/2020 08/20/2020 2.50% 1,125 Not rated
GNMA II 1,600,000 06/12/2020 08/20/2020 2.50% (2,000) Not rated
GNMA II 1,200,000 06/17/2020 07/21/2020 3.00% (2,625) Not rated
FNMA 1,800,000 06/22/2020 09/14/2020 2.50% (7,031) Not rated
FNMA 1,200,000 06/23/2020 09/14/2020 2.50% (5,250) Not rated
GNMA II 2,800,000 06/24/2020 09/21/2020 2.50% (15,313) Not rated
GNMA II (1,428,000) 06/25/2020 07/21/2020 2.50% 2,678 Not rated
Jefferies
FNMA 600,000 04/16/2020 07/14/2020 3.50% 4,781 Baa3
GNMA II 1,000,000 04/20/2020 07/21/2020 2.50% (7,656) Baa3
GNMA II 1,600,000 04/29/2020 07/21/2020 2.50% (6,750) Baa3
FNMA 1,200,000 05/01/2020 07/14/2020 2.50% (6,375) Baa3
FNMA 1,600,000 05/12/2020 08/13/2020 2.50% (16,500) Baa3
FNMA 1,400,000 05/13/2020 08/13/2020 2.50% (13,563) Baa3
GNMA II 1,600,000 05/15/2020 07/21/2020 2.50% (13,000) Baa3
FNMA 1,000,000 05/20/2020 08/13/2020 2.50% (9,219) Baa3
FNMA 1,000,000 05/22/2020 08/13/2020 2.50% (10,469) Baa3
GNMA II 1,800,000 05/22/2020 08/20/2020 2.50% (13,781) Baa3
FNMA 1,400,000 05/27/2020 08/13/2020 2.50% (11,484) Baa3
GNMA II 3,600,000 05/27/2020 08/20/2020 2.50% (22,500) Baa3
GNMA II 2,400,000 06/02/2020 08/20/2020 2.50% (10,500) Baa3
GNMA II 3,600,000 06/05/2020 08/20/2020 2.50% (36,000) Baa3
GNMA II 1,400,000 06/15/2020 08/20/2020 2.50% (4,156) Baa3
GNMA II 8,565,000 06/17/2020 07/21/2020 2.50% (36,134) Baa3
GNMA II 1,000,000 06/17/2020 07/21/2020 3.00% (2,188) Baa3
GNMA II 3,800,000 06/19/2020 09/21/2020 2.50% (23,453) Baa3
GNMA II 2,000,000 06/23/2020 09/21/2020 2.50% (10,313) Baa3
FNMA (684,000) 06/25/2020 07/14/2020 2.50% 1,817 Baa3
GNMA II (3,376,000) 06/25/2020 07/21/2020 2.50% 6,858 Baa3
GNMA II 2,000,000 06/25/2020 09/21/2020 2.50% (9,219) Baa3
FNMA 1,000,000 06/29/2020 09/14/2020 2.50% (938) Baa3
GNMA II 2,600,000 06/29/2020 09/21/2020 2.50% (6,094) Baa3
Piper Sandler
GNMA II 500,000 04/28/2020 07/21/2020 3.00% (1,406) Not rated
GNMA II 1,600,000 04/30/2020 07/21/2020 2.50% (5,000) Not rated
FNMA 1,000,000 05/08/2020 07/14/2020 2.50% (7,031) Not rated
GNMA II 2,400,000 05/12/2020 07/21/2020 2.50% (25,875) Not rated
FNMA 2,000,000 05/19/2020 08/13/2020 2.50% (21,563) Not rated
FNMA 1,200,000 06/01/2020 08/13/2020 2.50% (9,375) Not rated
GNMA II 3,200,000 06/03/2020 08/20/2020 2.50% (21,000) Not rated
GNMA II 2,000,000 06/16/2020 08/20/2020 2.50% (7,031) Not rated
GNMA II 1,600,000 06/18/2020 08/20/2020 2.50% (5,500) Not rated
FNMA (410,000) 06/25/2020 07/14/2020 2.50% 961 Not rated
FNMA 1,600,000 06/26/2020 09/14/2020 2.50% (2,741) Not rated
Bank of Montreal
GNMA II (1,100,000) 06/25/2020 07/21/2020 3.00% 3,609 Aa2
Citigroup Global Markets
GNMA II (1,200,000) 06/25/2020 07/21/2020 3.00% 4,125 A1
$ 122,807,235 $ (863,390)
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Fair Value Measurement
Investments are reported at fair value as of June 30, 2020, to the extent available. GASB Statement No. 72- Fair Value
Measurement and Application, defines fair value as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. This statement establishes a
hierarchy of valuation inputs based on the extent to which the inputs are observable in the marketplace. Level 1 inputs
are quoted prices in active markets for identical assets; Level 2 inputs are other than quoted prices included within Level
1 that are observable; Level 3 inputs are significant unobservable inputs.
The following table summarizes the Housing Development Authority and Economic Development Finance Authority
investments within the fair value hierarchy as of June 30, 2020, (Expressed in Thousands):
Total Level 1 Level 2 Level 3
Investments by Fair Value Level
U.S. Treasuries $ 92,043 $ $ 92,043 $
U.S. Agencies 1,144,323 1,144,323
Corporate-Backed Obligations 764 764
Money Market Mutual Funds 240,374 240,374
Municipal Bonds 453 453
Certificates of Deposit 10,927 10,927
State Obligations 3,030 3,030
Total Investments by Fair Value Level $ 1,491,914 $ 240,374 $ 1,251,540 $ 0
Hedging Derivative Instruments
Interest Rate Swaps $ (9,070) $ $ (9,070) $
Forward MBS Contracts (863) (863)
Total Hedging Derivative Instruments $ (9,933) $ 0 $ (9,933) $ 0
For the Economic Development Finance Authority, US Bank serves as trustee uses a pricing service, FT Interactive, to
value investments. FT Interactive uses market approach pricing which utilizes models and pricing systems as well as
mathematical tools and pricing analyst judgment. All investments are priced by this service, which is not quoted prices
in an active market, but rather significant other observable inputs; therefore, the investments are categorized as Level
2.
The Housing Development Authority obtains its fair value pricing on investments from their third party trustee. There
are multiple pricing methodologies which are used to value the Authority’s investments. These methods include, but are
not limited to, gathering pricing from multiple market sources and vendor credit information, observed market
movements, sector news into the pricing applications and models, or manual methods. Money Market Mutual Funds
classified as Level 1 are valued using quoted prices in active markets for those securities. Since the Authority’s debt
security investments are not actively traded on an exchange and rely on significant observable inputs for fair value
pricing, these securities are classified as Level 2.
The Housing Development Authority obtains its fair value pricing on interest rate swaps and forward MBS contracts
from a third party vendor. For interest rate swaps, the valuation was determined by calculating the difference between
the present values of each fixed cash flow to be paid and each floating cash flow to be received based upon the current
market yield curve. The present value factors for each cash flow are based on the implied zero coupon yield curve
determined by current market rates. Additionally, the values of the call options are determined by current market implied
volatility. Together these calculations, along with considerations from non-performance risks, determine the current fair
value of the Housing Development Authority’s swap contracts. The forward MBS contracts fair values were obtained
from an external pricing specialist using current trade pricing for similar financial instruments in active markets that the
Authority has the ability to access.
77
4. DISAGGREGATION OF RECEIVABLES AND PAYABLES
A. Receivables - Net
The line “Receivables, net” reported on the Government-wide Statement of Net Position consisted of the following
(Expressed in Thousands):
Governmental Activities
Non-
Social Dakota major
Trans- Services COVID-19 Cement Education Governm- Internal
General portation Federal Federal Trust Enhancement ental Service
Fund Fund Fund Fund Fund Trust Fund Funds Funds Total
Taxes Receivable $240,961 $ 17,109 $ $ $ $ $ 2,986 $ $ 261,056
Allowance (13,966) (9) (13,975)
Accounts Receivable 19,412 2,065 16,641 1,658 362 18,127 6,801 65,066
Allowance (5,576) (429) (114) (6,119)
Due From Other Governments 1,814 91,341 14,242 19,906 111,740 192 239,235
Interest Receivable 4,686 681 3 475 1,195 1,650 226 8,916
Current Loans and Notes 428 5,338 5,766
Allowance (48) (48)
Non-current Loans and Notes 5,252 54,506 59,758
Allowance (585) (585)
Due From Fiduciary Funds 37 69 106
Receivables, net $247,368 $116,438 $ 30,886 $ 21,564 $ 475 $ 1,557 $193,600 $ 7,288 $ 619,176
Business-type Activities
Clean Drinking
Water Water Unemploy-
State State ment Non-major
Lottery Revolving Revolving Insurance Enterprise
Fund Fund Fund Fund Funds Total
Accounts Receivable $ 5,749 $ $ $ 13,584 $ 142 $ 19,475
Allowance (14) (1,825) (1,839)
Due From Other Governments 764 509 23,462 122 24,857
Interest Receivable 64 2,995 1,851 646 5,556
Current Loans Receivable 20,519 10,401 7,542 38,462
Allowance (330) (330)
Noncurrent Loans Receivable 259,935 178,960 43,644 482,539
Allowance (1,963) (1,963)
Due From Fiduciary Funds 48 48
Receivables, net $ 5,799 $284,213 $ 191,721 $ 35,221 $ 49,851 $ 566,805
B. Accounts Payable and Other Current Liabilities
The line “Accounts Payable and Other Current Liabilities” reported on the Government-wide Statement of Net Position
consisted of the following (Expressed in Thousands):
Governmental Activities
Social Non-major
Trans- Services COVID-19 Dakota Educational Govermen- Internal
General portation Federal Federal Cement Enhancement tal Service
Fund Fund Fund Fund Trust Trust Funds Funds Total
Payroll and Withholdings $ 9,335 $ 4,656 $ 2,061 $ 7,849 $ $ $ 9,370 $ 2,669 $ 35,940
Accounts Payable 59,761 61,726 5,266 7,103 15 50 22,358 1,904 158,183
Medicaid and CHIP Claims 19,596 21,183 3,499 18,494 62,772
Due to Other Governments 938 12,124 46 9,750 31,827 129 54,814
Bank Tax Refund 10,834 10,834
Shared Revenue Distribution 16,074 35,090 51,164
Claims Payable 17,712 17,712
Due to Fiduciary Funds 98 98
Total $ 116,636 $ 78,506 $ 28,556 $ 28,201 $ 15 $ 50 $ 117,139 $ 22,414 $ 391,517
Business-type Activities
Clean Drinking
Water Water Unemploy-
State State ment Non-major
Lottery Revolving Revolving Insurance Enterprise
Fund Fund Fund Fund Funds Total
Payroll and Withholdings $ 117 $ 18 $ 32 $ $ 770 $ 937
Accounts Payable 3,930 413 136 3,916 8,395
Due to Fiduciary Funds 21 21
Escrow Payable 121 121
Other Liabilities 399 15,844 504 16,747
Total $ 4,567 $ 431 $ 168 $ 15,844 $ 5,211 $ 26,221
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5. INTERFUND TRANSACTIONS
The composition of interfund balances at June 30, 2020, is as follows (Expressed in Thousands):
A. Interfund Receivables and Payables
Due To
Trans- COVID-19 Non-major Unemployment Non-major Internal
General portation Federal Governmental Insurance Enterprise Service Fiduciary
Due From Fund Fund Fund Funds Fund Funds Funds Funds Total
General Fund $ $ 6 $ 1,614 $ 307 $ $ 39 $ 2,312 $ 98 $ 4,376
Transportation Fund 452 9 1,218 1,679
Social Services Federal Fund 298 1 779 1,078
COVID-19 Federal Fund 22,915 1 3 3 1,622 24,544
Education Enhancement Trust Fund 22,515 22,515
Non-major Governmental Funds 29,359 1,297 1,860 5,326 233 2,668 40,743
Lottery Fund 5,916 208 702 63 6,889
Clean Water State Revolving Fund 1 1
Drinking Water State Revolving Fund 2 2
Unemployment Insurance Fund 94 94
Non-major Enterprise Funds 6 8 14 139 21 188
Internal Service Funds 2 187 119 251 849 1,408
Fiduciary Funds 37 48 69 154
Total $ 80,750 $ 1,707 $ 3,474 $ 7,315 $ 251 $ 333 $ 9,722 $ 119 $ 103,671
Interfund receivables and payables are recorded for: 1) interfund goods or services provided or other reimbursable
transactions occurring between funds; 2) year-end entries eliminating deficit cash balances in funds as described
further in Note 3 Cash, Deposits, and Investments in the Notes to the Financial Statements; 3) other payables existing
between funds; and 4) expenditures paid by other funds related to the pandemic, based upon guidance from the
Federal Government, which management then moved to the COVID-19 Federal Fund.
B. Interfund Transfers
Transferred To
Education Non-major Non-major Internal
General Transportation Enhancement Governmental Enterprise Service
Transferred From Fund Fund Trust Fund Funds Funds Funds Total
General Fund $ $ 4,076 $ 1,125 $ 19,003 $ 40 $ 1,462 $ 25,706
Transportation Fund 3,802 1,056 7 4,865
Social Services Federal Fund 148 148
Covid-19 Federal Fund 606 606
Dakota Cement Trust Fund 13,005 13,005
Education Enhancement Trust Fund 22,515 22,515
Non-major Governmental Funds 72,907 3,680 7,317 10,263 8,054 102,221
Lottery Fund 123,736 1,031 3,664 128,431
Clean Water State Revolving Fund 44 44
Drinking Water State Revolving Fund 69 69
Unemployment Insurance Fund 734 734
Non-major Enterprise Funds 187 441 1,000 1,628
Total $ 236,152 $ 8,787 $ 8,442 $ 36,028 $ 9,101 $ 1,462 $ 299,972
Transfers are used to: 1) move revenues from the fund that statute or budget requires to collect them to the fund that
statute or budget requires to expend them; 2) move receipts restricted for debt service from the funds collecting the
receipts to the debt service funds as debt service payments become due; and 3) use unrestricted revenues collected in
the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.
79
6. CAPITAL ASSETS
A. Primary Government
Capital Assets consisted of the following for fiscal year 2020 (Expressed in Thousands):
Continued on next page
80
Beginning Ending
Business-type Activities Balance Additions Deletions Balance
Capital Assets Not Being Depreciated:
Land $ 295 $ $ $ 295
Construction in Progress 235 32 267
Total Capital Assets Not Being Depreciated 530 32 0 562
Capital Assets Being Depreciated:
Land Improvements 924 172 1,096
Buildings 8,591 8,591
Equipment 3,993 215 18 4,190
Intangible Assets - Software 2,620 2,620
Total Capital Assets Being Depreciated 16,128 387 18 16,497
Less Accumulated Depreciation:
Land Improvements 674 20 694
Buildings 3,684 149 3,833
Equipment 3,381 195 18 3,558
Intangible Assets - Software 2,268 151 2,419
Total Accumulated Depreciation 10,007 515 18 10,504
Total Capital Assets Being Depreciated, Net 6,121 (128) 5,993
Total Business-type Activities, Net $ 6,651 $ (96) $ 0 $ 6,555
Depreciation was charged to the function of government as follows:
Governmental Activities Amount
Unallocated $ 53
General Government 10,362
Health, Human, and Social Services 7,452
Law, Justice, Public Protection, and Regulation 10,096
Agriculture and Natural Resources 6,036
Transportation 86,788
Education 4,265
Total Governmental Activities $125,052 *
Business-type Activities
Enterprise Funds $ 429 *
* The difference between additions to Accumulated Depreciation and Depreciation Expense is the result of a transfer of
buildings from a component unit to the Primary Government and a transfer of equipment between Governmental
Activities and Business-Type Activities.
81
B. Component Units
Capital Assets for component units consisted of the following for fiscal year 2020 (Expressed in Thousands):
Beginning
Higher Education*: Balance Additions Deletions Balance
Capital Assets Not Being Depreciated:
Land, as restated $ 30,965 $ 1,981 $ 1,389 $ 31,557
Construction in Progress, as restated 93,994 110,207 100,377 103,824
Works of Art and Historical Treasures 9,794 194 9,988
Total Capital Assets Not Being Depreciated, as restated 134,753 112,382 101,766 145,369
Capital Assets Being Depreciated:
Land Improvements 61,307 4,724 234 65,797
Infrastructure, as restated 85,925 13,708 382 99,251
Buildings 1,461,302 88,696 12,199 1,537,799
Equipment and Other Assets, as restated 285,653 14,777 6,114 294,316
Total Capital Assets Being Depreciated, as restated 1,894,187 121,905 18,929 1,997,163
Less Accumulated Depreciation:
Land Improvements 25,552 3,084 89 28,547
Infrastructure, as restated 33,191 3,245 94 36,342
Buildings 472,811 42,151 8,698 506,264
Equipment and Other Assets, as restated 228,894 13,767 5,885 236,776
Total Accumulated Depreciation, as restated 760,448 62,247 14,766 807,929
Total Capital Assets Being Depreciated, Net, as restated 1,133,739 59,658 4,163 1,189,234
Total Higher Education Capital Assets, Net, as restated 1,268,492 172,040 105,929 1,334,603
* Higher Education amounts do not include their foundations.
Housing Development Authority:
Capital Assets Not Being Depreciated:
Land 220 220
Total Capital Assets Not Being Depreciated 220 0 0 220
Capital Assets Being Depreciated:
Land Improvements 1,262 1,262
Buildings 4,999 4,999
Equipment 4,361 345 42 4,664
Total Capital Assets Being Depreciated 10,622 345 42 10,925
Less Accumulated Depreciation:
Land Improvements 795 38 1 832
Buildings 1,344 128 1,472
Equipment and Other Assets 3,571 231 40 3,762
Total Accumulated Depreciation 5,710 397 41 6,066
Total Capital Assets Being Depreciated, Net 4,912 (52) 1 4,859
Total Housing Development Authority Capital Assets, Net 5,132 (52) 1 5,079
Continued on next page
82
Beginning
Science and Technology Authority: Balance Additions Deletions Balance
Capital Assets Not Being Depreciated:
Land $ 1,814 $ $ $ 1,814
Underground Mine 17,937 17,937
Archive Materials 70 70
Construction in Progress 17,911 1,730 17,817 1,824
Total Capital Assets Not Being Depreciated 37,732 1,730 17,817 21,645
Capital Assets Being Depreciated:
Building Improvements 37,807 17,818 55,625
Buildings 8,120 416 7,704
Equipment 11,163 573 110 11,626
Vehicles 119 137 19 237
Infrastructure 1,959 44 2,003
Total Capital Assets Being Depreciated 59,168 18,572 545 77,195
Less Accumulated Depreciation:
Building Improvements 7,993 1,085 9,078
Buildings 2,080 159 102 2,137
Equipment 5,798 696 100 6,394
Vehicles 80 14 17 77
Infrastructure 396 52 448
Total Accumulated Depreciation 16,347 2,006 219 18,134
Total Capital Assets Being Depreciated, Net 42,821 16,566 326 59,061
Total Science and Technology Authority Capital Assets, Net 80,553 18,296 18,143 80,706
Ellsworth Development Authority
Capital Assets Not Being Depreciated:
Land and Easements 203 203
Total Capital Assets Not Being Depreciated 0 203 203 0
Capital Assets Being Depreciated:
Equipment 4 4
Buildings 17,199 17,199
Improvements 6,921 6,921
Total Capital Assets Being Depreciated 24,124 0 0 24,124
Less Accumulated Depreciation:
Equipment 3 3
Buildings 2,808 573 3,381
Improvements 1,362 277 1,639
Total Accumulated Depreciation 4,173 850 0 5,023
Total Capital Assets Being Depreciated, Net 19,951 (850) 0 19,101
Total Ellsworth Development Authority Capital Assets, Net 19,951 (647) 203 19,101
Total Discretely Presented Component Units, Net, as restated $ 1,374,128 $ 189,637 $ 124,276 $ 1,439,489
83
C. Construction in Progress
The State has entered into contracts for the renovation and construction of buildings, structures, and infrastructure
(highway projects). Constructions in Progress at June 30, 2020, are as follows (Expressed in Thousands):
Amount
Primary Government
Governmental Activities
Land Improvements $ 4,048
Buildings and Structures 46,621
Equipment 1,146
Vehicles 7,713
Intangibles - Computer Software 8,531
Infrastructure 277,004
Total Governmental Activities 345,063
Business - Type Activities
Intangibles - Computer Software 267
Total Business - Type Activities 267
Total Primary Government $ 345,330
Discretely Presented Component Units
Higher Education*
Land Improvements $ 8,463
Buildings and Structures 88,267
Infrastructure 6,363
Equipment 731
Science and Technology
Buildings and Structures 1,824
Total Discretely Presented Component Units $ 105,648
* Higher Education amounts do not include their foundations.
D. Special Item – Impairment of Capital Asset
The State has abandoned construction on a computer software project. This has resulted in an impairment of $3.6
million of assets previously reported as Construction in Progress – Intangibles (computer software). This impairment is
reported as a Special Item in the Government-wide Statement of Activities.
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7. RETIREMENT PLANS
A. South Dakota Retirement System
General Description of the System. The South Dakota Retirement System (SDRS or the System) is a cost
sharing, multiple employer public employee retirement system (PERS) established to provide retirement benefits for
employees of the State and its political subdivisions. Members of SDRS include full time employees of public schools,
the State, the Board of Regents, city and county governments, and other public entities. Public schools, cities, and
counties may choose not to include certain full time employees in the System.
SDRS is considered a part of the State financial reporting entity and is included in the State’s financial report as a
pension trust fund. Authority for establishing, administering, and amending plan provisions is found in South Dakota
Codified Law (SDCL) 3-12C. Copies of the audited SDRS financial statements are available at www.sdrs.sd.gov.
The South Dakota Retirement System Board of Trustees (the Board) is the governing authority of SDRS. The Board
consists of 14 elected representatives from participating groups, two appointees of the governor, and an ex officio
nonvoting representative of the South Dakota Investment Council. The elected representatives of the Board are two
teacher members; two State employee members; a participating municipality member; a participating county member;
a participating classified employee member; a current contributing Class B member other than a justice, judge, or
magistrate judge; a county commissioner of a participating county; a school district board member; a justice, judge, or
magistrate judge; an elected municipal official of a participating municipality; a retiree; and a faculty or administrative
member employed by the Board of Regents. The two Governor’s appointees consist of one head of a principal
department established pursuant to SDCL 1-32-2, or one head of a bureau under the office of executive management
and one individual from the private or public sector.
SDRS is a hybrid defined benefit plan designed with several defined contribution plan type provisions. The system
includes three classes of members: Class A general members, Class B public safety and judicial members, and Class
C Cement Plant Retirement Fund members. Members and their employers make matching contributions, which are
defined in State statute. SDRS may expend up to 3% of the annual contributions for administrative expenses subject to
approval by the executive and legislative branches of the State.
Members that were hired before July 1, 2017, are Foundational members. Class A Foundation members and Class B
Foundation judicial members who retire after age 65 with three years of service are entitled to an unreduced annual
retirement benefit. An unreduced annual retirement benefit is also available after age 55 for Class A Foundation
members where the sum of age and credited service is equal to or greater than 85 or after age 55 for Class B Foundation
judicial members where the sum of age and credited service is equal to or greater than 80. Class B Foundation public
safety members can retire with an unreduced annual retirement benefit after age 55 with three years of contributory
service. An unreduced annual retirement benefit is also available after age 45 for Class B Foundation public safety
members where the sum of age and credited service is equal to or greater than 75. All retirement benefits that do not
meet the above criteria may be payable at a reduced level. Class A and B eligible spouses of foundational members
will receive a 60% joint and survivor benefit when the member dies.
Members that were hired on/after July 1, 2017, are Generational members. Class A Generational members and Class
B Generational judicial members who retire after age 67 with three years of contributory service are entitled to an
unreduced annual retirement benefit. Class B Generational public safety members can retire with an unreduced annual
retirement benefit after age 57 with three years of contributory service. At retirement, married Generational members
may elect a single-life benefit, a 60% joint and survivor benefit, or a 100% joint and survivor benefit. All Generational
retirement benefits that do not meet the above criteria may be payable at a reduced level. Generational members will
also have a variable retirement account (VRA) established, in which they will receive up to 1.5% of compensation funded
by part of the employer contribution. VRAs will receive investment earnings based on investment returns.
Class C Cement Plant Retirement Fund members have a normal retirement age of 65 and early retirement is age 55
with the required credited service. Class C Cement Plant provides for disability payments for those disabled on or before
March 16, 2001. All members of the Cement Plant Retirement Plan on March 15, 2001 were 100% vested. Class C
members may elect a single-life benefit, or joint and survivor benefits as described in their plan documents.
Legislation enacted in 2017 established the current COLA process. At each valuation date:
• Baseline actuarial accrued liabilities will be calculated assuming the COLA is equal to the long-term inflation
assumption of 2.25%.
• If the fair value of assets is greater or equal to the baseline actuarial accrued liabilities, the COLA will be:
* The increase in the 3rd quarter CPI-W, no less than 0.5% and no greater than 3.5%.
85
• If the fair value of assets is less than the baseline actuarial accrued liabilities, the COLA will be:
* The increase in the 3rd quarter CPI-W, no less than 0.5% and no greater than a restricted maximum such
that, that if the restricted maximum is assumed for future COLAs, the fair value of assets will be greater or
equal to the accrued liabilities.
All benefits except those depending on the Member’s Accumulated Contributions are annually increased by the Cost-
of-Living Adjustment.
SDRS is a qualified defined benefit retirement plan under Section 401(a) of the Internal Revenue Code and is exempt
from federal income taxes. SDRS last received a favorable determination letter dated October 3, 2016, in which the
Internal Revenue Service stated that the System, as then designated, was in compliance with the applicable
requirements of the Internal Revenue Code. SDRS believes that the system currently is designed and being operated
in compliance with the applicable requirements of the Internal Revenue Code, and therefore, SDRS continues to be tax
exempt as of June 30, 2020. Therefore, no provision for income taxes has been included in SDRS’s financial statements.
Summary of Significant Accounting Policies. SDRS’s financial statements are prepared using the accrual
basis of accounting in accordance with U.S. generally accepted accounting principles applicable to governmental
accounting for a pension trust fund. Employee and employer contributions are recognized when due pursuant to formal
commitment, as well as statutory requirements. Pension benefit payments are due the first day of the month following
the retirement of a member, and the first of each month thereafter. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan.
Investments are reported at fair value, in accordance with GASB Statement No. 72. Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. Additional required disclosures can be found in Note 1, Summary of Significant Accounting Policies.
Foreign exchange rate gains and losses are included with the net appreciation in fair value in investments. Futures
contracts are marked to market based on quoted futures prices with changes in fair value reflected in the current period.
Interest is accrued in the period in which it is earned and dividend income is recorded on the ex-dividend date.
The arithmetically calculated money-weighted return net of fees was 1.56% in 2020. The money-weighted rate of return
considers the changing amounts actually invested during a period and weights the amount of pension plan investment
by the proportion of time they are available to earn during that period. The rate of return equates the sum of weighted
external cash flows into and out of pension plan investments to the ending fair value of the pension plan investment.
The preparation of SDRS’s financial statements in conformity with accounting principles generally accepted in the
United States of America requires the plan administrator to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statements, and changes therein. Actual results could differ from those estimates.
Contributions. Covered employees are required by statute to contribute a percentage of their salary to SDRS as
follows:
Class A members 6% of salary
Class B judicial members 9% of salary
Class B public safety members 8% of salary
All participating employers are required to contribute an amount equal to the members’ contributions. Members may
make an additional contribution of 1.5% of compensation for optional spouse coverage (closed to new enrollees after
July 1, 2010).
SDRS is funded by fixed member and employer contributions at a rate established by South Dakota law. On an annual
basis, an actuarial valuation of SDRS is performed to determine the adequacy of the fixed contributions to pay the
normal costs and expenses, if the System is fully funded or pay the normal costs, expenses and amortize the unfunded
actuarial accrued liability (UAAL) if the System is not fully funded. The June 30, 2020, actuarial valuation of the plan
determined that the System is fully funded and that the statutorily required employer contributions meet the requirements
for the annual required contributions of the employers under GASB Statement No. 67, Financial Reporting for Pension
Plans; and the statutorily required employer contributions are sufficient to pay the employer normal cost and expenses.
Contributions for the primary government during fiscal year 2020 were $27.2 million, during fiscal year 2019 were $26.4
million, and during fiscal year 2018 were $26.2 million. Contributions for the State’s component units during 2020 were
$19.7 million, during fiscal year 2019 were $19.4 million, and during fiscal year 2018 were $19.1 million.
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State’s Proportionate Share of SDRS. For fiscal year 2020, the State and its component units used a July 1,
2018, to June 30, 2019, measurement date for reporting purposes.
The State’s proportionate share of SDRS’s collective net pension asset is 20.7% or $2.2 million using a June 30, 2019,
measurement date. This percentage was measured based on all employer contributions from July 1, 2018, through
June 30, 2019. Pension expenses for the State were $91.2 million and contributions subsequent to the measurement
date were $27.2 million. The State’s proportionate share decreased by 0.4% over the prior fiscal year’s proportionate
share of 21.1%.
The State’s component unit’s proportionate share of SDRS’s collective net pension asset is 15.2% or $1.6 million using
a June 30, 2019, measurement date. This percentage was measured based on all employer contributions from July 1,
2018, through June 30, 2019. Pension expense for component units were $66.9 million and contributions subsequent
to the measurement date were $19.7 million. The State’s component unit’s proportionate share decreased by 0.1% over
the prior fiscal year’s proportionate share of 15.3%.
The components of the net pension asset of the System at June 30, 2019, were as follows (Dollars Expressed in
Thousands):
Discretely Presented
State of South Dakota Component Units
Proportionate Allocation Proportionate Allocation
20.73% 15.24%
Total Pension Liability $ 2,583,581 $ 1,899,040
Plan Fiduciary Net Position (2,585,777) (1,900,654)
Net Pension (Asset) Liability $ (2,196) $ (1,614)
Fiduciary Net Position as a Percentage
of Net Pension Liability 100.09% 100.09%
Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as of June 30, 2019,
using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation: 2.25%
Salary Increase: 6.50% at entry to 3.00% after 25 years of service
Discount Rate: 6.50%, net of pension plan investment expenses
Future COLAs: 1.88% FY20 and 1.41% FY21
Mortality rates were based on 97% of the RP-2014 Mortality Table, adjusted to 2006 and projected generationally with
Scale MP-2016, white collar rates for females and total dataset rates for males. Mortality rates for disabled members
were based on the RP-2014 Disabled Retiree Mortality Table, adjusted to 2006 and projected generationally with Scale
MP-2016.
The actuarial assumptions used in the June 30, 2019, valuation were based on the results of an actuarial experience
study for the period of July 1, 2011, to June 30, 2016.
Discount rate - The discount rate used to measure the total pension liability was 6.5%. The projection of cash flows
used to determine the discount rate assumed that plan member contributions will be made at the current contribution
rate and that matching employer contributions will be made at rates equal to the member rate. Based on those
assumptions, the pension plan’s fiduciary net position was projected to be available to make all future benefit payments
of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension (asset) liability.
Investments - The long-term expected rate of return on pension plan investments was determined using a method in
which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation.
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Best estimates of real rates of return for each major asset class included in the pension plan’s target asset allocation
as of June 30, 2019, (see the discussion of the pension plan’s investment policy) are summarized in the following table
using geometric means:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Global Equity 58% 4.7%
Fixed Income 30% 1.7%
Real Estate 10% 4.3%
Cash 2% 0.9%
Total 100%
Sensitivity of (asset) liability to changes in the discount rate. The following presents the net pension (asset) liability
of the State’s proportionate share of SDRS’s collective net pension asset of $2.2 million using a June 30, 2019,
measurement date, calculated using the discount rate of 6.5%, as well as what the System’s net pension (asset) liability
would be if it were calculated using a discount rate that is 1% point lower (5.5%) or 1% point higher (7.5%) than the
current rate (Expressed in Thousands):
Current
1% Decrease Discount Rate 1% Increase
State’s Proportionate Share of SDRS’s Net Pension (Asset) Liability $ 364,651 $ (2,196) $ (301,112)
Discretely Presented Component units Proportionate Share
of SDRS Net Pension (Asset) Liability 268,034 (1,614) (221,330)
Deferred Outflows and Inflows of Resources Related to Pensions. The Deferred Outflows and Inflows of Resources
related to pensions at June 30, 2020, were as follows (Expressed in Thousands):
State of South Dakota
Deferred Outflows and Inflows of Resources
Related to Pensions
Discretely Presented
Primary Government Component Units
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Source Resources Resources Resources Resources
Differences between Expected and Actual Experience $ 8,618 $ 994 $ 6,335 $ 731
Changes in Assumptions 75,878 31,106 55,772 22,864
Net Differences between Projected and Actual
Earnings on Pension Plan Investments 12,656 9,303
Changes in Proportionate Share and Differences between
Contributions and Proportionate Share of Contributions 4,034 2,324 208
Contributions Subsequent to the Measurement Date 27,199 19,654
Total $ 115,729 $ 44,756 $ 84,085 $ 33,106
The $27.2 million and the $19.7 million reported above as deferred outflows of resources by the primary government
and the discretely presented component units are the result of employer contributions made subsequent to the
measurement date of June 30, 2019. These contributions will be recognized as an increase of the net pension asset in
the upcoming year.
The remaining amounts reported above as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense (revenue) as follows (Expressed in Thousands):
Discretely
Year Ending Primary Presented
June 30 Government Component Units
2021 $ 49,820 $ 36,293
2022 (5,993) (4,687)
2023 (4,424) (3,428)
2024 4,371 3,147
Total $ 43,774 $ 31,325
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B. Department of Labor Employment Security Retirement Plan
Employees of the Department of Labor and Regulation hired prior to July 1, 1980, had the option to become a member
of the SDRS or maintain membership in the Employment Security Retirement Plan. Per SDCL 61-2-15, the Department
of Labor and Regulation may establish this retirement program and contract with a retirement plan administrator
selected by the employee’s retirement board. In addition, this SDCL further specifies that no obligation may be incurred
against the State's General Fund to pay for this program. The assets of the plan are not included in the accompanying
financial statements because the assets are remitted to a third-party who administers the plan for the participants. The
State has no liability for losses under the plan.
The Employment Security Retirement Plan was established as a defined benefit single employer plan administered
through a private insurance carrier, however; the plan can be changed at any time. If the plan should terminate, the full
amount in the employee account will be used to provide a retirement benefit to the employee. The plan assets over and
above employee accounts will be used up on a priority basis to provide retirement income for plan members.
On July 1, 2019, the most recent actuarial valuation date, the plan had 4 active participants, 1 vested terminated
participant, and 194 retired participants and beneficiaries.
8. DEFERRED COMPENSATION PLAN
The State of South Dakota (through the South Dakota Retirement System) maintains a deferred compensation plan
known as the Supplemental Retirement Plan (SRP). The SRP was established in July 1987 in accordance with Internal
Revenue Code Section 457 under the administrative responsibility of the South Dakota Retirement System Board of
Trustees. The SRP is available to all public employees and permits them to defer a portion of their salary until future
years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable
emergency.
All amounts of compensation deferred under the SRP, all property and rights purchased with those amounts, and all
income attributable to those amounts, property, or rights are at all times held in trust for the exclusive benefit of the
participants until made available to a participant or the participant’s beneficiary. The State has no liability for losses
under the plan.
The assets of the deferred compensation plan are not included in the accompanying financial statements because the
assets are remitted to a third party who administers and markets the plan for the participants. A copy of the South
Dakota Retirement System financial statements is available to the public at www.sdrs.sd.gov.
9. SPECIAL PAY PLAN
The State of South Dakota (through the South Dakota Retirement System) offers the Special Pay Plan (SPP) that was
established in July 2004. SPP is a qualified plan pursuant to Internal Revenue Code Section 401(a) under the
administrative responsibility of the SDRS Board of Trustees. South Dakota state government and Higher Education are
participating units and every state political subdivision may become a participating unit in the plan. The SPP mandates
that qualifying employees (over age 55 and $600 or more in special pay) of participating units defer 100% of their special
lump-sum termination pay to the plan. The participating unit transfers the deferred pay to the fund. This deferred pay is
available to a participant immediately after termination, upon later retirement, or to beneficiaries or an estate upon the
participant’s death. A copy of the South Dakota Retirement System financial statements is available to the public at
www.sdrs.sd.gov.
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10. FUND BALANCES AND NET POSITION
Fund Balance Classifications – Governmental Funds
The following table provides additional detail regarding the fund balances reported on the Governmental Fund Balance
Sheet at June 30, 2020, (Expressed in Thousands):
Social Dakota Education Nonm ajor
Trans- Services COVID-19 Cem ent Enhancem ent Governm ental
General portation Federal Federal Trust Trust Funds Total
Nonspendable
Inventory $ 2,735 $ 17,391 $ 15 $ 1,171 $ $ $ 1,943 $ 23,255
Prepaids 2,565 241 1,217 62 1,756 5,841
Permanent Fund Principal 410,924 147,376 558,300
Total Nonspendable Fund Balances 5,300 17,632 1,232 1,233 0 410,924 151,075 587,396
Restricted
Education 333,809 197,273 16,542 547,624
Health and Public Assistance 80,238 80,238
Law , Justice, and Public Protection 20,254 20,254
Economic Development 3,382 52,067 55,449
Transportation 217,161 217,161
Agriculture and Natural Resources 96,438 96,438
Energy Conservation or Development 12,566 12,566
Game and Fish 7,979 7,979
Parks and Recreation 3,475 3,475
Public Buildings 960 960
Public Broadcasting 751 751
Railroads 24,387 24,387
Pandemic Response 1 1
Debt Service 24,473 24,473
Capital Projects 324 324
Other 10,166 10,166
Total Restricted Fund Balances 3,382 217,161 0 1 333,809 197,273 350,620 1,102,246
Com m itted
Education 181 181
Health and Public Assistance 3,010 3,010
Law , Justice, and Public Protection 23,241 23,241
Agriculture and Natural Resources 4,736 4,736
Environmental Cleanup 6,055 6,055
Energy Conservation or Development 966 966
Public Buildings 2,274 2,274
Railroads 426 426
Other 10,354 10,354
Total Com m itted Fund Balances 0 0 0 0 0 0 51,243 51,243
Assigned
Education 6,123 764 6,887
Higher Education 10,121 10,121
Health and Public Assistance 54,572 1,623 7,446 63,641
Law , Justice, and Public Protection 15,472 6,896 22,368
Agriculture and Natural Resources 95 781 876
Game and Fish 477 477
Tourism Promotion 4,056 4,056
Public Buildings 23,133 3,228 26,361
Economic Development 11,503 11,503
Other 10,811 4,855 15,666
Total Assigned Fund Balances 136,363 0 1,623 0 0 0 23,970 161,956
Unassigned Fund Balances * 381,326 (8,359) 372,967
Total Fund Balances $ 526,371 $ 234,793 $ 2,855 $ 1,234 $ 333,809 $ 608,197 $ 568,549 $ 2,275,808
* This amount includes $169.6 million of equity from the Budget Reserve established by the 1991 South Dakota
Legislature and $46.3 million of equity from the General Revenue Replacement Fund established by the 2015 South
Dakota Legislature, as discussed further in the following paragraphs.
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Budget Reserve
The 1991 South Dakota Legislature established the Budget Reserve that is funded from any unobligated cash in the
General Fund. The maximum balance of the Budget Reserve is 10% of the prior year's General Fund appropriation.
Expenditures out of the Budget Reserve shall only be used by special appropriation (which requires a two-thirds vote
of all the members of each house of the Legislature) and shall only redress such unforeseen expenditure obligations or
such unforeseen revenue shortfalls as may constitute an emergency pursuant to South Dakota Constitution, Article III,
Section 1. The balance in the Budget Reserve at June 30, 2020, was $169.6 million and is reported as unassigned fund
balance within the General Fund.
General Revenue Replacement Fund
House Bill 1050, passed during the 2015 Legislative Session, created the General Revenue Replacement Fund
(GRRF). This fund is to be used to balance the General Fund annual budget due to an unforeseen revenue shortfall.
Revenues deposited in the GRRF include unobligated General Fund cash remaining at the end of a fiscal year after the
transfer into the Budget Reserve, if the amount in the GRRF does not exceed 15% of the General Fund appropriations
in the General Appropriations Act for the previous fiscal year. The balance in the GRRF at June 30, 2020, was $46.3
million and is reported as unassigned fund balance within the General Fund.
General Fund
GASB 54
Since the implementation of GASB 54 in fiscal year 2011, 12 statutorily created funds no longer qualify as Special
Revenue Funds and are required to be combined with the State’s General Fund. As of June 30, 2020, the
following equity balances are included within the State’s General Fund in accordance with GASB 54 (Expressed
in Thousands):
Fund Balance - June 30, 2020 as reported $ 526,371
Less Statutorily Created Funds Combined with the General Fund:
Tourism Promotion - assigned for Tourism Promotion 4,056
Investment Council Operating - assigned for Other 2,093
Private Activity Bond - assigned for Other 353
Teen Court - assigned for Other 146
Proof of Concept - assigned for Economic Development 23
Fine Arts - assigned for Other 375
Economic Development - assigned for Economic Development 470
Local Infrastructure Improvement - assigned for Economic Development 5,745
Workforce Education - assigned for Education 2,404
Extraordinary Litigation Expense - assigned for Other 366
Legislative Contingency Fund - unassigned 1,545
Unclaimed Property - unassigned 23
Fund Balance - June 30, 2020 excluding GASB 54 combinations $ 508,772
The Immigrant Investor Program (EB-5 Program)
In evaluating the contract between SDRC, Inc. and GOED, relating to the EB-5 program, it was determined the
SDRC Indemnification Fund One Account should be reported in the State’s General Fund. As of June 30, 2020,
the following equity balance was included within the State’s General Fund (Expressed in Thousands):
The Immigrant Investor Program (EB-5 Program):
Fund Balance - June 30, 2020 excluding GASB 54 combinations $ 508,772
Less SDRC Funds Combined with the General Fund:
SDRC Indemnification Fund One Account - restricted for Economic Development 3,382
Fund Balance - June 30, 2020 excluding all combinations $ 505,390
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Net Position Restricted by Enabling Legislation
The Government-wide Statement of Net Position reports $1.7 billion of restricted net position for the primary government
of which $174.7 million was restricted by enabling legislation. Restrictions imposed by enabling legislation could be
changed by future legislative action.
Funds Held as Permanent Investments
Funds held as permanent investments represent amounts that have been legally restricted for the purpose of providing
a long-term source of investment income. Funds held in special revenue funds for this purpose have their principal
balance classified as nonspendable in the governmental fund financial statements since these amounts are not
available for appropriation. In the Government-wide Statement of Net Position, the principal balance is shown as
nonexpendable and the investment earnings remaining in these funds at June 30, 2020, is shown as expendable.
Education Enhancement Trust Fund. This fund consists of monies received from the Tobacco Settlement
Agreement, monies transferred from the Tobacco Securitization Fund, monies from the Youth-at-Risk Fund and
General Fund appropriations for scholarship purposes. The Fund is authorized by state law to make an annual
distribution equal to 4.0% of its market value (less the investment expenses) into the General Fund for educational
enhancement programs. Article XII, section 6 of the Constitution of the State of South Dakota also states that,
“the Education Enhancement Trust Fund may not be diverted for other purposes, nor may the principal be invaded
unless appropriated by a three-fourths vote of all the members-elect of each house of the legislature.”
Health Care Trust Fund. This fund is authorized by state law to make an annual distribution equal to 4.0%
of its market value (less the investment expenses) into the General Fund for health care related programs. Article
XII, section 5 of the Constitution of the State of South Dakota also states that, “the Health Care Trust Fund may
not be diverted for other purposes, nor may the principal be invaded unless appropriated by a three-fourths vote
of all of the members-elect of each house of the legislature.”
Permanent Fund. This fund is administered by the Office of School and Public Lands and accounts for
resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes
that support the reporting government’s programs.
These balances at June 30, 2020, are summarized as follows (Expressed in Thousands):
Fund Expendable Nonexpendable Total Restriction
Education Enhancement Trust $ 197,273 $ 410,924 $ 608,197
Health Care Trust 59,858 85,631 145,489
Permanent (1,014) 61,745 60,731
Total $ 256,117 $ 558,300 $ 814,417
Individual Fund Deficits
The following individual funds had deficit fund equity at June 30, 2020, (Expressed in Thousands):
Fund Type/Fund Deficit
Internal Service:
State Worker's Compensation $ 28,326
State Worker's Unemployment 199
Special Revenue:
State Fire Suppression 2,874
Law Enforcement Revolving 1,030
Railroad Administration 89
Public Utilities Commission Federal 83
Animal Damage Control 72
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11. COMMITMENTS
At June 30, 2020, the Primary Government had operating commitments of $1.2 billion and the State’s discretely
presented component units had operating commitments of $198.2 million. The Primary Government also had uncalled
capital commitment of $2.2 billion. These commitments are broken down as follows:
Primary Government
Major Governmental Funds
General Fund: The total amount committed for the General Fund is $199.0 million broken down by departments
as follows:
• Department of Corrections has commitments totaling $9.9 million for building repairs and maintenance.
• Bureau of Administration has commitments totaling $13.0 million for multiple statewide maintenance and
repair projects.
• Department of Education has commitments totaling $14.2 million for grants, computer systems
maintenance, and various K-12 programs.
• Bureau of Information and Telecommunications has commitments totaling $7.5 million for various
service contracts and encumbered purchase orders.
• Department of Social Services has commitments totaling $62.7 million for alcohol and drug services,
community mental health services, food services, janitorial services, and various other contractual
commitments.
• Department of Military has commitments totaling $1.4 million for construction commitments for the Army
Aviation Support Facility Readiness Center.
• Department of Human Services has commitments totaling $0.5 million for consultant services, grants,
and construction commitments.
• Governor’s Office of Economic Development has commitments totaling $89.2 million for sales and use
tax paid on projects.
• Unified Judicial System has commitments totaling $0.6 million for various programs and services for
chemical dependency and mental health.
Transportation Fund: The total amount committed for the Transportation Fund is $411.8 million broken down
as follows:
• Department of Transportation has commitments totaling $409.8 million for construction commitments,
various highway projects, work in progress, maintenance projects, bridge repairs, pavement markings,
drainage repairs, deer and debris pickup, snow plowing, and street sweeping.
• Department of Public Safety has commitments totaling $2.0 million for yearly maintenance cost for the
record management system and to preform maintenance services for existing access programs.
Social Services Federal Fund: Department of Social Services has commitments totaling $95.3 million for
various contractual commitments.
COVID-19 Federal Fund: The total amount committed for the COVID-19 Federal Fund is $10.0 million broken
down as follows:
• Bureau of Finance and Management has commitments totaling $0.6 million for various COVID-19
related response.
• Department of Health has commitments totaling $6.0 million for grants to rural hospitals, transportation
for patients with exposure to coronavirus, and other COVID-19 related response.
• Department of Social Services has commitments totaling $3.4 million for community services block
grants, Medicaid dental claims, food services, and community mental health services.
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Nonmajor Governmental Funds
Capital Projects Fund: South Dakota Building Authority has commitments totaling $13.7 million for contracts
and other construction commitments.
Education Federal Fund: Department of Education has commitments totaling $39.6 million for various grants,
providing professional coaching for Birth to Three Bright Beginnings program and various K-12 programs and
support.
Labor Fund: Department of Labor and Regulation has commitments totaling $1.7 million for various grants and
contractual commitments.
Health Federal Fund: Department of Health has commitments totaling $9.7 million for clerical services,
maintenance of several computer systems, medical case management services, HIV prevention services,
covered breast and cervical cancer screening services, WIC misuse investigations, and mass reach
communication services for the South Dakota Tobacco Control Program.
Governor’s Office and State Development Federal Fund: Governor’s Office of Economic Development has
commitments totaling $9.5 million for SD Works Loan, Community Development Block Grant, and Energy
Efficiency Community Block Grant Loan programs.
Public Safety Emergency Management Fund: Department of Public Safety has commitments totaling $11.5
million grant payments, emergency management courses, and SD multi-hazard plan.
Natural Resources Federal Fund: Department of Environment and Natural Resources has commitments
totaling $3.1 million in federal subgrant outstanding obligations.
Health Fund: Department of Health has commitments totaling $1.6 million for supplying IT services, medical
case management, covered breast and cervical cancer screenings services, courier services for the rapid
transportation of samples to the Public Health Laboratory, and Correctional Health.
Motor Vehicle Fund: Department of Public Safety has commitments totaling $7.1 million for encumbrances
and contracts for driver’s licensing services.
Revenue Fund: Department of Revenue has commitments totaling $12.6 million for the centralized production
and distribution of license plates.
Water and Environment Fund: Department of Environment and Natural Resources has commitments totaling
$37.6 million for consolidated water facilities construction program, solid waste management program, and
SWRMS grants and loans.
Military Federal Fund: Department of Military has commitments totaling $4.5 million for constructing Army
Aviation Support Facility (AASF) Readiness Center, security, and sub-recipient agreements.
Other Nonmajor Governmental Funds: The total amount committed for the Other Nonmajor Special Revenue
Funds is $61.5 million broken down by agency as follows:
• Governor’s Office of Economic Development has commitments totaling $1.0 million for local
infrastructure improvement program grants.
• Unified Judicial System has commitments totaling $0.7 million for rural attorney contracts and office
equipment.
• Department of Public Safety has commitments totaling $40.4 million for highway safety grant payments,
public safety announcements, public education partnership program announcements, computer system
installation and support, conducting surveys, provide support and monitoring of educational
opportunities, and a new 911 system design and maintenance.
• Department of Health has commitments totaling $4.3 million for covered breast and cervical cancer
screening services, HIV prevention services, and various activities aimed at tobacco prevention and
control.
• Department of Education has commitments totaling $4.4 million for various grants and contractual
commitments.
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• South Dakota Soybean Research and Promotion Council has commitments totaling $2.1 million for
various contractual projects.
• Department of Social Services has commitments totaling $1.4 million for medical transcription services,
alcohol and drug services, and various other contractual commitments.
• Department of Veteran’s Affairs has commitments totaling $4.2 million for building a veteran’s cemetery
in Sioux Falls.
• South Dakota Corn Council has commitments totaling $2.0 million for the renovation of research space
within an agricultural hall for a South Dakota State University and the creation of a South Dakota Corn
Endowed Chair Position in Precision Agriculture at State of South Dakota University.
• Bureau of Information and Telecommunications has commitments totaling $1.0 million for service
contracts.
Major Proprietary Funds
Clean Water State Revolving Fund: Department of Environment and Natural Resources has commitments
totaling $134.8 million for loan commitments with borrowers.
Drinking Water State Revolving Fund: Department of Environment and Natural Resources has commitments
totaling $64.2 million for loan commitments with borrowers.
Nonmajor Proprietary Funds
Revolving Economic Development and Initiative Fund: Governor’s Office of Economic Development has
commitments totaling $20.1 million for REDI Fund loans.
Self-Insurance Fund: Bureau of Human Resources has commitments totaling $17.7 million for claims
administration, medical management, and wellness services.
Information Services Fund: The Bureau of Information and Technology has commitments totaling $4.2 million
for encumbrances and services contracts.
Telecommunications Fund: The Bureau of Information and Technology has commitments totaling $3.1 million
for encumbrances and services contracts.
Accounting and Payroll Fund: Bureau of Finance and Management has commitments totaling $0.5 million
for various consulting fees.
Fleet and Travel Management Fund: Bureau of Administration has commitments totaling $0.9 million for fleet
vehicle leases and computer equipment.
Other Nonmajor Proprietary Funds: The total amount committed for the Other Nonmajor Proprietary Funds
is $2.3 million broken down by agency as follows:
• Department of Public Safety has commitments totaling $0.7 million to upgrade current computer
system.
• Department of Health has commitments totaling $1.6 million to act as examiner, investigator, and
inspector for various other boards and to provide administrator services.
Discretely Presented Component Units
Housing Authority: South Dakota Housing Development Authority has commitments totaling $113.1 million to fund
the Homeownership Mortgage Program.
Science and Technology Authority: South Dakota Science and Technology Authority has commitments totaling
$4.1 million for architecture engineering services and construction of new maintenance support facility.
Higher Education: Higher Education has $78.7 million of construction, renovation, and coaching contract
commitments.
South Dakota Ellsworth Development Authority: South Dakota Ellsworth Development Authority has
commitments totaling $2.3 million to operate and maintain the wastewater treatment plant.
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Uncalled Capital Commitments
The Primary Government had uncalled capital commitments to private equity and real estate limited partnerships
funds of approximately $2.2 billion. The commitments may be called at the discretion of the general partner or
may never be called. As capital is called, it is funded from capital and earnings returned by the limited
partnerships or from other assets. Approximate uncalled capital commitments as of June 30, 2020 is broken down
as follows (Expressed in Thousands):
Special Revenue Fiduciary Permanent
South Dakota
Retirement
Education System
Dakota Enhancement Health Care Pension Trust Permanent
Cement Trust Trust Trust Fund Fund TOTAL
Real Estate Funds $ 26,736 $ 48,440 $ 11,629 $ 1,166,195 $ 25,734 $ 1,278,734
Private Equity Funds 16,741 30,627 7,320 817,669 16,134 888,491
Total $ 43,477 $ 79,067 $ 18,949 $ 1,983,864 $ 41,868 $ 2,167,225
12. SELF-INSURANCE
A. Workers' Compensation Benefits and Unemployment Insurance
Various funds accumulate assets to cover risks that the State incurs in its normal operations. The State (rather than an
insurance carrier) assumes the risk associated with claims of state employees for unemployment compensation
benefits. "Premiums" charged to state funds to cover the costs of claims servicing and claims payments are based on
a percentage of wages paid to state employees. Related transactions are accounted for in the State Unemployment
Compensation Fund.
The State is self-insured for workers' compensation through the creation of reserves derived from a percentage of
wages paid to state employees. This activity is accounted for in an internal service fund. Claims payable for workers’
compensation is reported using an actuarial estimate based on historical experience that includes actual claims
submitted as well as claims incurred, but not reported. Allocated claim adjustment expenses (those relating to a specific
claim) are included in the determination of claims payable. Unallocated claim adjustment expenses are not included.
Estimated recoveries on unsettled and/or settled claims reduce claims liability and are considered in the actuarial
estimate. The claims liability is funded as claims are paid resulting in an actuarially determined unfunded liability of
$28.4 million at June 30, 2020. The Workers’ Compensation Fund liability at June 30, 2020 and the changes to the
liability during fiscal years ended June 30, 2020 and 2019 listed on the following page were as follows (Expressed in
Thousands):
FY2020 FY2019
Unpaid claims and claim adjustment expenses at beginning of fiscal year $ 31,512 $ 29,990
Incurred claims and claim adjustment expenses
Provision for insured events of current fiscal year 6,279 6,983
Changes in provision for insured events of prior fiscal years (341) (60)
Total incurred claims and claim adjustment expenses 5,938 6,923
Payments:
Claims and claim adjustment expenses attributable to insured events 1,349 2,172
of current fiscal year
Claims and claim adjustment expenses attributable to insured events 3,907 3,229
of prior fiscal year
Total payments 5,256 5,401
Unpaid claims and claim adjustment expenses at end of fiscal year $ 32,194 $ 31,512
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B. Health Insurance
The State (rather than an insurance carrier) assumes substantially all risk associated with claims of covered public
employees for health insurance (However, an insurance carrier provides claims administration services for health
insurance). The health and life insurance programs are accounted for in the Self-Insurance Fund, reported as an internal
service fund. "Premiums" are charged to state funds for all covered employees. Employees may purchase varying levels
of health and/or life coverage for their spouses and/or dependents. Effective January 1, 2014, the life insurance program
switched from being self-insured to a fully insured product. Claims payable for health insurance is reported using an
actuarial estimate based on historical experience that includes actual claims submitted as well as claims incurred, but
not reported. Allocated claim adjustment expenses are included in the determination of claims payable. Unallocated
claim adjustment expenses are not included. Estimated recoveries on unsettled and/or settled claims reduce claims
liability and are considered in the actuarial estimate. Allocated claim adjustment expenses are uncommon and
immaterial. Unallocated claim adjustment expenses are not included.
The health insurance program liability at June 30, 2020 and the changes to the liability during fiscal years ended June
30, 2020 and 2019 were as follows (Expressed in Thousands):
FY2020 FY2019
Unpaid claims and claim adjustment expenses at beginning of fiscal year $ 15,879 $ 12,696
Incurred claims and claim adjustment expenses 133,191 130,287
Payments:
Claims and claim adjustment expenses attributable to insured events
of current fiscal year 115,971 114,408
Claims and claim adjustment expenses attributable to insured events
of prior fiscal years 15,879 12,696
Total payments 131,850 127,104
Unpaid claims and claim adjustment expenses at end of fiscal year $ 17,220 $ 15,879
C. Public Entity Pool for Liability
The State is insured through a Public Entity Pool for Liability Fund (PEPL), reported as an internal service fund. The
PEPL Fund covers risks associated with automobile liability and general tort liability (including public officials' errors
and omissions liability, medical malpractice liability, law enforcement liability, and products liability).
All funds and agencies of the State participate in the PEPL Fund. The PEPL Fund allocates the cost of providing claims
servicing and claims payment by charging a "premium" to each fund and agency based on the number of automobiles
titled to each agency (for automobile liability) or approved full-time employees (for general tort liability). The PEPL Fund
initially limited claims to $1,000,000 per occurrence, subject to limitations set forth in SDCL 3-22. The State claimed
sovereign immunity for all other tort liabilities. A State Supreme Court opinion allows noneconomic damages against
employees of the State while they are performing ministerial acts; therefore, beginning in FY1996, the PEPL Fund
coverage document was amended to provide liability coverage for noneconomic damages that are the result of these
acts and commercial reinsurance was purchased. For the current fiscal year, the State purchased reinsurance for claims
costs over $500,000 with 100% of the remaining $500,000. Claims expenses and liabilities are reported when it is
probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount
for claims that have been incurred, but not reported, based on historical experience. Allocated and unallocated claim
adjustment expenses are included in the determination of claims payable. Estimated recoveries on unsettled and/or
settled claims reduce claims liability and are considered in the actuarial estimate. At the end of fiscal year 2020, $7.5
million of the net assets balance in the PEPL Fund was designated for future catastrophic losses.
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The PEPL Fund liability at June 30, 2020 and the changes to the liability during fiscal years ended June 30, 2020 and
2019 were as follows (Expressed in Thousands):
FY2020 FY2019
Unpaid claims and claim adjustment expenses at beginning of fiscal year $ 4,382 $ 4,603
Incurred claims and claim adjustment expenses
Provision for insured events of current fiscal year 1,321 1,839
Changes in provision for insured events of prior fiscal years 227 (429)
Total incurred claims and claim adjustment expenses 1,548 1,410
Payments:
Claims and claim adjustment expenses attributable to insured events
of current fiscal year 212 284
Claims and claim adjustment expenses attributable to insured events
of prior fiscal year 924 1,347
Total payments 1,136 1,631
Unpaid claims and claim adjustment expenses at end of fiscal year $ 4,794 $ 4,382
D. Risk Management
The State is commercially insured for aircraft, and crime bonds through outside insurance companies. Entities
participating in these insurance coverages are only billed for premiums applicable to their coverage needs. Prior to April
13, 2015, the State was uninsured for property losses with the exception of all bonded buildings, all higher education
facilities and buildings, and certain other revenue-producing buildings that are covered through outside insurance
companies. On April 13, 2015, additional insurance was purchased resulting in the majority of all State buildings being
covered. Beginning October 1, 2015, the South Dakota Property and Casualty Insurance Company, a component unit
of the State of South Dakota, started providing property, including content, business income, and extra expense
coverage on the State’s buildings.
13. OPERATING LEASES
The State of South Dakota has entered into numerous agreements to lease land, buildings, and equipment. Most
operating leases contain a provision that the State may renew leases on a year-to-year basis. In most cases,
management expects the leases will be renewed or replaced by other leases of a similar nature.
The following schedule is a summary of future minimum rental payments by years required under operating leases with
lease terms in excess of one year as of June 30, 2020, (Expressed in Thousands):
Year Ending Primary Component
June 30 Government Units
2021 $ 8,709 $ 2,716
2022 8,203 2,119
2023 6,354 1,728
2024 5,042 1,598
2025 4,082 347
2026-2030 12,453 142
2031-2035 1,823 53
2036-2040 17 53
2041-2045 44
Total Minimum
Payments $ 46,683 $ 8,800
The total rental expenses for all operating leases for the fiscal year ended June 30, 2020, was $20.7 million for the
primary government and $3.9 million for component units.
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14. LONG-TERM LIABILITIES
Long-term obligations at June 30, 2020, and changes to long-term liabilities during the fiscal year then ended are as
follows (Expressed in Thousands):
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Governmental Activities *
Revenue Bonds $ 148,645 $ 7,130 $ (20,104) $ 135,671 $ 14,099
Add Unamortized Premium 12,194 (1,101) 11,093 1,070
Net Revenue Bonds 160,839 7,130 (21,205) 146,764 15,169
Compensated Absences 61,564 42,166 (38,685) 65,045 34,667
Policy Claims Liability 4,382 1,548 (1,136) 4,794 1,701
Workers Compensation 31,517 5,938 (5,224) 32,231 4,063
Capital Leases 136,417 5,826 (8,891) 133,352 7,925
Pollution Remediation Obligation 12,246 500 (100) 12,646 350
Escheat Property 15,788 38,142 (19,153) 34,777 24,036
Other Long Term Liabilities 106 54 (52) 108 53
Total Governmental Activities $ 422,859 $ 101,304 $ (94,446) $ 429,717 $ 87,964
Business-type Activities
Revenue Bonds $ 329,865 $ $ (21,705) $ 308,160 $ 20,630
Add Unamortized Premium 45,938 (2,796) 43,142 2,796
Net Revenue Bonds 375,803 (24,501) 351,302 23,426
Other Noncurrent Liabilities 831 471 1,302
Compensated Absences 1,662 969 (846) 1,785 948
Total Business-type Activities $ 378,296 $ 1,440 $ (25,347) $ 354,389 $ 24,374
Component Units
Revenue Bonds $ 1,608,535 $ 279,980 $ (228,149) $ 1,660,366 $ 75,689
Less Unamortized Discount (83) 4 (79) 4
Add Unamortized Premium 66,475 9,037 (11,033) 64,479 2,728
Direct Placement Bonds 127,540 (22,515) 105,025 1,525
Net Revenue Bonds 1,802,467 289,017 (261,693) 1,829,791 79,946
Compensated Absences 44,743 17,140 (15,057) 46,826 15,209
Capital Leases 7,342 4,702 (2,003) 10,041 1,959
Rural Development Loans 1,385 (85) 1,300 83
Federal Portion of Perkins
Loan Program 39,792 1,538 (4,726) 36,604
Advances from Primary Government 20,209 (1,025) 19,184 1,057
Total Component Units $ 1,915,938 $ 312,397 $ (284,589) $ 1,943,746 $ 98,254
* Governmental Activities Other Long-Term Obligations - The General Fund, special revenue, and internal service funds in which the
leases are recorded will liquidate the capital lease obligations. The General Fund, special revenue, and internal service funds that
account for the salaries, wages, and employer pension contributions of the related employees will liquidate the compensated
absences and net pension liability. The workers’ compensation and policy claims liabilities will be liquidated by applicable internal
service funds which will ultimately be billed out to the applicable funds that account for the salaries and wages of the related
employees. The pollution remediation obligations will be liquidated by the Petroleum Release Compensation Fund and the
Department of Environment and Natural Resources – Other Fund. The escheat property obligation will be liquidated by the State’s
General Fund.
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Revenue Bonds and Trust Certificates
A. Governmental Activities
1. South Dakota Building Authority
The South Dakota Building Authority (SDBA) issues bonds and trust certificates to finance the cost to acquire, construct,
remodel, maintain, and equip buildings and other facilities of state departments and institutions. Bonds and
certificates of participation are payable from revenues generated through lease agreements between the SDBA and
state departments and institutions. Lease payments for bonds are paid from the General Fund and other state dedicated
fees of state departments, boards, and commissions.
The indebtedness or obligations incurred or created by the SDBA may not be or become a lien, charge, or liability
against the State of South Dakota. This financial presentation does not change the legal liability of the indebtedness.
Following are SDBA bonds outstanding at June 30, 2020, (Dollars Expressed in Thousands):
Maturity Interest
Bond Series Through Rates Amount
2010B 2035 4.580% - 6.200% $ 3,815
2013D 2023 3.630%-5.769% 420
2014A 2029 5.000% 1,290
2014D 2026 4.500% - 5.000% 4,629
2014E 2027 4.000% - 5.000% 2,537
2015A 2030 2.591% - 4.013% 8,155
2017A 2040 4.000% - 5.000% 41,595
2019B 2038 1.934% - 3.201% 7,075
Add Unamortized Premium 6,699
Total $ 76,215
As of June 30, 2020, debt service requirements for principal and interest for the SDBA were as follows (Expressed in
Thousands):
Year Ended
June 30 Principal Interest Total
2021 $ 3,799 $ 3,073 $ 6,872
2022 3,934 2,928 6,862
2023 4,078 2,773 6,851
2024 4,248 2,609 6,857
2025 4,420 2,424 6,844
2026-2030 20,767 9,201 29,968
2031-2035 14,555 5,377 19,932
2036-2040 13,715 1,886 15,601
Total $ 69,516 $ 30,271 $ 99,787
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2. Educational Enhancement Funding Corporation
During the 2001 Legislative Session, the Legislature authorized the South Dakota Building Authority to provide for the
establishment of a corporation for the purpose of selling a portion or all the State’s rights, title, and interest in the
proceeds of the tobacco companies master settlement agreement. On July 26, 2002, the Educational Enhancement
Funding Corporation was created pursuant to South Dakota Codified Law 5-12-48 through 5-12-60. The State of South
Dakota gave up its rights to any proceeds of the tobacco companies master settlement agreement while the bonds are
outstanding, or over the term of the bonds, whichever is shorter.
Following are Educational Enhancement Funding Corporation bonds outstanding at June 30, 2020, (Dollars Expressed
in Thousands):
Maturity Interest
Bond Series Through Rates Amount
2013A 2022 3.539% $ 19,520
2013B 2027 5.000% 46,635
Add Unamortized Premium 4,394
Total $ 70,549
As of June 30, 2020, debt service requirements for principal and interest for the Educational Enhancement Funding
Corporation were as follows (Expressed in Thousands):
Year Ended
June 30 Principal Interest Total
2021 $ 10,300 $ 3,022 $ 13,322
2022 9,220 2,658 11,878
2023 9,970 2,332 12,302
2024 9,905 1,833 11,738
2025 9,865 1,338 11,203
2026-2027 16,895 1,197 18,092
Total $ 66,155 $ 12,380 $ 78,535
B. Business-type Activities
South Dakota Conservancy District - State Revolving Funds
The South Dakota Conservancy District issued tax-exempt revenue bonds for the Clean Water State Revolving Fund
(CWSRF) and for the Drinking Water State Revolving Fund (DWSRF). The SRF’s provide low interest loans or other
types of financial assistance to political units for the construction of publicly-owned wastewater treatment facilities,
implementation of nonpoint source management programs, development and implementation of plans under the
Estuary Protection Program, and construction and maintenance of drinking water facilities. To date, the programs have
been used to make loans and refinance existing debt with a maximum of twenty years for repayment. Loans for the
DWSRF can be made for 30 years, if the funds are for a disadvantaged community.
The South Dakota Conservancy District bonds do not constitute a debt or liability of the State of South Dakota, or a
pledge of the faith and credit of the State. This financial presentation does not change the legal liability of the
indebtedness.
101
The following is a schedule of outstanding bonds as of June 30, 2020, (Dollars Expressed in Thousands):
Bond Maturity Interest
Series Through Rates Amount
Clean Water State Revolving Fund
2010AB 2030-2031 4.084%-5.646% $ 29,039
2012A 2027 1.898%-3.183% 19,145
2012B 2023-2031 4.000%-5.000% 9,510
2014B 2035 5.000% 37,200
2017A 2023 1.593%-2.149% 4,245
2017B 2030-2038 2.000%-5.000% 62,625
2018 2039 5.000% 56,190
Add Unamortized Premium 33,110
Total 251,064
Drinking Water State Revolving Fund
2010AB 2030-2031 2.000%-5.646% 15,326
2012A 2027 1.898%-3.183% 13,710
2014B 2035 5.000% 4,940
2017A 2023 1.786%-2.149% 5,485
2017B 2030-2038 5.000% 12,430
2018 2039 5.000% 38,315
Add Unamortized Premium 10,032
Total 100,238
Total Revenue Bonds $ 351,302
As of June 30, 2020, debt service requirements for principal and interest for the CWSRF and the DWSRF were as
follows (Expressed in Thousands):
Year Ended
June 30 Principal Interest Total
Clean Water State Revolving Fund
2021 $ 13,115 $ 9,979 $ 23,094
2022 14,685 9,455 24,140
2023 15,335 8,842 24,177
2024 14,075 8,202 22,277
2025 14,560 7,552 22,112
2026-2030 67,659 27,689 95,348
2031-3035 54,275 12,406 66,681
2036-2040 24,250 2,294 26,544
Total 217,954 86,419 304,373
Drinking Water State Revolving Fund
2021 7,515 3,900 11,415
2022 7,740 3,653 11,393
2023 8,140 3,379 11,519
2024 6,315 3,109 9,424
2025 6,425 2,848 9,273
2026-2030 23,816 10,669 34,485
2031-2035 16,995 5,432 22,427
2036-2040 13,260 1,313 14,573
Total 90,206 34,303 124,509
Total $ 308,160 $ 120,722 $ 428,882
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C. Component Units
1. South Dakota Housing Development Authority
The South Dakota Housing Development Authority (SDHDA) provides mortgage financing for construction,
rehabilitation, and purchase of residential housing and assists in coordinating with federal, state, regional, and local
public and private efforts with statewide housing planning. The SDHDA issues negotiable notes and bonds in amounts
authorized by the Governor of South Dakota. Notes and bonds of the SDHDA do not constitute a debt or liability of the
State of South Dakota, or a pledge of the faith and credit of the State. These notes and bonds are payable solely from
the revenues or assets of the SDHDA.
Following is a schedule of bonds, consolidated by category, outstanding at June 30, 2020, (Dollars Expressed in
Thousands):
Maturity Interest Amount
Home-Ownership Mortgage
Program Bonds 2020-2050 0.13%-4.50%
Serial Bonds $ 399,090
Term Bonds 744,322
Term Direct Placement Bonds 75,000
Add Unamortized Premium 25,994
Total 1,244,406
Single Family Mortgage Bonds 2019-2041 1.85%-5.00%
Serial Bonds 16,915
Term Bonds 25,260
Term Direct Placement Bonds 16,700
Add Unamortized Premium 500
Total 59,375
Multiple Purpose Bonds 2020-2048 0.25%-3.65%
Serial Bonds 1,875
Term Bonds 12,880
Total 14,755
Total Bonds $ 1,318,536
As of June 30, 2020, debt service requirements for principal and interest for the SDHDA were as follows (Expressed in
Thousands):
Year Ended Bonds Direct Placement Bonds
June 30 Principal Interest Principal Interest Total
2021 $ 51,582 $ 36,818 $ $ 1,644 $ 90,044
2022 55,825 35,490 1,644 92,959
2023 53,265 34,325 1,645 89,235
2024 53,445 33,078 1,645 88,168
2025 51,340 31,742 1,645 84,727
2026-2030 212,336 139,673 12,015 8,177 372,201
2031-2035 190,070 108,499 49,105 5,612 353,286
2036-2040 171,720 79,033 27,750 1,344 279,847
2041-2045 201,394 47,888 2,830 70 252,182
2046-2050 158,980 10,723 169,703
2051-2055 385 7 392
Total $ 1,200,342 $ 557,276 $ 91,700 $ 23,426 $ 1,872,744
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2. South Dakota Economic Development Finance Authority
The South Dakota Economic Development Finance Authority (EDFA) was established for the purpose of making loans
to businesses for the acquisition and/or construction of land, buildings, machinery and equipment to spawn economic
growth. The EDFA is authorized by South Dakota Codified Law to provide sufficient funds for achieving any of its
corporate purposes. The total outstanding amount of such notes and bonds shall not exceed $300.0 million at any time.
No obligation issued by the EDFA shall constitute debt or liability or obligation of the State of South Dakota, or any
political subdivision or a pledge of the faith and credit of the State or any political subdivision.
The EDFA issues pooled and stand-alone bond issues. A pooled bond issue is secured by the EDFA’s Capital Reserve
Account. A stand-alone issue is based solely on the credit of the borrower and the EDFA acts only as a conduit to the
financing. Therefore, the debt is not included in the accompanying financial statements.
The pooled bond issues require amounts to be deposited into the Capital Reserve Account. The money on deposit in
the Capital Reserve Account is irrevocably pledged to the payment of all outstanding bonds and interest only when and
to the extent that other monies are not available. The amount on deposit in the Capital Reserve Account must be equal
to 12.5% of the related bond principal outstanding. Amounts in excess of the reserve requirements may be transferred
to any state fund to be used for other purposes. At June 30, 2020, the balance in the Capital Reserve Account was $5.0
million and the reserve requirement was $1.0 million.
The following is a schedule of outstanding bonds as of June 30, 2020, (Dollars Expressed in Thousands):
Maturity Interest
Bond Series Through Rates Amount
2013A 2021-2033 4.000%-5.800% $ 7,555
Total $ 7,555
As of June 30, 2020, debt service requirements for principal and interest for the EDFA were as follows (Expressed in
Thousands):
Year Ended
June 30 Principal Interest Total
2021 $ 420 $ 420 $ 840
2022 435 404 839
2023 455 383 838
2024 480 362 842
2025 505 334 839
2026-2030 3,005 1,197 4,202
2031-2033 2,255 267 2,522
Total $ 7,555 $ 3,367 $ 10,922
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3. Higher Education
a. Higher Education Facilities
Revenue bonds were issued for the purpose of constructing buildings. The bonds are payable only from and secured
by a pledge of net revenues of the University Housing and Auxiliary Facilities System. Net revenue is defined as gross
revenue, less reasonable and necessary costs of currently maintaining, repairing, insuring, and operating the University
Housing and Auxiliary Facilities System. Total net revenue pledges for fiscal year 2020 equaled $34.4 million. Following
are revenue bonds outstanding at June 30, 2020, (Dollars Expressed in Thousands):
Maturity Interest
Bond Series Through Rates Amount
School of Mines and Technology
2008B Direct Placement 2028 4.550% $ 2,170
2014A 2039 4.000%-5.000% 5,805
2014B 2033 5.000% 4,890
2017A 2042 4.000%-5.000% 15,925
Add Unamortized Premium 2,827
University of South Dakota
2013A 2028 3.000%-5.000% 7,270
2015 2030 4.000%-5.000% 7,265
2017A 2039 4.000%-5.000% 31,335
Add Unamortized Premium 5,632
South Dakota State University
2006 Direct Placement 2026 3.920% 3,075
2011 2036 3.625%-5.000% 45,910
2014A 2025 5.000% 11,960
2015 2030 4.000%-5.000% 1,450
2016 2041 4.000%-5.000% 11,850
2017A 2042 4.000%-5.000% 36,325
Less Unamortized Discount (79)
Add Unamortized Premium 8,778
Northern State University
2008B Direct Placement 2028 4.550% 575
2011 2021 3.625%-5.000% 195
2014B 2029 5.000% 2,515
2016 2041 4.000%-5.000% 6,260
2017A 2034 5.000% 870
2019B 2036 2.150%-3.350% 4,535
Add Unamortized Premium 810
Dakota State University
2007 Direct Placement 2029 3.880% 210
2008 Direct Placement 2028 3.880% 2,345
2014B 2025 5.000% 860
2015 2040 4.000%-5.000% 9,990
2019A 2044 3.000%-5.000% 11,620
Add Unamortized Premium 2,476
Black Hills State University
2006 Direct Placement 2026 3.920% 500
2007 Direct Placement 2029 3.880% 4,450
2014A 2039 4.000%-5.000% 7,595
2014B 2026 5.000% 1,020
Add Unamortized Premium 485
Total $ 259,699
105
As of June 30, 2020, debt service requirements for principal and interest were as follows (Expressed in Thousands):
Year Ended Bonds Direct Placement Bonds
June 30 Principal Interest Principal Interest Total
2021 $ 11,510 $ 10,348 $ 1,525 $ 528 $ 23,911
2022 12,240 9,801 1,595 467 24,103
2023 12,875 9,202 1,650 402 24,129
2024 13,175 8,579 1,725 335 23,814
2025 13,815 7,939 1,795 266 23,815
2026-2030 60,365 30,964 5,035 388 96,752
2031-2035 59,785 16,460 76,245
2036-2040 34,105 5,089 39,194
2041-2045 7,575 478 8,053
Total $ 225,445 $ 98,860 $ 13,325 $ 2,386 $ 340,016
b. South Dakota Building Authority (Higher Education Portion)
The South Dakota Building Authority issues bonds and trust certificates to finance the cost to acquire, construct,
remodel, maintain, and equip buildings and other facilities for Higher Education institutions. Lease payments are made
from tuition and fees paid by students. The obligations incurred or created by the South Dakota Building Authority may
not be a lien, charge, or liability against the State of South Dakota.
Following is a schedule of bonds outstanding at June 30, 2020, (Dollars Expressed in Thousands):
Bond Maturity Interest
Series Through Rates Amount
Revenue Bonds
2010A 2027 4.550%-5.650% $ 5,030
2010B 2035 4.580%-6.200% 8,970
2011A 2026 4.000%-5.000% 3,780
2012A 2028 2.250%-5.000% 6,025
2013B 2038 5.00% 8,065
2014A 2039 5.00% 30,365
2014B 2029 5.000% 5,250
2014C 2020 2.40% 650
2014D 2026 4.500%-5.000% 926
2014E 2032 4.000%-5.000% 22,843
2014F 2032 3.050%-4.700% 6,210
2015B 2040 5.000% 9,620
2017A 2042 4.000%-5.000% 10,630
2018A 2040 4.000%-5.000% 28,140
2019A 2034 4.000%-5.000% 15,165
2019B 2038 1.934%-3.201% 65,355
Add Unamortized Premium 16,977
Total Revenue Bonds $ 244,001
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As of June 30, 2020, debt service requirements for principal and interest for the South Dakota Building Authority (Higher
Education portion) were as follows (Expressed in Thousands):
Year Ended
June 30 Principal Interest Total
2021 $ 12,176 $ 9,579 $ 21,755
2022 12,706 9,046 21,752
2023 13,047 8,485 21,532
2024 13,631 7,906 21,537
2025 14,136 7,376 21,512
2026-2030 67,253 28,394 95,647
2031-2035 57,475 15,064 72,539
2036-2040 35,120 4,383 39,503
2041-2045 1,480 112 1,592
Total $ 227,024 $ 90,345 $ 317,369
Capital Leases
The State has entered into various agreements to lease buildings, vehicles, and equipment. GASB standards require a
lease that transfers substantially all the benefits and risks of ownership to the lessee be accounted for as the acquisition
of a capital asset and the incurrence of an obligation by the lessee (a capital lease).
Capital lease obligations are recorded as liabilities in the Government-wide and Proprietary Fund Financial Statements.
The following schedule is a summary of the future minimum lease payments under capital leases, together with the
present value of the net minimum lease payments as of June 30, 2020, (Expressed in Thousands):
Year Ended Governmental Component
June 30 Activities Units
2021 $ 14,262 $ 2,373
2022 13,342 1,564
2023 11,983 1,313
2024 11,734 2,838
2025 11,140 438
2026-2030 47,702 2,135
2031-2035 45,723 907
2036-2040 33,141 286
2041-2045 17,442 286
2046-2050 7,992 115
Total Minimum Lease Payments 214,461 12,255
Less: Amount Representing Interest 81,109 2,214
Present Value of Net Minimum
Lease Payments $ 133,352 $ 10,041
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The historical cost and depreciation of assets under capital leases and included in capital assets on the Government-
wide Financial Statements at June 30, 2020, are as follows (Expressed in Thousands):
Governmental
Activities
Land $ 614
Land Improvements 1,205
Buildings 139,395
Equipment 5,062
Vehicles 27,128
Total 173,404
Less: Accumulated Depreciation 42,675
Total, Net $ 130,729
Conduit Debt Obligations
Conduit debt obligations are certain limited-obligation revenue bonds, certificates of participation, or similar debt
instruments issued by state governments for the express purpose of providing capital financing for a specific third party
that is not a part of the issuer’s financial reporting entity. The State has no obligation for such debt beyond the resources
provided by a lease or loan with the third party on whose behalf they are issued and the debt is not included in the
accompanying financial statements.
1. South Dakota Value Added Finance Authority
The South Dakota Value Added Finance Authority provides low interest financing to agricultural enterprises in the State
of South Dakota. The loans can be used to acquire agricultural property. The Authority is authorized to issue federal
tax-exempt bonds. The bond proceeds are lent to qualifying applicants. The applicant assumes the bond payment
obligation to the bond purchaser in the form of a loan with the third party bond purchaser.
As of June 30, 2020, there were 115 Beginning Farmer Bond Program series Revenue Bonds outstanding. The
aggregate principal amount payable on June 30, 2020, could not be determined; however, the original issue amount
totaled $23.6 million.
As of June 30, 2020, there were 5 Agribusiness Bonding Program series Revenue Bonds outstanding. The aggregate
principal amount payable on June 30, 2020, could not be determined; however, the original issue amount totaled $8.6
million.
As of June 30, 2020, there were 20 Livestock Nutrient Management Bond Program series Revenue Bonds outstanding.
The aggregate principal amount payable on June 30, 2020, could not be determined; however, the original issue amount
totaled $17.4 million.
As part of the American Recovery and Reinvestment Act, the South Dakota Value Added Finance Authority issued 3
recovery zone bonds in state fiscal year 2011. The outstanding balance at June 30, 2020, could not be determined;
however, the original issue amount totaled $24.8 million.
2. South Dakota Housing Development Authority
The Authority has issued certain conduit debt bonds under the Multifamily Housing Revenue Bonds Resolution adopted
April 15, 1991, the proceeds of which were made available to developers for the construction or rehabilitation of
multifamily housing. The bonds and the interest thereon are a limited obligation of the issuer, payable solely from the
trust estate pledged therefor under this indenture. The faith and credit of the Authority is not pledged for the payment
of the principal and interest on the bonds. Accordingly, these obligations are excluded from the Authority’s financial
statements.
As of June 30, 2020, the aggregate principal amount of conduit debt outstanding totaled $28.6 million.
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Refunded and Defeased Bonds
1. South Dakota Building Authority
The Authority has entered into refunding transactions whereby refunding bonds have been issued to facilitate
defeasance of the Authority's obligation with respect to certain bond issues. The proceeds of the refunding issues have
been placed in irrevocable escrow accounts and invested in U.S. Treasury obligations that, together with interest earned
thereon, will provide amounts sufficient for future payments of interest and principal on the issues being refunded.
Refunded bonds and the related assets held in the trust are not included in the accompanying financial statements
since the Authority has satisfied its obligations with respect thereto through consummation of the refunding transactions.
On November 20, 2019, the Authority issued $3.0 million in Taxable Revenue Bonds Series 2019B to advance refund
the Series 2010C bonds. The refunding portion with an average interest rate of 2.5% was used to refund $2.5 million of
outstanding Series 2010C bonds with an average interest rate of 5.3%. The net proceeds of the refunding portion of
$2.7 million were used to escrow the refunded Series 2010C bonds (after payment of $27.2 thousand in underwriting
fees and other issuance costs and transfer of $0.4 million in savings to the State General Fund). As a result, the refunded
Series 2010C bonds are considered to be defeased and the liability for those bonds has been removed from the
Statement of Net Position.
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old
debt of $0.1 million. This difference is being charged to operations through fiscal year 2031 using the effective-interest
method. The Authority completed the advance refunding for a net economic gain of $0.1 million. The difference between
the cash flows of the refunded bonds and the refunding bonds is a $0.1 million reduction in debt service payments, the
actual cash amount realized was $0.4 million.
On November 20, 2019, the Authority issued $65.8 million in Taxable Revenue Bonds Series 2019B to refund a portion
of the Series 2013B bonds. The refunding portion with an average interest rate of 2.9% was used to refund $54.5 million
of outstanding Series 2013B bonds with an average interest rate of 5.0%. The net proceeds of the refunding portion of
$62.2 million were used to call the refunded Series 2013B bonds (after payment of $0.6 million in underwriting fees and
other issuance costs and transfer of $4.4 million in savings to the State General Fund). As a result, the refunded Series
2013B bonds are considered to be defeased and the liability for those bonds has been removed from the Statement of
Net Position.
The current refunding resulted in a difference between the reacquisition price and the net carrying amount of the old
debt of $3.9 million. This difference is being charged to operations through fiscal year 2026 using the effective-interest
method. The Authority completed the advance refunding for a net economic gain of $1.4 million. The difference between
the cash flows of the refunded bonds and the refunding bonds is a $1.4 million reduction in debt service payments, the
actual cash amount realized was $4.4 million.
On November 20, 2019, the Authority issued $4.1 million in Taxable Revenue Bonds Series 2019B to refund a portion
of the Series 2013D bonds. The refunding portion with an average interest rate of 2.9% was used to refund $3.3 million
of outstanding Series 2013D bonds with an average interest rate of 5.5%. The net proceeds of the refunding portion of
$3.8 million were used to call the refunded Series 2013D bonds (after payment of $37.6 thousand in underwriting fees
and other issuance costs and transfer of $0.4 million in savings to the State General Fund). As a result, the refunded
Series 2013D bonds are considered to be defeased and the liability for those bonds has been removed from the
Statement of Net Position.
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old
debt of $0.5 million. This difference is being charged to operations through fiscal year 2038 using the effective-interest
method. The Authority completed the advance refunding for a net economic gain of $0.1 million. The difference between
the cashflows of the refunded bonds and the refunding bonds is a $0.1 million reduction in debt service payments, the
actual cash amount realized was $0.4 million.
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Fully defeased bonds not yet paid to bondholders as of June 30, 2020, are as follows (Expressed in Thousands):
Bond Issues Year of Defeasance Debt Outstanding
Series 2013B 2019 $ 54,495
Series 2013D 2019 32,280
Total $ 86,775
Series 2010B that were held in escrow were called on June 1, 2020.
Series 2013B and 2013D bonds that were escrowed will be called on June 1, 2023.
2. South Dakota Housing Development Authority
In February 2020, the Authority issued $4.7 million of fixed rate Homeownership Mortgage Bonds, 2020 Series A (the
Refunding bonds). The Refunding Bonds, totaling $4.7 million, along with premium generated from the bond sale, were
used to refund $4.7 million of Single-Family Mortgage Bonds, 2010 Series 1 (the Refunded Bonds). The purpose of the
refunding was to reduce the Authority’s borrowing cost on debt that was optionally redeemable at par, which decreased
total debt service payments by approximately $0.7 million. Assuming a mortgage prepayment speed of 100% FHA, the
difference between the present value of the cash flow required for debt service of the Refunding Bonds and the
Refunded Bonds, net of cost of issuance, will result in an economic gain of approximately $0.3 million.
During the year ended June 30, 2020, the Authority issued Homeownership Mortgage Bonds Series 2019B and 2020AB
in the aggregate principle amount of $99.0 million and $99.0 million, respectively, of which $26.1 million and $49.8
million, respectively, of bond proceeds were used to refund previously issued bonds for the sole purpose of recycling
the volume cap utilized for the issuance of the refunded bonds.
3. South Dakota Conservancy District - State Revolving Funds
Clean Water State Revolving Fund
Fully defeased bonds not yet paid to bondholders as of June 30, 2020, are as follows:
Bond Issues Year of Defeasance Debt Outstanding
Series 2012B (01) 2018 $ 725
Series 2010B (08) 2018 5,186
Series 2012B 2018 26,190
Total $ 32,101
Series 2010B (08) that was escrowed will be called on August 1, 2020.
Series 2012B (01) and Series 2012B that were escrowed will be called on August 1, 2022.
Drinking Water State Revolving Fund
Fully defeased bonds not yet paid to bondholders as of June 30, 2020, are as follows:
Bond Issues Year of Defeasance Debt Outstanding
Series 2012B (01) 2018 $ 790
Series 2010B (08) 2018 4,254
Total $ 5,044
Series 2010B (08) that were escrowed will be called on August 1, 2020.
Series 2012B (01) that were escrowed will be called on August 1, 2022.
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4. Higher Education and the South Dakota Board of Regents
In December 2019, the South Dakota Board of Regents (SDBOR) issued $4.6 million in Revenue Bonds Series 2019B
to advance refund a portion of the Series 2011 bonds. The refunding portion with an average interest rate of 3.2% was
used to refund $4.3 million of outstanding Northern State University bonds. The net proceeds of the refunding portion
of $4.5 million (after payment of $0.1 million in underwriting fees and other issuance costs) were deposited in an
irrevocable trust with an escrow agent to provide for all of the future debt service payments on the refunded portion of
the Series 2011 Bonds. Escrow balance as of June 30,2020 was $4.4 million. As a result, the refunded portion of the
Series 2011 bonds are considered to be defeased and the liability for those bonds has been removed from the
Statement of Net Position.
The purpose of the advanced refunding was to reduce the SDBOR borrowing cost on debt that will be optionally
redeemable at par on April 1, 2020, which decreased total debt service payments by $0.3 million. This resulted in a
present value savings on the bonds of $0.2 million.
Pollution Remediation Obligations
The State has pollution remediation obligation liabilities as of June 30, 2020, of $12.6 million.
1. Gilt Edge Superfund Site
The State of South Dakota, acting through the Department of Environment and Natural Resources, has contracted with
the United States Environmental Protection Agency (EPA) for participation in the reclamation and remediation of the
former Brohm Mine, the Gilt Edge Superfund Site in Lawrence County. The EPA’s current estimate of total cleanup cost
is $178.1 million. The total amount of cleanup costs that the State needs to match an estimated $158.5 million. The
State is required by law to pay 10% of the total costs of reclamation and remediation of the site, which is estimated to
be $15.9 million. The State has already spent approximately $6.6 million with an estimated remaining outstanding
liability as of June 30, 2020 of $9.3 million. The State’s contribution to the costs of reclamation and remediation will
come from the Regulated Response Fund, which has a cash balance of $2.4 million, but will grow with future penalties
collected for environmental violations deposited into the fund and interest earned on the cash deposit. After EPA
completes its involvement at the site, the State will take control of the site and use the reclamation bond and settlement
money to pay 100% of the ongoing water treatment costs. The State had a cash balance of approximately $8.5 million
from the cash reclamation bond deposited by Brohm and $10.3 million in cash settlements as of June 30, 2020.
However, actual costs incurred when the State takes control of the site cannot be anticipated at this time because the
final cleanup action has not been determined yet.
2. Petroleum Release Compensation Fund
The Petroleum Release Compensation Fund (PRCF) provides reimbursement for remediation of sites where a
petroleum release has occurred. This fund and the requirement that the State provide reimbursement were established
under SDCL 34A-13. As of June 30, 2020, PRCF was currently involved with 39 active cases, 21 active/monitoring
cases, and 8 pending cases (spill report not yet filed), for a total of 68 cases. The estimated cost remaining for sites that
have received at least one payment is $0.4 million, the estimated cost for sites that haven’t received any payments is
$2.3 million and the estimated cost for the Abandoned Tank Removal Program is $0.6 million. The total liability as of
June 30, 2020 for this program is $3.4 million. The cash balance in the PRCF on June 30, 2020 is $5.2 million.
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15. FUNCTIONAL DISTRIBUTION OF HIGHER EDUCATION
OPERATING EXPENSES
The operating expenses on the Statement of Revenues, Expenses, and Changes in Net Position are presented in natural
classifications. The following table presents those same expenses in functional classifications for Higher Education
(excluding Foundations) as of June 30, 2020, as recommended by NACUBO (Expressed in Thousands):
Supplies & Non- Interest &
Personal Capitalized Grants & Other
Function Services Travel Contractual Equipment Subsidies Expenses Depreciation Total
Instruction $ 212,071 $ 2,367 $ 12,663 $ 7,022 $ 661 $ 1 $ 6,470 $ 241,255
Research 47,656 2,019 7,019 11,056 9,773 4,905 82,428
Public Service 34,537 1,439 6,053 4,693 1,333 1 254 48,310
Academic Support 52,779 722 9,716 5,980 23 1,961 71,181
Student Services 51,539 6,711 10,204 6,712 3,166 19 1,329 79,680
Institutional Support 54,356 624 18,934 2,379 2,651 2,407 3,255 84,606
O&M of Plant 32,515 335 13,097 7,572 1 2 37,650 91,172
Scholarships and
Fellowships 1,057 5 7 88 27,155 107 28,419
Auxilliary Enterprises 14,443 58 32,626 9,420 2 2,577 59,126
Other 156 1,732 1,888
Total $ 500,953 $ 14,280 $ 110,319 $ 54,922 $ 44,765 $ 2,693 $ 60,133 $ 788,065
16. POSTSECONDARY TECHNICAL INSTITUTE SYSTEM
The primary government has an ongoing financial responsibility for funding the four postsecondary technical institutes.
The postsecondary technical institutes are considered part of the local school districts in the district where they are
located. The oversight of the postsecondary technical institutes resides within the primary government through the
South Dakota Board of Technical Education (SDBTE). The SDBTE provides overall policies, goals, and objectives for
the management of the postsecondary technical institutes. The SDBTE consists of nine members appointed by the
Governor. The SDBTE may adopt rules governing the operation of the postsecondary technical institutes including
curriculum, tuition payments and other charges, and plans for construction or renovation of facilities. During fiscal year
2020, the State provided $26.7 million in General Fund state aid payments to the postsecondary technical institutes.
Construction and renovation of facilities at the postsecondary technical institutes is funded with proceeds from debt
issued by the Health and Educational Facilities Authority (HEFA). HEFA was created as a public instrumentality of the
State to provide tax-exempt revenue bonds, notes, or other obligations on behalf of nonprofit health and educational
institutions within the State. Although the primary government appoints a voting majority of HEFA’s board, the State’s
accountability for this organization does not extend beyond making the appointments and is considered a related
organization of the State.
The State enters into lease purchase agreements with HEFA and sub-leases the facilities at the postsecondary technical
institutes to the school districts. The State makes lease payments to HEFA from a combination of General Fund
appropriations, interest earnings from a special revenue fund, and from student facility fees collected by the
postsecondary technical institutes and remitted to the State. Upon completion of payments under the lease agreements,
titles to the facilities pass to the State. The sub-lease agreements with the school districts are then extended annually
as long as the school districts pay the State $100 per year and continue to use the facilities for postsecondary technical
education. Facilities constructed or renovated and the lease purchase agreements between the State and HEFA are
reported under the governmental activities column in the Government-wide Statement of Net Position.
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17. TAX ABATEMENTS
The Reinvestment Payment Program is an economic development program authorized under SDCL 1-16G-56 to 1-
16G-68. The program is designed to promote new employment opportunities and increase property tax revenues in
South Dakota by offsetting the costs associated with relocation or expansion of operations and/or the upgrading of
equipment in South Dakota through the reimbursement of South Dakota sales and use tax that has been paid on
approved projects. The program is intended for projects that would not have occurred without the reimbursement
payment.
The Reinvestment Payment Program is administered by the Governor’s Office of Economic Development (GOED) with
qualifying projects being approved by the Board of Economic Development. Companies pursuing new or expanded
facilities with total project costs exceeding $20 million, or equipment upgrade costs exceeding $2 million are eligible for
program consideration upon timely completion of an application. A key criterion considered when approving or denying
an application is the likelihood the project would have occurred without the reimbursement payment. The Board of
Economic Development can approve individual projects from the application for a reimbursement payment that is equal
to or less than South Dakota sales and use tax paid on the project costs. All sales and use tax must continue to be paid
on the approved projects. Reimbursement payments are made after the project is complete and cannot exceed actual
sales and use tax paid.
During fiscal year 2020, the State abated $19.3 million of sales and use tax as estimated reimbursement amounts for
approved projects that have not met all the reimbursement criteria. The State reimbursed $9.0 million of sales and use
tax during fiscal year 2020, all of which was abated in prior fiscal years.
18. RELATED PARTY TRANSACTIONS
The following transactions occurred between the State and external entities:
The Enterprise 605, Inc. (E605) is a South Dakota non-profit corporation created for the purpose of promoting
economic interests and economic development in the State of South Dakota. Its mission is to foster entrepreneurship
opportunities, the expansion of businesses, and supporting the growth and development of business concerns within
the State.
The Governor’s Office of Economic Development (GOED) provides certain staff services and related support for E605’s
programs out of GOED funds. On June 3, 2016, GOED and E605 entered into a separate Letter of Agreement in which
GOED pledged $7.0 million in Future Funds to support E605’s mission. On November 28, 2018 the Letter of Agreement
was amended, reducing the amount of pledged Future Funds to $6.0 million. As of June 30, 2019, all the funds were
disbursed. On November 1, 2019, E605 returned $1.5 million of unused funds to GOED.
The following transactions occurred between the State and discretely presented component units:
Higher Education consists of six state public universities (Black Hills State University, Dakota State University,
Northern State University, South Dakota School of Mines and Technology, South Dakota State University, and
University of South Dakota), two schools serving special K-12 populations (South Dakota School for the Deaf and South
Dakota School for the Blind and Visually Impaired), and the governing board, South Dakota Board of Regents (BOR).
Higher Education is considered a discretely presented component unit of the State.
In fiscal year 2020, $229.5 million of State appropriations was used to support state-run universities, which are reported
under Higher Education.
In 2018 the South Dakota Corn Utilization Council (SDCUC) executed a letter of commitment to provide $2.0 million to
the South Dakota State University (SDSU) for the creation of a South Dakota Corn Endowed Chair Position in the
Precision Agriculture Program at SDSU. As of June 30, 2020, SDCUC has distributed $1.0 million to SDSU and $1.0
million remains to be distributed for this commitment. Additionally, in 2019 SDCUC executed a letter of commitment to
provide SDSU with $1.0 million over a four-year period beginning June 2020. This commitment is designated for the
renovation of research space within an agricultural hall at SDSU. As of June 30, 2020, there have been no payments
made on this commitment.
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The general fund appropriation to GOED includes amounts to be used to fund Research Centers at various universities
around the state. Total funds disbursed to Higher Education was $3.7 million.
The South Dakota Ellsworth Development Authority (SDEDA) was created for the purpose of protecting and
promoting the economic impact of Ellsworth Air Force Base and associated industries, and to promote the health and
safety of those living or working near the base. SDEDA is considered a discretely presented component unit of the
State.
At June 30, 2020, the SDEDA has $1.2 million loan payable to the State Department of Environment and Natural
Resources and $18.0 million loan payable to the Clean Water State Revolving Fund. Proceeds from the loans financed
the construction of the waste water treatment plant. SDEDA has pledged future user charges as security under various
loan agreements.
The South Dakota Science and Technology Authority (SDSTA) was created to foster and facilitate scientific and
technology, investigation, experimentation, and development by creating a mechanism through which laboratory,
experimental, and development facilities may be acquired and operated. SDSTA is considered a discretely presented
component unit of the State.
In June 2019, GOED entered into an agreement to provide Future Fund grant funding to SDSTA in the amount of $2.5
million.
The South Dakota Housing Development Authority (SDHDA) was created to encourage the investment of private
capital for the construction and rehabilitation of residential housing to meet the needs of persons and families in the
state. SDHDA is considered a discretely presented component unit of the State.
SDHDA administers the Housing Opportunity Program which provides funding for new construction or the purchase
and rehabilitation of rental or homeownership housing, housing preservation, including home repair grants and grants
to make homes more accessible to individual with disabilities, homelessness prevention activities, and community land
trusts. During fiscal year 2020, the SDHDA received a $1.0 million General Fund Appropriation for the Housing
Opportunity Program.
The South Dakota Economic Development Finance Authority (SDEDFA) was created to make loans to businesses
to spawn economic growth. SDEDFA is considered a discretely presented component unit of the State.
Senate Bill 192 from the 2020 Legislative Session created a small business economic disaster relief program within
GOED and authorized the SDEDFA to make a grant to the program. On April 24, 2020 the SDEDFA approved $1.5
million to be transferred to the program.
The following transactions occurred between discretely presented component units:
The South Dakota Housing Development Authority (SDHDA) has a note receivable of $1.6 million from the South
Dakota Ellsworth Development Authority (SDEDA), another component unit of the State of South Dakota. The note
receivable is based on funding through the Neighborhood Stabilization Program (NSP) which is a non-interest bearing
note that will be forgiven in 2033, if restrictive covenants related to providing low income housing are maintained for the
20 year duration.
The South Dakota State University Foundation and the University of South Dakota Foundation have notes
receivable of $2.0 million each from The South Dakota Science and Technology Authority (SDSTA). The $4.0 million
is to be used for the purchase of xenon for future experiments. The loans will be repaid at the end of the experiment
from the sale of the xenon previously purchased. SDSTA pays the Foundations interest quarterly at a rate of 2.5% per
annum or $0.1 thousand each per year. The notes mature December 31, 2026.
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19. SUBSEQUENT EVENTS
South Dakota Clean Water Revolving Fund
On July 1, 2020, the South Dakota Conservancy District, a blended component unit of the State, issued its State
Revolving Fund Program Bonds, Series 2020 consisting of $76.3 million principal amount of Tax-exempt Revenue
Bonds.
South Dakota Building Authority
On September 3, 2020, the South Dakota Building Authority, a blended component unit of the State, issued $80.3 million
in Series 2020A taxable bonds to partially refund the Series 2014A, 2014E, 2014F, 2015A, and 2015B bonds.
Additionally, the South Dakota Building Authority issued $10.2 million in 2020B taxable bonds to partially refund the
Series 2011A, 2012A, and 2014B bonds. On December 4, 2020, the South Dakota Building Authority issued $26.3
million in Series 2020C bonds for maintenance and repair projects and refunding the Series 2010A bonds.
South Dakota Housing Development Authority
In August 2020, the South Dakota Housing Development Authority, a discretely presented component unit of the State,
issued the 2020 Series CD Homeownership Mortgage Bonds in the principal amount of $99.0 million. In September
2020, the South Dakota Housing Development Authority issued the 2020 Series A Multiple Purpose Bonds in the
principal amount of $14.8 million to refinance an existing mortgage loan and to finance a mortgage loan for new
development. Subsequent to year-end, the South Dakota Housing Development Authority was awarded $10.0 million
of Coronavirus Aid, Relief, and Economic Security (CARES) Act funding to be used by December 30, 2020, which is
anticipated to be used for housing assistance in the form of rent, utility, and mortgage payments.
South Dakota Value Added Finance Authority
On July 1, 2020, through Senate Bill 45 in the 2020 South Dakota legislative session, the Value Added Finance
Authority, a discretely presented component unit of the State, was abolished, and all duties and responsibilities related
to the nutrient management bond program, the agribusiness bond program, the beginning farmer bond program and
the value-added agriculture agribusiness relending program were transferred to the Economic Development Finance
Authority. Duties and responsibilities related to the value-added agriculture subfund were transferred to the Board of
Economic Development.
Higher Education - Board of Regents
In December of 2020, the South Dakota Board of Regents, a discretely presented component unit of the State, issued
$38.3 million of Housing and Auxiliary Facilities System Revenue Bonds, Series 2021. The bonds were issued to provide
funds for the advanced refunding of the South Dakota Board of Regents Housing and Auxiliary Facilities Revenue
Bonds, Series 2011, and pay certain expenses incident to the issuance of the Series 2021 Bonds.
Office of the Attorney General
On August 28, 2020, the Office of Attorney General was awarded $2.0 million for a Consumer Protection Lawsuit from
American Honda Motor Co., Inc. over allegations Honda concealed safety issues related to defects in the frontal airbag
systems installed in certain vehicles sold in the United States.
COVID-19 Pandemic
During the year ended June 30, 2020, the World Health Organization declared the novel coronavirus (COVID-19)
outbreak a public health emergency. The world-wide coronavirus pandemic impacted state, national, and global
economies. The State is closely monitoring its operations, liquidity, and capital resources and is actively working to
minimize the current and future impact of this unprecedented situation. As of the date of issuance of these financial
statements, the current and future full impact to the State is not known.
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20. CONTINGENCIES AND LITIGATION
The State of South Dakota is party to numerous legal proceedings, many of which occur in the normal course of
governmental operation. The outcomes of these lawsuits could have an impact on the State’s financial statements.
Based on prior experience, it is unlikely that the outcome of these claims will materially affect the financial position of
the State. The contingencies at June 30, 2020, are as follows:
U.S. Bank National Association v. South Dakota Department of Revenue
Department of Revenue (DOR) issued Certificate of Assessment (COA) on December 28, 2015, to U.S. Bank in the
amount of $0.5 million (consisting of tax and accrued interest), as a result of disallowing a bank franchise tax deduction
claimed by U.S. Bank for the calendar year 2012 audit period. In issuing the assessment, the DOR also denied two
refund requests for the periods ending December 2010 and December 2011, based on U.S. Bank’s claim for the same
deduction. A hearing was held by the Office of Hearing Examiners on September 28, 2017 on the U.S. Bank appeal of
the COA and denial of refunds. On July 18, 2018, after reviewing the Proposed Decision of the hearing examiner, the
Secretary of Revenue issued a Final Decision and Order. Notice of Entry of Final Decision and Order was served on
July 19, 2018. On August 17, 2018, U.S. Bank National Association filed a Notice of Appeal with the Sixth Judicial
Circuit Court appealing DOR’s final decision affirming the bank franchise tax assessment issued to U.S. Bank. On July
17, 2019, Sixth Judicial Circuit heard oral argument on the appeal. On May 1, 2020, the Circuit Court issued a
memorandum decision and order affirming the Secretary’s final Decision. A Notice of Entry of Order of the Circuit Court’s
decision was served on May 4, 2020. On May 28, 2020, U.S. Bank filed a Notice of Appeal to the South Dakota Supreme
Court.
The DOR is vigorously defending all matters. However, due to the nature of litigation, counsel is not in a position to give
any opinion at this time as to the risk of a favorable or unfavorable outcome in these matters.
Planned Parenthood Minnesota, North Dakota, South Dakota, and Carol E. Ball, M.D. v. Dennis
Daugaard, et al.
This is a challenge to the 2011 abortion legislation regarding mandatory informed consent advisements. The case was
filed June 30, 2011, in the United States District Court for the District of South Dakota and is before Judge
Schreier. Discovery has been initiated and is ongoing in this case. The State intends to vigorously defend against the
plaintiffs' action. If this matter has an unfavorable outcome, the plaintiffs would be entitled to an award of attorney fees
and costs exceeding $1.0 million dollars. This case is being run through the State Office of Risk Management
Extraordinary Litigation Fund which is reported as part of the State’s General Fund.
Hideaway Hills vs. School and Public Lands, formerly known as Trudo, et al, v. State of SD
Housing Authority
The plaintiffs are claiming that the defendants were negligent in the design, planning, engineering and selling of property
within the Hideaway Hills subdivision in Blackhawk, SD. Two separate actions are encompassed in this filing. One
action is brought separately by a designated Plaintiff and a second is a putative class action brought by a similarly
situated group (approximately 140 individuals or families). Both actions involve damage, future damage, diminution in
value and the like to homes constructed in the “Hideaway Hills” area which are allegedly negatively affected by the
partial collapse of an underground gypsum mine in the area.
The State intends to vigorously defend against any of the plaintiffs’ actions. It is extremely difficult to evaluate the
likelihood that one or more State entities will be found liable in either of these cases. However, if that occurs, damages
could exceed $10.0 million dollars.
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REQUIRED SUPPLEMENTARY INFORMATION
The Required Supplementary Information includes the Budgetary Reporting
and Pension Information. The following individual schedules are included:
Budgetary Comparison Schedule – General Fund
Budgetary Comparison Schedule – Transportation Fund
Budgetary Comparison Schedule – Social Services Federal Fund
Budgetary Comparison Schedule – Budget-to-GAAP Reconciliation
Notes to Required Supplementary Information – Budgetary Reporting
Schedule of Proportionate Share of Net Pension Liability (Asset)
Schedule of Contributions
Notes to Required Supplementary Information – Schedule of Proportionate Share of Net
Pension Liability (Asset) and Schedule of Contributions
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STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
RESOURCES (inflows) AVAILABLE FOR APPROPRIATION
ONGOING RESOURCES
Sales and Use Tax $ 1,075,218 $ 1,084,667 $ 1,072,830 $ (11,837)
Lottery 126,020 127,061 122,489 (4,572)
Contractor's Excise Tax 121,485 124,493 123,724 (769)
Insurance Company Tax 92,809 88,951 93,271 4,320
Unclaimed Property Receipts 47,752 41,500 47,308 5,808
Licenses, Permits, and Fees 69,649 69,388 68,278 (1,110)
Tobacco Taxes 50,059 48,625 51,066 2,441
Trust Funds 39,738 39,874 39,859 (15)
Net Transfers In 21,562 21,005 19,858 (1,147)
Alcohol Beverage Tax 7,882 8,000 8,143 143
Bank Franchise Tax 14,472 14,072 12,061 (2,011)
Charges for Goods and Services 16,333 16,800 15,404 (1,396)
Telecommunications Tax 5,481 4,668 5,964 1,296
Severance Taxes 4,566 5,500 5,882 382
Investment Income and Interest 6,016 11,088 11,150 62
Alcohol Beverage 2% Wholesale Tax 2,203 2,262 2,336 74
TOTAL ONGOING 1,701,245 1,707,954 1,699,623 (8,331)
ONE-TIME RESOURCES
Refinancing Gains 0 7,083 7,083 0
Unexpended Carryovers 0 0 425 425
Transfer from Budget Reserve Fund 0 14,860 14,860 0
Prior Year Carryover and Encumbered 11,326 11,326 11,326 0
TOTAL ONE-TIME RESOURCES 11,326 33,269 33,694 425
TOTAL RESOURCES AVAILABLE
FOR APPROPRIATION $ 1,712,571 $ 1,741,223 $ 1,733,317 $ (7,906)
CHARGES TO APPROPRIATIONS (outflows)
OFFICE OF THE GOVERNOR
Personal Services $ 1,995 $ 2,009 $ 1,888 $ 121
Operating Expenses 465 469 469 0
TOTAL 2,460 2,478 2,357 121
GOVERNOR'S CONTINGENCY FUND
Personal Services 0 0 0 0
Operating Expenses 75 75 67 8
TOTAL 75 75 67 8
GOVERNOR'S OFFICE OF ECONOMIC DEVELOPMENT
Personal Services 2,509 2,528 2,001 527
Operating Expenses 5,180 10,184 5,131 5,053
TOTAL 7,689 12,712 7,132 5,580
OFFICE OF RESEARCH COMMERCE
Personal Services 0 0 0 0
Operating Expenses 5 5 5 0
TOTAL 5 5 5 0
SCIENCE AND TECHNOLOGY AUTHORITY
Personal Services 0 0 0 0
Operating Expenses 1,470 1,470 1,470 0
TOTAL 1,470 1,470 1,470 0
SD HOUSING OPPORTUNITY
Personal Services 0 0 0 0
Operating Expenses 1,040 1,040 1,040 0
TOTAL 1,040 1,040 1,040 0
118
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
WORKFORCE EDUCATION
Personal Services $ 0 $ 0 $ 0 $ 0
Operating Expenses 490 490 490 0
TOTAL 490 490 490 0
LIEUTENANT GOVERNOR
Personal Services 23 23 23 0
Operating Expenses 14 14 14 0
TOTAL 37 37 37 0
BUREAU OF FINANCE AND MANAGEMENT
Personal Services 753 765 660 105
Operating Expenses 1,274 1,275 1,219 56
TOTAL 2,027 2,040 1,879 161
ADMINISTRATIVE SERVICES, BUREAU OF ADMINISTRATION
Personal Services 0 0 0 0
Operating Expenses 1 1 0 1
TOTAL 1 1 0 1
CENTRAL SERVICES
Personal Services 206 212 212 0
Operating Expenses 221 221 216 5
TOTAL 427 433 428 5
STATEWIDE MAINTENANCE AND REPAIR
Personal Services 0 0 0 0
Operating Expenses 33,014 33,014 18,575 14,439
TOTAL 33,014 33,014 18,575 14,439
OFFICE OF HEARING EXAMINERS
Personal Services 287 293 292 1
Operating Expenses 78 79 79 0
TOTAL 365 372 371 1
EXTRAORDINARY LITIGATION FUND
Personal Services 0 0 0 0
Operating Expenses 0 800 800 0
TOTAL 0 800 800 0
OBILIGATION RECOVERY CENTER
Personal Services 0 0 0 0
Operating Expenses 720 720 622 98
TOTAL 720 720 622 98
SOUTH DAKOTA PUBLIC BROADCASTING
Personal Services 3,066 3,159 3,130 29
Operating Expenses 1,291 1,298 1,240 58
TOTAL 4,357 4,457 4,370 87
STATE RADIO ENGINEERING
Personal Services 802 817 685 132
Operating Expenses 2,576 7,720 2,579 5,141
TOTAL 3,378 8,537 3,264 5,273
PERSONNEL MANAGEMENT AND EMPLOYEE BENEFITS
Personal Services 231 239 209 30
Operating Expenses 64 64 64 0
TOTAL 295 303 273 30
119
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
DEPARTMENT TOTAL, EXECUTIVE MANAGEMENT
Personal Services $ 9,872 $ 10,045 $ 9,100 $ 945
Operating Expenses 47,978 58,939 34,080 24,859
TOTAL 57,850 68,984 43,180 25,804
BUSINESS TAX SPECIAL TAX
Personal Services 442 454 452 2
Operating Expenses 69 70 67 3
TOTAL 511 524 519 5
AUDIT
Personal Services 659 689 587 102
Operating Expenses 706 1,370 908 462
TOTAL 1,365 2,059 1,495 564
DEPARTMENT TOTAL, REVENUE
Personal Services 1,101 1,143 1,039 104
Operating Expenses 775 1,440 975 465
TOTAL 1,876 2,583 2,014 569
ADMINISTRATION, SECRETARY OF AGRICULTURE
Personal Services 825 904 903 1
Operating Expenses 424 425 422 3
TOTAL 1,249 1,329 1,325 4
AGRICULTURAL SERVICES AND ASSISTANCE
Personal Services 1,804 1,859 1,833 26
Operating Expenses 685 1,212 1,199 13
TOTAL 2,489 3,071 3,032 39
AGRICULTURAL DEVELOPMENT AND PROMOTION
Personal Services 923 922 921 1
Operating Expenses 506 508 471 37
TOTAL 1,429 1,430 1,392 38
ANIMAL INDUSTRY BOARD
Personal Services 1,905 1,809 1,790 19
Operating Expenses 416 418 418 0
TOTAL 2,321 2,227 2,208 19
STATE FAIR
Personal Services 0 0 0 0
Operating Expenses 324 324 324 0
TOTAL 324 324 324 0
DEPARTMENT TOTAL, AGRICULTURE
Personal Services 5,457 5,494 5,447 47
Operating Expenses 2,355 2,887 2,834 53
TOTAL 7,812 8,381 8,281 100
ADMINISTRATION, SECRETARY OF GAME, FISH, AND PARKS
Personal Services 151 160 159 1
Operating Expenses 825 825 823 2
TOTAL 976 985 982 3
STATE PARKS AND RECREATION
Personal Services 2,907 2,971 2,970 1
Operating Expenses 2,471 2,471 2,466 5
TOTAL 5,378 5,442 5,436 6
120
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
DEVELOPMENT AND IMPROVEMENT, PARKS AND RECREATION
Personal Services $ 0 $ 0 $ 0 $ 0
Operating Expenses 500 500 23 477
TOTAL 500 500 23 477
DEPARTMENT TOTAL, GAME, FISH, & PARKS
Personal Services 3,058 3,131 3,129 2
Operating Expenses 3,796 3,796 3,312 484
TOTAL 6,854 6,927 6,441 486
OFFICE OF TRIBAL RELATIONS
Personal Services 544 557 508 49
Operating Expenses 153 154 113 41
TOTAL 697 711 621 90
DEPARTMENT TOTAL, TRIBAL RELATIONS
Personal Services 544 557 508 49
Operating Expenses 153 154 113 41
TOTAL 697 711 621 90
ADMINISTRATION, SECRETARY OF SOCIAL SERVICES
Personal Services 4,623 4,788 4,788 0
Operating Expenses 5,249 5,156 5,156 0
TOTAL 9,872 9,944 9,944 0
ECONOMIC ASSISTANCE
Personal Services 8,823 9,125 9,125 0
Operating Expenses 17,981 17,482 17,482 0
TOTAL 26,804 26,607 26,607 0
MEDICAL AND ADULT SERVICES
Personal Services 1,409 1,425 1,383 42
Operating Expenses 227,213 214,936 213,915 1,021
TOTAL 228,622 216,361 215,298 1,063
CHILDREN'S SERVICES
Personal Services 13,914 14,244 14,244 0
Operating Expenses 37,212 35,064 33,094 1,970
TOTAL 51,126 49,308 47,338 1,970
BEHAVIORAL HEALTH
Personal Services 35,168 36,234 34,066 2,168
Operating Expenses 61,368 59,210 54,909 4,301
TOTAL 96,536 95,444 88,975 6,469
DEPARTMENT TOTAL, SOCIAL SERVICES
Personal Services 63,937 65,816 63,606 2,210
Operating Expenses 349,023 331,848 324,556 7,292
TOTAL 412,960 397,664 388,162 9,502
ADMINISTRATION, SECRETARY OF HEALTH
Personal Services 807 827 646 181
Operating Expenses 225 226 226 0
TOTAL 1,032 1,053 872 181
HEALTH SYSTEMS DEVELOPMENT AND REGULATION
Personal Services 2,273 2,330 1,755 575
Operating Expenses 2,906 3,778 2,751 1,027
TOTAL 5,179 6,108 4,506 1,602
121
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
FAMILY AND COMMUNITY HEALTH
Personal Services $ 2,396 $ 2,465 $ 2,132 $ 333
Operating Expenses 2,067 2,144 1,756 388
TOTAL 4,463 4,609 3,888 721
LABORATORY SERVICES
Personal Services 0 0 0 0
Operating Expenses 0 706 364 342
TOTAL 0 706 364 342
DEPARTMENT TOTAL, HEALTH
Personal Services 5,476 5,622 4,533 1,089
Operating Expenses 5,198 6,854 5,097 1,757
TOTAL 10,674 12,476 9,630 2,846
ADMINISTRATION, SECRETARY OF LABOR
Personal Services 59 61 61 0
Operating Expenses 718 719 719 0
TOTAL 777 780 780 0
FIELD OPERATIONS
Personal Services 581 602 602 0
Operating Expenses 118 119 119 0
TOTAL 699 721 721 0
STATE LABOR LAW ADMINISTRATION
Personal Services 662 679 679 0
Operating Expenses 108 109 109 0
TOTAL 770 788 788 0
DEPARTMENT TOTAL, LABOR AND REGULATION
Personal Services 1,302 1,342 1,342 0
Operating Expenses 944 947 947 0
TOTAL 2,246 2,289 2,289 0
GENERAL OPERATIONS
Personal Services 555 512 512 0
Operating Expenses 26 78 78 0
TOTAL 581 590 590 0
DEPARTMENT TOTAL, TRANSPORTATION
Personal Services 555 512 512 0
Operating Expenses 26 78 78 0
TOTAL 581 590 590 0
ADMINISTRATION, SECRETARY OF EDUCATION
Personal Services 1,596 1,570 1,570 0
Operating Expenses 1,162 1,075 847 228
TOTAL 2,758 2,645 2,417 228
STATE AID TO GENERAL EDUCATION
Personal Services 0 0 0 0
Operating Expenses 477,304 474,354 473,508 846
TOTAL 477,304 474,354 473,508 846
STATE AID TO SPECIAL EDUCATION
Personal Services 0 0 0 0
Operating Expenses 69,674 69,674 64,868 4,806
TOTAL 69,674 69,674 64,868 4,806
122
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
SPARSITY PAYMENTS
Personal Services $ 0 $ 0 $ 0 $ 0
Operating Expenses 2,038 1,963 1,963 0
TOTAL 2,038 1,963 1,963 0
NATIONAL BOARD CERTIFIED TEACHERS
Personal Services 0 0 0 0
Operating Expenses 150 62 61 1
TOTAL 150 62 61 1
TECHNOLOGY AND INNOVATION IN SCHOOLS
Personal Services 0 0 0 0
Operating Expenses 14,008 14,014 13,163 851
TOTAL 14,008 14,014 13,163 851
POSTSECONDARY VOCATIONAL EDUCATION
Personal Services 246 229 220 9
Operating Expenses 24,786 25,885 25,875 10
TOTAL 25,032 26,114 26,095 19
POSTSECONDARY VOCATIONAL EDUCATION TUITION ASSISTANCE
Personal Services 0 0 0 0
Operating Expenses 1,832 1,832 1,832 0
TOTAL 1,832 1,832 1,832 0
POSTSECONDARY INSTRUCTOR SALARY ENHANCEMENTS
Personal Services 0 0 0 0
Operating Expenses 3,106 3,106 3,106 0
TOTAL 3,106 3,106 3,106 0
EDUCATION RESOURCES
Personal Services 2,192 2,271 2,271 0
Operating Expenses 8,876 7,452 7,318 134
TOTAL 11,068 9,723 9,589 134
HISTORY
Personal Services 1,050 1,589 1,579 10
Operating Expenses 1,260 1,547 1,403 144
TOTAL 2,310 3,136 2,982 154
OFFICE OF STATE LIBRARY
Personal Services 1,119 1,139 1,089 50
Operating Expenses 876 880 830 50
TOTAL 1,995 2,019 1,919 100
DEPARTMENT TOTAL, EDUCATION
Personal Services 6,203 6,798 6,729 69
Operating Expenses 605,072 601,844 594,774 7,070
TOTAL 611,275 608,642 601,503 7,139
ADMINISTRATION, SECRETARY OF PUBLIC SAFETY
Personal Services 137 138 134 4
Operating Expenses 16 16 16 0
TOTAL 153 154 150 4
HIGHWAY PATROL
Personal Services 638 575 499 76
Operating Expenses 897 899 850 49
TOTAL 1,535 1,474 1,349 125
123
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
EMERGENCY SERVICES AND HOMELAND SECURITY
Personal Services $ 1,059 $ 1,082 $ 1,070 $ 12
Operating Expenses 4,092 4,093 4,043 50
TOTAL 5,151 5,175 5,113 62
EMERGENCY DISASTER
Personal Services 0 0 0 0
Operating Expenses 0 9,918 9,918 0
TOTAL 0 9,918 9,918 0
LEGAL AND REGULATORY SERVICES
Personal Services 277 285 284 1
Operating Expenses 3,195 3,226 1,878 1,348
TOTAL 3,472 3,511 2,162 1,349
DEPARTMENT TOTAL, PUBLIC SAFETY
Personal Services 2,111 2,080 1,987 93
Operating Expenses 8,200 18,152 16,705 1,447
TOTAL 10,311 20,232 18,692 1,540
REGENTS CENTRAL OFFICE
Personal Services 4,789 4,875 4,875 0
Operating Expenses 26,133 28,962 21,866 7,096
TOTAL 30,922 33,837 26,741 7,096
SOUTH DAKOTA SCHOLARSHIPS
Personal Services 0 0 0 0
Operating Expenses 6,728 6,578 6,507 71
TOTAL 6,728 6,578 6,507 71
RESEARCH POOL
Personal Services 0 0 0 0
Operating Expenses 1,374 1,374 1,357 17
TOTAL 1,374 1,374 1,357 17
UNIVERSITY OF SOUTH DAKOTA LAW SCHOOL
Personal Services 1,646 1,693 1,693 0
Operating Expenses 206 206 206 0
TOTAL 1,852 1,899 1,899 0
UNIVERSITY OF SOUTH DAKOTA PROPER
Personal Services 33,436 34,628 34,628 0
Operating Expenses 3,264 8,040 3,272 4,768
TOTAL 36,700 42,668 37,900 4,768
UNIVERSITY OF SOUTH DAKOTA SCHOOL OF MEDICINE
Personal Services 20,463 20,845 20,845 0
Operating Expenses 3,504 3,504 3,504 0
TOTAL 23,967 24,349 24,349 0
SOUTH DAKOTA STATE UNIVERSITY PROPER
Personal Services 43,807 46,009 45,459 550
Operating Expenses 5,322 6,069 4,858 1,211
TOTAL 49,129 52,078 50,317 1,761
SDSU EXTENSION
Personal Services 8,533 8,747 8,747 0
Operating Expenses 305 305 305 0
TOTAL 8,838 9,052 9,052 0
124
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
AGRICULTURAL EXPERIMENT STATION
Personal Services $ 12,253 $ 12,541 $ 12,541 $ 0
Operating Expenses 628 628 628 0
TOTAL 12,881 13,169 13,169 0
SOUTH DAKOTA SCHOOL OF MINES AND TECHNOLOGY
Personal Services 16,638 17,171 17,171 0
Operating Expenses 948 1,441 1,413 28
TOTAL 17,586 18,612 18,584 28
NORTHERN STATE UNIVERSITY
Personal Services 14,424 14,867 14,808 59
Operating Expenses 959 958 958 0
TOTAL 15,383 15,825 15,766 59
BLACK HILLS STATE UNIVERSITY
Personal Services 9,405 9,908 9,908 0
Operating Expenses 633 697 655 42
TOTAL 10,038 10,605 10,563 42
DAKOTA STATE UNIVERSITY
Personal Services 9,633 10,458 10,227 231
Operating Expenses 660 867 669 198
TOTAL 10,293 11,325 10,896 429
SOUTH DAKOTA SCHOOL FOR THE DEAF
Personal Services 1,963 2,009 1,996 13
Operating Expenses 1,024 954 604 350
TOTAL 2,987 2,963 2,600 363
SOUTH DAKOTA SCHOOL FOR THE BLIND AND VISUALLY IMPAIRED
Personal Services 2,859 2,908 2,706 202
Operating Expenses 348 396 362 34
TOTAL 3,207 3,304 3,068 236
DEPARTMENT TOTAL, BOARD OF REGENTS
Personal Services 179,849 186,659 185,604 1,055
Operating Expenses 52,036 60,979 47,164 13,815
TOTAL 231,885 247,638 232,768 14,870
ADJUTANT GENERAL
Personal Services 455 481 479 2
Operating Expenses 141 142 142 0
TOTAL 596 623 621 2
ARMY GUARD
Personal Services 444 432 432 0
Operating Expenses 9,068 9,203 5,384 3,819
TOTAL 9,512 9,635 5,816 3,819
AIR GUARD
Personal Services 215 237 223 14
Operating Expenses 258 266 265 1
TOTAL 473 503 488 15
DEPARTMENT TOTAL, MILITARY
Personal Services 1,114 1,150 1,134 16
Operating Expenses 9,467 9,611 5,791 3,820
TOTAL 10,581 10,761 6,925 3,836
125
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
VETERANS' BENEFITS AND SERVICES
Personal Services $ 1,320 $ 1,363 $ 1,357 $ 6
Operating Expenses 1,261 1,263 580 683
TOTAL 2,581 2,626 1,937 689
STATE VETERANS' HOME
Personal Services 2,646 2,732 2,570 162
Operating Expenses 0 0 0 0
TOTAL 2,646 2,732 2,570 162
STATE VETERANS' CEMETERY
Personal Services 0 0 0 0
Operating Expenses 299 299 157 142
TOTAL 299 299 157 142
DEPARTMENT TOTAL, VETERANS' AFFAIRS
Personal Services 3,966 4,095 3,927 168
Operating Expenses 1,560 1,562 737 825
TOTAL 5,526 5,657 4,664 993
ADMINISTRATION, CENTRAL OFFICE
Personal Services 1,793 2,066 2,065 1
Operating Expenses 1,537 1,838 1,675 163
TOTAL 3,330 3,904 3,740 164
MIKE DURFEE STATE PRISON
Personal Services 12,760 13,359 13,347 12
Operating Expenses 7,091 7,585 7,580 5
TOTAL 19,851 20,944 20,927 17
STATE PENITENTIARY
Personal Services 19,802 20,411 20,408 3
Operating Expenses 14,533 17,092 10,101 6,991
TOTAL 34,335 37,503 30,509 6,994
WOMEN'S PRISON
Personal Services 4,204 4,534 4,532 2
Operating Expenses 1,995 2,765 2,706 59
TOTAL 6,199 7,299 7,238 61
INMATE SERVICES
Personal Services 3,132 3,276 3,179 97
Operating Expenses 31,416 28,225 28,223 2
TOTAL 34,548 31,501 31,402 99
PAROLE SERVICES
Personal Services 4,132 4,431 4,111 320
Operating Expenses 2,058 2,077 1,932 145
TOTAL 6,190 6,508 6,043 465
JUVENILE COMMUNITY CORRECTIONS
Personal Services 2,130 1,885 1,791 94
Operating Expenses 10,264 8,040 7,690 350
TOTAL 12,394 9,925 9,481 444
DEPARTMENT TOTAL, CORRECTIONS
Personal Services 47,953 49,962 49,433 529
Operating Expenses 68,894 67,622 59,907 7,715
TOTAL 116,847 117,584 109,340 8,244
126
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
ADMINISTRATION, SECRETARY OF HUMAN SERVICES
Personal Services $ 851 $ 869 $ 866 $ 3
Operating Expenses 341 341 330 11
TOTAL 1,192 1,210 1,196 14
DEVELOPMENTAL DISABILITIES
Personal Services 763 782 672 110
Operating Expenses 63,320 64,321 64,321 0
TOTAL 64,083 65,103 64,993 110
SOUTH DAKOTA DEVELOPMENTAL CENTER - REDFIELD
Personal Services 8,871 8,532 7,274 1,258
Operating Expenses 2,561 2,551 2,247 304
TOTAL 11,432 11,083 9,521 1,562
LONG-TERM SERVICES AND SUPPORT
Personal Services 2,600 2,671 2,671 0
Operating Expenses 99,001 96,221 90,682 5,539
TOTAL 101,601 98,892 93,353 5,539
REHABILITATION SERVICES
Personal Services 950 979 658 321
Operating Expenses 4,246 4,248 3,964 284
TOTAL 5,196 5,227 4,622 605
SERVICES TO THE BLIND AND VISUALLY IMPAIRED
Personal Services 538 551 551 0
Operating Expenses 474 474 358 116
TOTAL 1,012 1,025 909 116
DEPARTMENT TOTAL, HUMAN SERVICES
Personal Services 14,573 14,384 12,692 1,692
Operating Expenses 169,943 168,156 161,902 6,254
TOTAL 184,516 182,540 174,594 7,946
FINANCIAL AND TECHNICAL ASSISTANCE
Personal Services 2,317 2,370 2,370 0
Operating Expenses 414 417 416 1
TOTAL 2,731 2,787 2,786 1
ENVIRONMENTAL SERVICES
Personal Services 3,664 3,759 3,759 0
Operating Expenses 655 659 659 0
TOTAL 4,319 4,418 4,418 0
DEPARTMENT TOTAL, ENVIRONMENT AND NATURAL RESOURCES
Personal Services 5,981 6,129 6,129 0
Operating Expenses 1,069 1,076 1,075 1
TOTAL 7,050 7,205 7,204 1
ADMINISTRATION, PUBLIC UTILITIES COMMISSION
Personal Services 552 562 562 0
Operating Expenses 59 60 54 6
TOTAL 611 622 616 6
DEPARTMENT TOTAL, PUBLIC UTILITIES COMMISSION
Personal Services 552 562 562 0
Operating Expenses 59 60 54 6
TOTAL 611 622 616 6
127
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
UNIFIED JUDICIAL SYSTEM
Personal Services $ 42,356 $ 43,483 $ 43,074 $ 409
Operating Expenses 5,136 5,586 5,050 536
TOTAL 47,492 49,069 48,124 945
EQUAL ACCESS TO OUR COURTS
Personal Services 0 0 0 0
Operating Expenses 50 50 50 0
TOTAL 50 50 50 0
DEPARTMENT TOTAL, UNIFIED JUDICIAL SYSTEM
Personal Services 42,356 43,483 43,074 409
Operating Expenses 5,186 5,636 5,100 536
TOTAL 47,542 49,119 48,174 945
LEGISLATIVE OPERATIONS
Appropriation 7,289 7,504 7,441 63
TOTAL 7,289 7,504 7,441 63
AUDITOR GENERAL
Personal Services 3,517 3,587 3,219 368
Operating Expenses 408 409 386 23
TOTAL 3,925 3,996 3,605 391
DEPARTMENT TOTAL, LEGISLATIVE DEPARTMENT
Personal Services 3,517 3,587 3,219 368
Operating Expenses 408 409 386 23
Appropriation 7,289 7,504 7,441 63
TOTAL 11,214 11,500 11,046 454
LEGAL SERVICES PROGRAM
Personal Services 4,708 4,813 4,813 0
Operating Expenses 717 721 721 0
TOTAL 5,425 5,534 5,534 0
CRIMINAL INVESTIGATION
Personal Services 4,924 5,030 5,030 0
Operating Expenses 1,829 1,929 1,914 15
TOTAL 6,753 6,959 6,944 15
LAW ENFORCEMENT TRAINING
Personal Services 0 0 0 0
Operating Expenses 510 518 518 0
TOTAL 510 518 518 0
DEPARTMENT TOTAL, ATTORNEY GENERAL
Personal Services 9,632 9,843 9,843 0
Operating Expenses 3,056 3,168 3,153 15
TOTAL 12,688 13,011 12,996 15
ADMINISTRATION OF SCHOOL AND PUBLIC LANDS
Personal Services 445 457 442 15
Operating Expenses 829 829 308 521
TOTAL 1,274 1,286 750 536
DEPARTMENT TOTAL, SCHOOL AND PUBLIC LANDS
Personal Services 445 457 442 15
Operating Expenses 829 829 308 521
TOTAL 1,274 1,286 750 536
128
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
BUDGETED AMOUNTS Variance with
Original Final Actual Amounts Final Budget
SECRETARY OF STATE
Personal Services $ 713 $ 731 $ 677 $ 54
Operating Expenses 624 959 828 131
TOTAL 1,337 1,690 1,484 185
DEPARTMENT TOTAL, SECRETARY OF STATE
Personal Services 713 731 677 54
Operating Expenses 624 959 828 131
TOTAL 1,337 1,690 1,484 185
TREASURY MANAGEMENT
Personal Services 416 426 421 5
Operating Expenses 176 177 166 11
TOTAL 592 603 587 16
DEPARTMENT TOTAL, STATE TREASURER
Personal Services 416 426 421 5
Operating Expenses 176 177 166 11
TOTAL 592 603 587 16
STATE AUDITOR
Personal Services 1,199 1,222 1,204 18
Operating Expenses 155 173 173 0
TOTAL 1,354 1,395 1,377 18
DEPARTMENT TOTAL, STATE AUDITOR
Personal Services 1,199 1,222 1,204 18
Operating Expenses 155 173 173 0
TOTAL 1,354 1,395 1,377 18
STATE TOTAL
Personal Services 411,882 425,230 416,293 8,937
Operating Expenses 1,336,982 1,347,356 1,270,215 77,141
Appropriation 7,289 7,504 7,441 63
TOTAL CHARGES TO
APPROPRIATION $ 1,756,153 $ 1,780,090 $ 1,693,949 $ 86,141
NON-BUDGETED OUTFLOWS
Transfer to Budget Reserve Fund $ 0 $ 0 $ 19,355 $ (19,355)
Non-budgeted Transfers Out 0 0 9,537 (9,537)
TOTAL NON-BUDGETED OUTFLOWS $ 0 $ 0 $ 28,892 $ (28,892)
CHANGE IN BUDGETARY FUND BALANCE $ (43,582) $ (38,867) $ 10,476 $ 49,343
BUDGETARY FUND BALANCE JULY 1, 2019 as restated 67,202 67,202 67,202 0
BUDGETARY FUND BALANCE JUNE 30, 2020 $ 23,620 $ 28,335 $ 77,678 $ 49,343
The notes to Required Supplementary Information are an integral part of this schedule.
129
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Budgeted Amounts Variance with
Original Final Actual Amounts Final Budget
CHARGES TO APPROPRIATIONS (outflows)
GENERAL OPERATIONS
Personal Services $ 74,711 $ 76,681 $ 75,014 $ 1,667
Operating Expenses 139,720 135,098 109,949 25,149
TOTAL 214,431 211,779 184,963 26,816
CONTRACT CONSTRUCTION INFORMATIONAL
Personal Services 0 0 0 0
Operating Expenses 489,495 550,895 585,745 (34,850)
TOTAL 489,495 550,895 585,745 (34,850)
ENFORCEMENT
Personal Services 16,066 11,991 11,330 661
Operating Expenses 8,300 10,690 9,589 1,101
TOTAL 24,366 22,681 20,919 1,762
FUND TOTAL, TRANSPORTATION
Personal Services 90,777 88,672 86,344 2,328
Operating Expenses 637,515 696,683 705,283 (8,600)
TOTAL CHARGES TO
APPROPRIATION $ 728,292 $ 785,355 $ 791,627 $ (6,272)
The notes to Required Supplementary Information are an integral part of this schedule.
130
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
SOCIAL SERVICES FEDERAL FUND
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Budgeted Amounts Variance with
Original Final Actual Amounts Final Budget
CHARGES TO APPROPRIATIONS (outflows)
ADMINISTRATION
Personal Services $ 5,958 $ 6,125 $ 4,402 $ 1,723
Operating Expenses 11,323 11,210 6,657 4,553
TOTAL 17,281 17,335 11,059 6,276
ECONOMIC ASSISTANCE
Personal Services 12,486 12,762 10,601 2,161
Operating Expenses 65,520 65,522 36,465 29,057
TOTAL 78,006 78,284 47,066 31,218
MEDICAL AND ADULT SERVICES
Personal Services 2,844 2,915 2,771 144
Operating Expenses 425,583 410,024 388,322 21,702
TOTAL 428,427 412,939 391,093 21,846
CHILDREN'S SERVICES
Personal Services 10,726 11,083 8,865 2,218
Operating Expenses 44,378 46,751 46,529 222
TOTAL 55,104 57,834 55,394 2,440
BEHAVIORAL HEALTH
Personal Services 8,669 8,706 6,771 1,935
Operating Expenses 33,743 33,757 29,535 4,222
TOTAL 42,412 42,463 36,306 6,157
DEPARTMENT TOTAL, SOCIAL SERVICES
Personal Services 40,683 41,591 33,410 8,181
Operating Expenses 580,547 567,264 507,508 59,756
TOTAL CHARGES TO
APPROPRIATION $ 621,230 $ 608,855 $ 540,918 $ 67,937
The notes to Required Supplementary Information are an integral part of this schedule.
131
STATE OF SOUTH DAKOTA
BUDGETARY COMPARISON SCHEDULE
BUDGET-TO-GAAP RECONCILIATION
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
General
Fund
Inflows of Resources:
Actual amounts (budgetary basis) "Amounts Available for $ 1,733,317
Appropriation" from the budgetary comparison schedule
Differences-budget to GAAP:
Transfers from other funds are inflows of budgetary resources but are (124,732)
not revenues for financial reporting purposes
To adjust revenues for accruals and other year-end entries (14,106)
such as the recording tax receivables, shared revenue receipts, and
reclassification of lottery revenues
To adjust revenues for statutorily created funds that do not qualify as special 26,811
revenue funds
Money from the General Fund Budget Reserve are inflows of budgetary (14,860)
resources but are not revenues for financial reporting purposes
Prior year carryover and encumbered amounts are inflows of budgetary (11,326)
resources but are not revenues for financial reporting purposes
Unexpended carryovers, specials, and deferred maintenances are inflows of (425)
budgetary resources but are not revenues for financial reporting purposes
Sales of capital assets are inflows of budgetary resources but are not (78)
revenues for financial reporting purposes
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances-governmental funds $ 1,594,601
General Transportation Social Services
Fund Fund Federal Fund
Uses/Outflows of Resources:
Actual amounts (budgetary basis) "Total Charges to Appropriations" $ 1,693,949 $ 791,627 $ 540,918
from the budgetary comparison schedule
Differences-budget to GAAP:
Encumbrances for supplies, equipment ordered but not yet received and for (62,078) (20,108) (36,082)
uncompleted contracts are reported in the year first encumbered for
budgetary purposes, but expenditures are reported in the year the related
expenditure is incurred for financial reporting purposes.
Transfers to other funds are outflows of budgetary resources but are (14,363)
not expenditures for financial reporting purposes
To adjust expenditures/expenses for accruals and other year-end entries 29,791 27,763 124,509
such as the recording of food stamps and shared revenue distribution
To adjust expenditures/expenses related to the pandemic which management (22,910)
moved to the COVID-19 Federal Fund budget year-end per State's
accounting system
To adjust expenditures/expenses for statutorily created funds that do not 31,549
qualify as special revenue funds
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances-governmental funds $ 1,655,938 $ 799,282 $ 629,345
The notes to Required Supplementary Information are an integral part of this schedule.
132
Required Supplementary Information
Notes to Required Supplementary Information - Budgetary Reporting
The Budgetary Comparison Schedule is comprised of three sections: 1) Resources Available for Appropriation
(Resources), 2) Charges to Appropriations and 3) Non-Budgeted Outflows. The first section presents
comparisons of the legally adopted original estimated resources, the revised adopted estimated resources, and
actual amounts for each category of resources for the State of South Dakota on a budgetary basis. The General
Fund is the only fund that has legally adopted estimated resources by the Legislature. The State
does not estimate or forecast resources inflows for the Transportation or Social Services Federal
Fund. Therefore, the Transportation and Social Services Federal Funds do not have a resource section
of their corresponding Budgetary Comparison Schedules. The original adopted estimated resources are
defined as the estimated resources for the next fiscal year as referenced in SDCL 4-7-10(2), as adopted by
the Legislature. The prior year carryover and encumbered amount is adopted before the current fiscal
year and is carried over to subsequent years based on the expiration date. The revised adopted estimated
resources are defined as the estimated resources in the current fiscal year as referenced in SDCL
4-7-10(2). The actual amounts are comprised of actual collections as of the close of the fiscal year.
The second section presents comparisons of the original charges to appropriations budget and legally revised
final charges to appropriations budget, with actual amounts for each program of the State on a budgetary basis.
A Budgetary Comparison Schedule is presented for the General Fund and for each major special revenue fund
that has a legally adopted annual budget. There are currently two major special revenue funds that fit this
criterion: the Social Services Federal Fund and the Transportation Fund. The Budgetary Comparison Schedule
follows the same format, terminology, and classification as the State’s General Appropriations Act (General Bill).
Also included is a column that compares the variance between the final budget and actual amounts. A positive
variance refers to unused budget, while a negative variance refers to an over-expended budget. For the year
ended June 30, 2020, there were no over-expenditures by any State department. Informational budget units,
when combined with specific continuous or annual appropriation designation, are able to over-spend the
expenditure authority.
The original appropriations budget is defined as the first complete appropriated budget, adjusted by reserves,
transfers, allocations, supplemental appropriations, reorganizations, and other legally authorized legislative and
executive changes before the beginning of the fiscal year. Any such transaction that is authorized as legislative
or executive change before the beginning of the fiscal year is included in the original budget, regardless of the
effective date of the document loaded on the accounting system. The amount appropriated for employee
compensation in the General Bill is reported as distributed to the departments and programs. Any of these
adjustments may change the format, terminology, or classification of a Budgetary Comparison Schedule. The
original budget also includes any actual appropriation amounts carried forward by law from prior years, including
special appropriations, maintenance and repair, and carryovers. The final budget is defined as the original
budget, adjusted by all reserves, transfers, allocations, supplemental appropriations, reorganizations, and other
legally authorized legislative and executive changes after the beginning of the fiscal year. The actual amounts
do not include multiyear appropriation amounts that roll forward for a set number of years and are not
encumbered. This can result in a large variance between the final budget and actual amounts.
The third section presents non-budgeted outflows which account for items that are outflows but not charges to
appropriations. An example of a non-budgeted outflow includes, statutorily required year-end transfers to the
Budget Reserve.
The Budgetary Comparison Schedule reports amounts on a budgetary basis. The accounting principles applied
for reporting on a budgetary basis differ from those used to present the financial statements in accordance with
Generally Accepted Accounting Principles (GAAP). Since the budget is prepared principally on a cash basis, the
Budgetary Comparison Schedule includes information presented on this basis for the fiscal year. A reconciliation
of the two methods for the fiscal year ended June 30, 2020 has also been included as Required Supplementary
Information.
The budgetary fund balance for the General Fund decreased by $16.7 million in fiscal year 2020 for unreported
non-budgeted transfers out in fiscal years 2018 and 2019.
133
STATE OF SOUTH DAKOTA
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY (ASSET)
SOUTH DAKOTA RETIREMENT SYSTEM
July 1, 2018 to June 30, 2019 Measurement Date
Last Ten Fiscal Years *
(Dollars Expressed in Thousands)
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2020 2019 2018 2017 2016 2015
State's proportion of net pension liability (asset) 20.73% 21.05% 21.58% 22.27% 22.45% 22.07%
State's proportionate share of the net pension
liability (asset) $ (2,196) $ (489) $ (1,958) $ 75,220 $ (95,216) $ (158,996)
State's covered payroll $ 413,938 $ 409,773 $ 410,337 $ 395,647 $ 389,949 $ 367,417
State's proportionate share of the net pension
liability (asset) as a percentage of its
covered payroll (0.53%) (0.12%) (0.48%) (19.01%) (24.42%) (43.27%)
Plan fiduciary net position as a percentage
of the total pension liability (asset) 100.09% 100.02% 100.10% 96.90% 104.10% 107.29%
The notes to Required Supplmentary Information are an integral part of this schedule.
* Note: This schedule is intended to present information for the last 10 years. However, until a full 10-year trend is compiled,
information is presented for the years in which information is available.
STATE OF SOUTH DAKOTA
SCHEDULE OF CONTRIBUTIONS
SOUTH DAKOTA RETIREMENT SYSTEM
June 30, 2020
Last Ten Fiscal Years *
(Dollars Expressed in Thousands)
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2020 2019 2018 2017 2016 2015
Contractually required contribution $ 27,199 $ 26,441 $ 26,231 $ 26,313 $ 25,406 $ 24,588
Contributions in relation to the contractually
required contribution (27,199) (26,441) (26,231) (26,313) (25,406) (24,588)
Contribution deficiency (excess) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
State's covered payroll $ 426,298 $ 413,938 $ 409,773 $ 410,337 $ 395,647 $ 389,949
Contributions as a percentage of
covered payroll 6.38% 6.39% 6.40% 6.41% 6.42% 6.31%
The notes to Required Supplmentary Information are an integral part of this schedule.
* Note: This schedule is intended to present information for the last 10 years. However, until a full 10-year trend is compiled,
information is presented for the years in which information is available.
134
Required Supplementary Information
Notes to Required Supplementary Information – Schedule of
Proportionate Share of Net Pension Liability (Asset) and
Schedule of Contributions
Changes of Benefit Terms:
No significant changes.
Changes of Assumptions:
Legislation enacted in 2017 modified the SDRS COLA. For COLAs first applicable in 2018, the SDRS COLA will
equal the percentage increase in the most recent third calendar quarter CPI-W over the prior year, no less than
0.5% and no greater than 3.5%. However, if the Fair Value Funded Ratio (FVFR) assuming the long-term COLA
is equal to the baseline COLA assumption (currently 2.25%) is less than 100%, the maximum COLA payable will
be limited to the increase that, if assumed on a long-term basis, results in a FVFR equal to or exceeding 100%.
That condition existed as of June 30, 2018 and exists again this year as of June 30, 2019. Future COLAs are
assumed to equal the current restricted maximum COLA which was 2.03% as of June 30, 2018 and is 1.88% as
of June 30, 2019.
The changes in actuarial assumptions increased the Actuarial Accrued Liability by 1.5% of the Actuarial Accrued
Liability based on the 2.03% COLA, reflecting the current and assumed future restricted maximum COLA of
1.88%.
Actuarial assumptions are reviewed in depth periodically, with the next experience analysis anticipated before
the June 30, 2022 Actuarial Valuation and any recommended changes anticipated to be first implemented in the
June 30, 2022 Actuarial Valuation.
135
136
COMBINING FINANCIAL STATEMENTS
The Combining Financial Statements include the Nonmajor
Governmental Funds, Nonmajor Enterprise Funds, Internal Service
Funds, Fiduciary Funds, Component Units, and Nonmajor Component
Units. The following individual statements are included:
▪ Combining Balance Sheet – Nonmajor Governmental Funds – By Type
▪ Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Governmental Funds – By Type
▪ Combining Balance Sheet – Nonmajor Special Revenue Funds
▪ Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Special Revenue Funds
▪ Combining Balance Sheet – Nonmajor Debt Service Funds
▪ Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Debt Service Funds
▪ Combining Statement of Net Position – Nonmajor Enterprise Funds
▪ Combining Statement of Revenues, Expenses, and Changes in Net Position –
Nonmajor Enterprise Funds
▪ Combining Statement of Cash Flows – Nonmajor Enterprise Funds
▪ Combining Statement of Net Position – Internal Service Funds
▪ Combining Statement of Revenues, Expenses, and Changes in Net Position –
Internal Service Funds
▪ Combining Statement of Cash Flows – Internal Service Funds
▪ Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds
▪ Combining Statement of Changes in Fiduciary Net Position – Private Purpose
Trust Funds
▪ Combining Statement of Fiduciary Assets and Liabilities – Agency Funds
▪ Combining Statement of Changes in Assets and Liabilities – Agency Funds
▪ Combining Statement of Net Position – Component Units
▪ Combining Statement of Revenues, Expenses, and Changes in Net Position –
Component Units
▪ Statement of Cash Flows – Higher Education
▪ Combining Statement of Net Position – Nonmajor Component Units
▪ Combining Statement of Revenues, Expenses, and Changes in Net Position –
Nonmajor Component Units
▪ Statement of Cash Flows – Value Added Finance Authority
137
STATE OF SOUTH DAKOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS - BY TYPE
June 30, 2020
(Expressed in Thousands)
Special Debt Capital
Revenue Service Projects Permanent Total
Assets
Cash and Cash Equivalents $ 303,024 $ 4,261 $ 1,058 $ 27 $ 308,370
Restricted Cash 2 2
Investments 159,763 835 61,046 221,644
Restricted Investments 19,373 19,373
Receivables from:
Taxes, net 2,986 2,986
Interest and Dividends 1,458 2 74 116 1,650
Other Funds 7,315 7,315
Component Units 402 402
Other Governments 111,740 111,740
Loans and Notes, net 58,498 713 59,211
Other, net 7,792 10,198 23 18,013
Inventory 2,372 2,372
Advances to Component Units 1,193 1,193
Other Assets 1,891 1,989 3,880
Total Assets $ 658,434 $ 34,671 $ 1,132 $ 63,914 $ 758,151
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities:
Accounts Payable and Other Liabilities $ 50,217 $ $ $ 5 $ 50,222
Payable to:
Other Funds 36,433 1,132 3,178 40,743
Component Units 665 665
Other Governments 66,917 66,917
Claims, Judgments, and Compensated Absences 133 133
Unearned Revenue 16,508 16,508
Total Liabilities 170,873 0 1,132 3,183 175,188
Deferred Inflows of Resources:
Unavailable Revenue 4,216 10,198 14,414
Total Deferred Inflows of Resources 4,216 10,198 0 0 14,414
Fund Balances:
Nonspendable 89,330 61,745 151,075
Restricted 326,147 24,473 350,620
Committed 51,243 51,243
Assigned 23,970 23,970
Unassigned (7,345) (1,014) (8,359)
Total Fund Balances 483,345 24,473 0 60,731 568,549
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 658,434 $ 34,671 $ 1,132 $ 63,914 $ 758,151
138
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS - BY TYPE
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Special Debt Capital
Revenue Service Projects Permanent Total
Revenue:
Taxes $ 99,970 $ $ $ $ 99,970
Licenses, Permits, and Fees 287,231 287,231
Fines, Forfeits, and Penalties 18,394 18,394
Use of Money and Property 21,681 341 179 5,374 27,575
Sales and Services 19,870 19,870
Administering Programs 664,530 664,530
Tobacco Settlement 20,865 20,865
Other Revenue 26,353 84 26,437
Total Revenue 1,138,029 21,290 179 5,374 1,164,872
Expenditures:
Current:
General Government 38,202 116 2,929 41,247
Education 190,733 190,733
Health, Human, and Social Services 373,860 373,860
Law, Justice, Public Protection, and Regulation 128,743 128,743
Agriculture and Natural Resources 146,850 146,850
Economic Resources 21,792 21,792
Transportation 6,265 6,265
State Shared Revenue Paid to
Other Governments 145,818 145,818
Capital Outlay 13,912 13,912
Debt Service:
Principal 14,280 14,280
Interest 6,510 6,510
Bond Issuance Costs 65 65
Total Expenditures 1,052,263 20,971 13,912 2,929 1,090,075
Excess of Revenue Over (Under)
Expenditures 85,766 319 (13,733) 2,445 74,797
Other Financing Sources (Uses):
Proceeds from Sale of Capital Assets 199 83 282
Proceeds of Refunding Bonds 7,130 7,130
Payments on Advance Refundings (6,469) (6,469)
Transfers In 29,467 6,561 36,028
Transfers Out (92,467) (8,145) (179) (1,430) (102,221)
Total Other Financing Sources (Uses) (62,801) (923) (179) (1,347) (65,250)
Net Change in Fund Balances 22,965 (604) (13,912) 1,098 9,547
Fund Balances at Beginning of Year 460,380 25,077 13,912 59,633 559,002
Fund Balances at End of Year $ 483,345 $ 24,473 $ 0 $ 60,731 $ 568,549
139
STATE OF SOUTH DAKOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
June 30, 2020
(Expressed in Thousands)
Governor's
Office
and State
Education Human Health Development
Federal Services Labor Federal Federal
Assets
Cash and Cash Equivalents $ $ 3 $ 3,391 $ $ 3,931
Investments
Receivables from:
Taxes, net
Interest and Dividends 1 2 7
Other Funds 644 255 91
Component Units 2
Other Governments 21,609 23,240 2,482 4,035 1,275
Loans and Notes, net 5,296
Other, net 18 2
Inventory 429 131 39 1,663
Advances to Component Units
Other Assets 64 1 159 4
Total Assets $ 22,102 $ 24,020 $ 6,187 $ 5,950 $ 10,515
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities:
Accounts Payable and Other Liabilities $ 2,385 $ 20,584 $ 874 $ 1,994 $ 2
Payable to:
Other Funds 1,410 1,080 2,087 927 1
Component Units 243 33 41
Other Governments 17,056 239 1 72 1,115
Claims, Judgments, and Compensated Absences 1 39 8 10
Unearned Revenue 828 339 1,023
Total Liabilities 21,923 21,942 3,309 4,059 1,159
Deferred Inflows of Resources:
Unavailable Revenue
Total Deferred Inflows of Resources 0 0 0 0 0
Fund Balances:
Nonspendable 64 132 39 1,822 4
Restricted 115 1,754 69 9,352
Committed
Assigned 1,946 1,085
Unassigned
Total Fund Balances 179 2,078 2,878 1,891 9,356
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 22,102 $ 24,020 $ 6,187 $ 5,950 $ 10,515
140
Public Safety Natural Game, Fish, Parks Securities
Emergency Resources and Parks Game and and Gaming
Management Federal Federal and Fish Recreation Insurance Health Commission
$ 1,850 $ $ $ 10,355 $ 4,015 $ 1,397 $ 3,597 $ 5,895
921
43 15 38 8
16 137 110
12,642 1,459 2,890 290 191
184
113 415 3,009
68
63
$ 14,739 $ 1,459 $ 2,890 $ 10,527 $ 4,872 $ 1,435 $ 6,975 $ 6,824
$ 2,328 $ 457 $ 1,369 $ 1,690 $ 2,771 $ 196 $ 306 $ 68
302 585 592 523 354 20 10 757
228 19 5
7,256 211 695 308 1 18 729
1 4 9 27
2 4,749
9,886 1,254 2,890 2,549 3,153 216 339 6,303
1,750
0 0 0 0 0 0 1,750 0
63 68
7,978 3,799 3,411
653 521
4,790 205 566 1,407
(2,080)
4,853 205 0 7,978 1,719 1,219 4,886 521
$ 14,739 $ 1,459 $ 2,890 $ 10,527 $ 4,872 $ 1,435 $ 6,975 $ 6,824
Continued on next page
141
STATE OF SOUTH DAKOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS (continued)
June 30, 2020
(Expressed in Thousands)
Vocational Petroleum
Motor Education Release
Vehicle Revenue Future Facilities Compensation
Assets
Cash and Cash Equivalents $ 25,982 $ 774 $ 33,729 $ 387 $ 5,793
Investments 7,926
Receivables from:
Taxes, net 277
Interest and Dividends 84 9 107 2 21
Other Funds 474 30
Component Units
Other Governments 16,723 492 172
Loans and Notes, net
Other, net 458 204
Inventory
Advances to Component Units
Other Assets
Total Assets $ 43,721 $ 1,275 $ 34,070 $ 8,487 $ 6,091
Liabilities, Deferred Inflows of
Resources, and Fund Balances
Liabilities:
Accounts Payable and Other Liabilities $ 615 $ 769 $ 92 $ $ 32
Payable to:
Other Funds 1,513 357 4
Component Units 2
Other Governments 32,663 14
Claims, Judgments, and Compensated Absences 21
Unearned Revenue
Total Liabilities 34,812 1,126 94 14 36
Deferred Inflows of Resources:
Unavailable Revenue 190
Total Deferred Inflows of Resources 0 0 190 0 0
Fund Balances:
Nonspendable
Restricted 33,786 8,140
Committed 8,909 974 6,055
Assigned 333
Unassigned (825)
Total Fund Balances 8,909 149 33,786 8,473 6,055
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 43,721 $ 1,275 $ 34,070 $ 8,487 $ 6,091
on next page
142
Maintenance Water Health
and and Energy Military Care Railroad
Repair Environment Conservation Federal Trust Trust Other Total
$ 5,210 $ 30,582 $ 5,925 $ $ 88 $ 6,114 $ 154,006 $ 303,024
150,879 958 159,763
635 15 1,138 2,986
15 163 51 204 186 502 1,458
509 562 4,487 7,315
400 402
154 7,697 16,389 111,740
22,877 6,766 18,283 5,092 58,498
267 3,306 7,792
42 2,372
1,193 1,193
10 1,590 1,891
$ 5,744 $ 56,166 $ 12,757 $ 7,697 $ 151,171 $ 24,850 $ 187,910 $ 658,434
$ 222 $ 41 $ $ 2,034 $ 5 $ $ 11,383 $ 50,217
10 4,941 5,677 15,283 36,433
37 57 665
2,863 679 2,997 66,917
13 133
9,567 16,508
232 2,904 0 7,654 5,682 37 39,300 170,873
40 2,236 4,216
0 40 0 0 0 0 2,236 4,216
10 85,631 1,497 89,330
53,222 12,566 1 59,858 24,387 107,709 326,147
2,274 191 426 31,240 51,243
3,228 42 10,368 23,970
(4,440) (7,345)
5,512 53,222 12,757 43 145,489 24,813 146,374 483,345
$ 5,744 $ 56,166 $ 12,757 $ 7,697 $ 151,171 $ 24,850 $ 187,910 $ 658,434
143
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Governor's
Office
and State
Education Human Health Development
Federal Services Labor Federal Federal
Revenue:
Taxes $ $ $ 429 $ $
Licenses, Permits, and Fees 132 891
Fines, Forfeits, and Penalties 336
Use of Money and Property 43 15 173
Sales and Services 2,342 13
Administering Programs 178,656 253,754 23,398 55,902 7,204
Other Revenue 114 43 19 4 9
Total Revenue 178,770 256,314 24,752 56,242 7,399
Expenditures:
General Government
Education 178,659
Health, Human, and Social Services 255,717 26,100 56,293
Law, Justice, Public Protection, and Regulation 36
Agriculture and Natural Resources
Economic Resources 7,206
Transportation
State Shared Revenue Paid to
Other Governments
Total Expenditures 178,659 255,717 26,136 56,293 7,206
Excess of Revenue Over (Under)
Expenditures 111 597 (1,384) (51) 193
Other Financing Sources (Uses):
Proceeds from Sale of Capital Assets 5
Transfers In 554 3,534 239
Transfers Out (36) (595) (143) (7,000)
Total Other Financing Sources (Uses) (36) (41) 3,391 244 (7,000)
Net Change in Fund Balances 75 556 2,007 193 (6,807)
Fund Balances at Beginning of Year 104 1,522 871 1,698 16,163
Fund Balances at End of Year $ 179 $ 2,078 $ 2,878 $ 1,891 $ 9,356
144
Public Safety Natural Game, Fish, Parks Securities
Emergency Resources and Parks Game and and Gaming
Management Federal Federal and Fish Recreation Insurance Health Commission
$ $ $ $ $ 1,946 $ 29,991 $ $ 8,971
31,610 22,973 29,676 1,671 5,807
55 3
202 425 2,735 323 85
94 18 7 1,632
37,586 8,421 19,714 446
14 16 150 126 9,742
37,600 8,421 19,932 32,279 28,244 60,052 13,045 14,866
11,502
42,809 3,312 1,262
8,455 18,780 34,477 30,199
7,657
42,809 8,455 18,780 34,477 30,199 3,312 11,502 8,919
(5,209) (34) 1,152 (2,198) (1,955) 56,740 1,543 5,947
93 37
9,918 113 1,131 15
(1,152) (1,056) (3,284) (56,570) (924) (5,550)
9,918 113 (1,152) 168 (3,232) (56,570) (924) (5,550)
4,709 79 (2,030) (5,187) 170 619 397
144 126 10,008 6,906 1,049 4,267 124
$ 4,853 $ 205 $ 0 $ 7,978 $ 1,719 $ 1,219 $ 4,886 $ 521
Continued on next page
145
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS (continued)
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Vocational Petroleum
Motor Education Release
Vehicle Revenue Future Facilities Compensation
Revenue:
Taxes $ 3,889 $ 11,372 $ 17,968 $ $ 3,274
Licenses, Permits, and Fees 138,396 4,272 6,144
Fines, Forfeits, and Penalties 1
Use of Money and Property 491 87 1,035 177 234
Sales and Services 1,765
Administering Programs 200
Other Revenue 119 3,256 790
Total Revenue 144,661 15,731 22,259 7,311 3,508
Expenditures:
General Government 8,263 13,419
Education 10,111
Health, Human, and Social Services
Law, Justice, Public Protection, and Regulation 8,557
Agriculture and Natural Resources 1,005
Economic Resources 8,456
Transportation
State Shared Revenue Paid to
Other Governments 126,353 2,480
Total Expenditures 143,173 15,899 8,456 10,111 1,005
Excess of Revenue Over (Under)
Expenditures 1,488 (168) 13,803 (2,800) 2,503
Other Financing Sources (Uses):
Proceeds from Sale of Capital Assets
Transfers In 1,033 143 2,318
Transfers Out (1,794) (28) (561)
Total Other Financing Sources (Uses) (761) 0 115 2,318 (561)
Net Change in Fund Balances 727 (168) 13,918 (482) 1,942
Fund Balances at Beginning of Year 8,182 317 19,868 8,955 4,113
Fund Balances at End of Year $ 8,909 $ 149 $ 33,786 $ 8,473 $ 6,055
on next page
146
Maintenance Water Health
and and Energy Military Care Railroad
Repair Environment Conservation Federal Trust Trust Other Total
$ $ 6,523 $ 173 $ $ $ $ 15,434 $ 99,970
1,816 331 43,512 287,231
17,999 18,394
141 1,708 506 27 6,900 834 5,540 21,681
1,920 12,079 19,870
27,133 52,116 664,530
25 1 154 11,771 26,353
2,061 10,072 679 27,161 6,900 1,319 158,451 1,138,029
3,276 487 12,757 38,202
1,963 190,733
24,248 373,860
27,159 45,608 128,743
10,315 43,619 146,850
48 6,082 21,792
3,842 2,423 6,265
9,328 145,818
3,276 10,315 48 27,159 487 3,842 146,028 1,052,263
(1,215) (243) 631 2 6,413 (2,523) 12,423 85,766
4 60 199
1,444 2,778 6,247 29,467
(600) (5,677) (7,497) (92,467)
1,444 2,178 0 0 (5,677) 4 (1,190) (62,801)
229 1,935 631 2 736 (2,519) 11,233 22,965
5,283 51,287 12,126 41 144,753 27,332 135,141 460,380
$ 5,512 $ 53,222 $ 12,757 $ 43 $ 145,489 $ 24,813 $ 146,374 $ 483,345
147
STATE OF SOUTH DAKOTA
COMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
June 30, 2020
(Expressed in Thousands)
Building Tobacco
Authority Securitization Total
Assets
Cash and Cash Equivalents $ 4,155 $ 106 $ 4,261
Restricted Cash 2 2
Investments 835 835
Restricted Investments 19,373 19,373
Receivables from:
Interest and Dividends 2 2
Other, net 10,198 10,198
Total Assets $ 4,155 $ 30,516 $ 34,671
Deferred Inflows of Resources:
Unavailable Revenue $ $ 10,198 $ 10,198
Total Deferred Inflows of Resources 0 10,198 10,198
Fund Balances:
Restricted 4,155 20,318 24,473
Total Fund Balances 4,155 20,318 24,473
Total Deferred Inflows of
Resources and Fund Balances $ 4,155 $ 30,516 $ 34,671
148
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Building Tobacco
Authority Securitization Total
Revenue:
Use of Money and Property $ $ 341 $ 341
Tobacco Settlement 20,865 20,865
Other Revenue 84 84
Total Revenue 84 21,206 21,290
Expenditures:
Current:
General Government 116 116
Debt Service:
Principal 3,680 10,600 14,280
Interest 3,112 3,398 6,510
Bond Issuance Costs 65 65
Total Expenditures 6,857 14,114 20,971
Excess of Revenue Over (Under)
Expenditures (6,773) 7,092 319
Other Financing Sources (Uses):
Proceeds of Refunding Bonds 7,130 7,130
Payments on Advance Refundings (6,469) (6,469)
Transfers In 6,561 6,561
Transfers Out (828) (7,317) (8,145)
Total Other Financing Sources (Uses) 6,394 (7,317) (923)
Net Change in Fund Balances (379) (225) (604)
Fund Balances at Beginning of Year 4,534 20,543 25,077
Fund Balances at End of Year $ 4,155 $ 20,318 $ 24,473
149
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
June 30, 2020
(Expressed in Thousands)
Revolving
Economic Federal
Development Second State Surplus Rural
and Initiative Injury Fair Property Rehabilitation
Assets
Current Assets:
Cash and Cash Equivalents $ 87,899 $ 2,757 $ 1,016 $ 296 $ 2,892
Receivables:
Interest and Dividends 466 14 3 1 52
Other Funds
Component Units
Other Governments 105
Loans and Notes, net 6,586 626
Other, net 53 12
Inventory 1,241
Other Assets
Total Current Assets 95,004 2,771 1,019 1,655 3,570
Assets Held for Resale 321
Restricted Assets:
Net Pension Asset 1 2 2
Capital Assets:
Land and Other Non-depreciable Assets 192 103
Property, Plant, and Equipment 28 8,172 559 18
Accumulated Depreciation (28) (3,383) (494) (17)
Construction in Progress
Total Capital Assets 0 0 4,981 168 1
Other Noncurrent Assets 36,894 4,787
Total Assets 132,220 2,771 6,002 1,825 8,358
Deferred Outflows of Resources
Deferred Outflow Related to Pensions 70 5 114 109 21
Total Deferred Outflows of Resources 70 5 114 109 21
Liabilities
Current Liabilities:
Accounts Payable and Other Liabilities 69 1 80 42 2
Payable to:
Other Funds 7 10 3 1
Claims, Judgments, and Compensated Absences 28 1 31 62 3
Unearned Revenue 612
Total Current Liabilities 104 2 733 107 6
Noncurrent Liabilities:
Claims, Judgments, and Compensated Absences 25 1 28 55 3
Total Noncurrent Liabilities 25 1 28 55 3
Total Liabilities 129 3 761 162 9
Deferred Inflows of Resources
Deferred Inflow Related to Pensions 27 2 44 42 9
Total Deferred Inflows of Resources 27 2 44 42 9
Net Position
Net Investment in Capital Assets 4,981 167 1
Restricted for:
Disaster Relief Fund 10,500
Pensions 44 3 72 69 12
Other 1,870
Unrestricted 119,720 2,768 258 1,494 8,348
Total Net Position $ 132,134 $ 2,771 $ 5,311 $ 1,730 $ 8,361
150
S.D. Trust
Company
Prison Captive Professional Banking and
Industries Insurance Co. and Licensing Insurance Other Total
$ 545 $ 2,161 $ 12,736 $ 9,873 $ 8,476 $ 128,651
3 11 55 36 5 646
328 5 333
52 52
17 122
7,212
73 3 1 142
998 64 2,303
11 33 112 156
2,010 2,172 12,832 9,909 8,675 139,617
321
3 16 10 6 40
295
2,533 109 538 11,957
(1,860) (88) (303) (6,173)
267 267
673 0 21 0 502 6,346
41,681
2,686 2,172 12,869 9,919 9,183 188,005
170 851 532 298 2,170
170 0 851 532 298 2,170
203 5 482 3,658 648 5,190
45 75 12 35 188
55 246 200 94 720
41 823 1,476
344 5 1,626 3,870 777 7,574
48 217 176 83 636
48 0 217 176 83 636
392 5 1,843 4,046 860 8,210
66 329 201 114 834
66 0 329 201 114 834
673 19 502 6,343
10,500
107 538 341 190 1,376
1,870
1,618 2,167 10,991 5,863 7,815 161,042
$ 2,398 $ 2,167 $ 11,548 $ 6,204 $ 8,507 $ 181,131
151
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Revolving
Economic Federal
Development Second State Surplus Rural
and Initiative Injury Fair Property Rehabilitation
Operating Revenue:
Licenses, Permits, and Fees $ $ $ 1,641 $ $ 36
Use of Money and Property 853 517 65
Sales and Services 58 854 1,973
Administering Programs 29
Assessments 1
Other Revenue 159
Total Operating Revenue 911 1 3,200 1,973 101
Operating Expenses:
Personal Services and Benefits 331 22 1,112 697 55
Travel 3 10 5
Contractual Services 276 2,121 614 48
Supplies and Materials 6 439 975
Other 1,138 88 (255)
Depreciation/Amortization 122 9
Insurance Claims 941 2
Total Operating Expenses 1,754 963 3,892 2,302 (152)
Operating Income (Loss) (843) (962) (692) (329) 253
Nonoperating Revenue (Expenses):
Gain on Disposal of Assets 5
Investment Income 3,564 147 21 4 131
Other Expense (123)
Grant and Other Income 1,500 135
Total Nonoperating Revenue (Expenses) 4,941 147 26 4 266
Income (Loss) Before Capital Contributions
and Transfers 4,098 (815) (666) (325) 519
Capital Contributions and Transfers:
Capital Contributions 19
Transfers In 9,000
Transfers Out (1) (1,177)
Net Capital Contributions and Transfers 9,000 (1) 19 0 (1,177)
Change in Net Position 13,098 (816) (647) (325) (658)
Net Position at Beginning of Year 119,036 3,587 5,958 2,055 9,019
Net Position at End of Year $ 132,134 $ 2,771 $ 5,311 $ 1,730 $ 8,361
152
S.D. Trust
Company
Prison Captive Professional Banking and
Industries Insurance Co. and Licensing Insurance Other Total
$ $ $ 7,828 $ 5,456 $ 3,934 $ 18,895
3 1,438
3,781 (64) 213 454 929 8,198
95 124
1
512 53 17 741
3,781 (64) 8,648 5,963 4,883 29,397
1,039 5,274 3,328 2,244 14,102
13 560 156 175 922
321 30 3,134 2,045 849 9,438
2,030 240 35 184 3,909
10 981
87 12 46 276
943
3,490 30 9,230 5,564 3,498 30,571
291 (94) (582) 399 1,385 (1,174)
1 6
30 108 534 376 44 4,959
(1) (1) (125)
1,635
30 108 533 375 45 6,475
321 14 (49) 774 1,430 5,301
19
7 94 9,101
(180) (125) (145) (1,628)
(173) 0 (125) (145) 94 7,492
148 14 (174) 629 1,524 12,793
2,250 2,153 11,722 5,575 6,983 168,338
$ 2,398 $ 2,167 $ 11,548 $ 6,204 $ 8,507 $ 181,131
153
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Revolving
Economic Federal
Development Second State Surplus Rural
and Initiative Injury Fair Property Rehabilitation
Cash Flows from Operating Activities:
Receipts from Customers and Users $ 58 $ 1 $ 2,620 $ 1,587 $ 36
Receipts from Interfund Services Provided 29 224
Receipts from Federal Agencies 223
Receipts from Loan Payments 11,887 1,453
Payments to Suppliers and for Benefits and Claims (205) (2,657) (1,473) (64)
Payments for Employee Services (247) (24) (1,011) (623) (57)
Payments for Interfund Services Used (52) (313) (88) (2)
Payments for Loans Originated (16,275) (500)
Other Receipts (Payments) (107) (941) 159 20
Net Cash Provided (Used) by Operating
Activities (4,941) (964) (1,173) (130) 866
Cash Flows from Capital and Related Financing
Activities:
Capital Contributions 19
Purchases of Capital Assets (188)
Construction in Progress
Sales of Capital Assets 18
Net Cash Provided (Used) by Capital and Related
Financing Activities 0 0 (151) 0 0
Cash Flows from Noncapital Financing Activities:
Transfers In 9,000
Transfers Out (1) (1,175)
Services Provided to Others (110)
Grants and Other Noncapital Financing Activities 1,500 33 135
Net Cash Provided (Used) by Noncapital
Financing Activities 10,390 (1) 0 33 (1,040)
Cash Flows from Investing Activities:
Investment Income 3,603 145 5 7 132
Investment Expense (13)
Net Cash Provided (Used) by Investing Activities 3,590 145 5 7 132
Net Increase (Decrease) in Cash and Cash
Equivalents During the Fiscal Year 9,039 (820) (1,319) (90) (42)
Cash and Cash Equivalents at Beginning of Year 78,860 3,577 2,335 386 2,934
Cash and Cash Equivalents at End of Year $ 87,899 $ 2,757 $ 1,016 $ 296 $ 2,892
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Operating Income (Loss) $ (843) $ (962) $ (692) $ (329) $ 253
Depreciation/Amortization Expense 122 9
Bad Debt Expense (274)
Decrease/(Increase) in Assets:
Accounts Receivable 253 25 (10)
Interest, Dividends, and Penalties Receivable (61) 175
Loans and Notes Receivable (4,080) 713
Due From Other Funds
Due From Component Units
Due From Other Governments 93
Inventory 86
Other Assets (321)
Other Restricted Assets (1)
Restricted Net Pension Asset (1) (2) (2)
Decrease/(Increase) in Deferred Outflows of Resources:
Deferred Outflows Related to Pensions 49 (1) 45 54 20
Increase/(Decrease) in Liabilities:
Accounts Payable 28 (294) (51)
Accrued Liabilities 7 (1) 48 4 (2)
Compensated Absences Payable 28 (1) 11 (20)
Due To Other Funds (16) (1) 1
Due To Other Component Units
Due To Other Governments (2)
Unearned Revenue (418) (1)
Other Liabilities
Increase/(Decrease) in Deferred Inflows of Resources:
Deferred Inflows Related to Pensions 1 1 11 7
Net Cash Provided (Used) by Operating
Activities $ (4,941) $ (964) $ (1,173) $ (130) $ 866
154
S.D. Trust
Company
Prison Captive Professional Banking and
Industries Insurance Co. and Licensing Insurance Other Total
$ 1,106 $ 67 $ 8,523 $ 5,909 $ 4,859 $ 24,766
4,109 95 13 4,470
223
13,340
(2,309) (131) (3,098) (1,344) (770) (12,051)
(908) (38) (4,772) (2,932) (2,039) (12,651)
(1,762) (5) (847) (204) (190) (3,463)
(16,775)
30 53 6 (780)
236 (107) (69) 1,482 1,879 (2,921)
19
(87) (22) (297)
(32) (32)
1 19
(87) 0 0 0 (53) (291)
7 94 9,101
(180) (125) (145) (1,626)
(110)
1,668
(173) 0 (125) (145) 94 9,033
31 105 538 373 45 4,984
(1) (1) (15)
31 105 537 372 45 4,969
7 (2) 343 1,709 1,965 10,790
538 2,163 12,393 8,164 6,511 117,861
$ 545 $ 2,161 $ 12,736 $ 9,873 $ 8,476 $ 128,651
$ 291 $ (94) $ (582) $ 399 $ 1,385 $ (1,174)
87 12 46 276
(274)
268
114
(3,367)
(125) (5) (130)
(20) (20)
(12) 81
(142) 23 (33)
(2) (33) (110) (466)
(1)
(13) (8) (4) (30)
98 425 262 152 1,104
(33) (13) 46 692 (45) 330
13 11 37 7 124
16 22 74 31 161
7 (14) (4) (26) (53)
1 1
(2)
39 6 (374)
414 414
7 56 30 17 130
$ 236 $ (107) $ (69) $ 1,482 $ 1,879 $ (2,921)
155
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
June 30, 2020
(Expressed in Thousands)
Tele- Accounting Buildings
Self- Information communi- and and Central
Insurance Services cations Payroll Grounds Mail
Assets
Current Assets:
Cash and Cash Equivalents $ 48,913 $ 4,392 $ 1,844 $ 3,751 $ 1,220 $ 664
Receivables:
Interest and Dividends 92 13 6 17 2 3
Other Funds 791 2,520 1,423 1,315 842 329
Component Units 3 212 100
Other Governments
Other, net 6,601 1 16 5
Inventory 13 14 141
Other Assets 103 1,654 1,165 1,175 20
Total Current Assets 56,500 8,596 4,680 6,358 2,064 1,162
Restricted Assets:
Net Pension Asset 3 70 21 6 12 1
Capital Assets:
Property, Plant, and Equipment 13,197 4,560 13,183 1,521 669
Accumulated Depreciation (11,272) (3,541) (12,755) (1,247) (584)
Construction in Progress 1,057
Total Capital Assets 0 1,925 1,019 1,485 274 85
Total Assets 56,503 10,591 5,720 7,849 2,350 1,248
Deferred Outflows of Resources
Deferred Outflow Related to Pensions 172 3,623 1,146 314 649 67
Total Deferred Outflows of Resources 172 3,623 1,146 314 649 67
Liabilities
Current Liabilities:
Accounts Payable and Other Liabilities 889 1,194 793 214 340 61
Payable to:
Other Funds 112 118 241 139 55 6
Component Units
Bonds, Notes, and Leases Payable 340 133 17
Claims, Judgments, and Compensated Absences 17,772 1,299 584 154 192 41
Unearned Revenue 12,826 198
Total Current Liabilities 31,599 3,149 1,751 507 587 125
Noncurrent Liabilities:
Bonds, Notes, and Leases Payable 813 24
Claims, Judgments, and Compensated Absences 202L 202M
47 1,145 515 136 169 37
Other Noncurrent Liabilities 55
Total Noncurrent Liabilities 102 1,958 515 136 169 61
Total Liabilities 31,701 5,107 2,266 643 756 186
Deferred Inflows of Resources
Deferred Inflow Related to Pensions 65 1,419 431 122 250 26
Total Deferred Inflows of Resources 65 1,419 431 122 250 26
Net Position
Net Investment in Capital Assets 773 887 1,484 274 43
Restricted for Pensions 110 2,274 736 198 411 42
Unrestricted 24,799 4,641 2,546 5,716 1,308 1,018
Total Net Position $ 24,909 $ 7,688 $ 4,169 $ 7,398 $ 1,993 $ 1,103
156
Public
Digital Entity Fleet
Dakota Pool for and Travel Workers
Network Liability Management Personnel Compensation Other Total
$ 550 $ 12,342 $ 829 $ 1,246 $ 3,682 $ 5,116 $ 84,549
3 45 4 5 16 20 226
44 1,226 113 1,119 9,722
118 104 43 580
192 192
8 18 21 41 90 6,801
845 1,013
64 37 6 203 77 4,504
787 12,442 2,184 1,370 3,942 7,502 107,587
2 2 3 12 1 21 154
2,207 65,210 11,148 111,695
(2,053) (42,761) (4,889) (79,102)
1,057
154 0 22,449 0 0 6,259 33,650
943 12,444 24,636 1,382 3,943 13,782 141,391
94 115 135 646 46 1,108 8,115
94 115 135 646 46 1,108 8,115
30 51 374 223 17 571 4,757
16 11 272 51 9 378 1,408
53 12 65
4,602 64 5,156
52 1,767 46 245 4,084 472 26,708
14 13,038
98 1,829 5,347 531 4,110 1,499 51,132
11,473 209 12,519
46 3,151 36 213 28,187 411 34,093
55
46 3,151 11,509 213 28,187 620 46,667
144 4,980 16,856 744 32,297 2,119 97,799
36 44 53 250 18 430 3,144
36 44 53 250 18 430 3,144
153 6,370 5,966 15,950
60 73 85 408 29 699 5,125
644 7,462 1,407 626 (28,355) 5,676 27,488
$ 857 $ 7,535 $ 7,862 $ 1,034 $ (28,326) $ 12,341 $ 48,563
157
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Tele- Accounting Buildings
Self- Information communi- and and Central
Insurance Services cations Payroll Grounds Mail
Operating Revenue:
Use of Money and Property $ $ $ $ $ $
Sales and Services 187,088 25,292 18,034 5,213 6,882 3,158
Other Revenue 6,546 9 13 4 4
Total Operating Revenue 193,634 25,292 18,043 5,226 6,886 3,162
Operating Expenses:
Personal Services and Benefits 1,132 20,600 7,395 1,773 4,211 451
Travel 8 115 127 7
Contractual Services 31,507 4,943 10,482 3,336 2,170 196
Supplies and Materials 53 208 575 80 766 2,564
Grant and Other 5
Interest 1 1 9 6
Depreciation/Amortization 427 500 240 33 67
Insurance Claims 137,404
Total Operating Expenses 170,110 26,294 19,088 5,436 7,180 3,284
Operating Income (Loss) 23,524 (1,002) (1,045) (210) (294) (122)
Nonoperating Revenue (Expenses):
Gain on Disposal of Assets 38 13 5
Loss on Disposal of Assets (4)
Investment Income 702 112 47 174 22 24
Other Expense (3) (1)
Grant and Other Income 19 23
Total Nonoperating Revenue (Expenses) 699 165 83 173 27 24
Income (Loss) Before Capital Contributions
Income (Loss) Before Transfers 24,223 (837) (962) (37) (267) (98)
Transfers:
Capital Contribution 19
Transfers In 599
Net Transfers 0 0 0 599 19 0
Change in Net Position 24,223 (837) (962) 562 (248) (98)
Net Position at Beginning of Year 686 8,525 5,131 6,836 2,241 1,201
Net Position at End of Year $ 24,909 $ 7,688 $ 4,169 $ 7,398 $ 1,993 $ 1,103
158
Public
Digital Entity Fleet
Dakota Pool for and Travel Workers
Network Liability Management Personnel Compensation Other Total
$ $ $ $ $ $ 9 $ 9
751 3,680 15,104 4,583 5,907 12,041 287,733
88 26 82 168 6,940
751 3,768 15,130 4,583 5,989 12,218 294,682
548 726 835 4,116 302 7,385 49,474
6 46 4 58 390 761
158 789 2,597 827 183 1,837 59,025
5 9 6,116 181 11 1,337 11,905
5
523 14 554
35 4,584 420 6,306
1,548 5,938 552 145,442
752 3,118 14,659 5,182 6,434 11,935 273,472
(1) 650 471 (599) (445) 283 21,210
201 17 274
(89) (33) (126)
24 438 50 45 147 196 1,981
(2) (1) (1) (8)
42
24 436 162 45 146 179 2,163
23 1,086 633 (554) (299) 462 23,373
19
273 590 1,462
0 0 0 273 0 590 1,481
23 1,086 633 (281) (299) 1,052 24,854
834 6,449 7,229 1,315 (28,027) 11,289 23,709
$ 857 $ 7,535 $ 7,862 $ 1,034 $ (28,326) $ 12,341 $ 48,563
159
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Tele- Accounting Buildings
Self- Information communi- and and Central
Insurance Services cations Payroll Grounds Mail
Cash Flows from Operating Activities:
Receipts from Customers and Users $ 89,328 $ 403 $ 3,108 $ 555 $ 7 $ 184
Receipts from Interfund Services Provided 98,646 24,642 14,733 4,828 7,316 2,902
Payments to Suppliers and for Benefits and Claims (165,373) (4,473) (10,146) (2,245) (2,087) (2,438)
Payments for Employee Services (984) (18,279) (6,675) (1,576) (3,827) (404)
Payments for Interfund Services Used (1,556) (1,353) (1,289) (1,288) (825) (104)
Other Receipts (Payments) 8,061 9 13 6 4
Net Cash Provided (Used) by Operating
Activities 28,122 940 (260) 287 590 144
Cash Flows from Capital and Related Financing
Activities:
Purchases of Capital Assets (462) (210) (105)
Construction in Progress (258)
Sales of Capital Assets 38 13 7
Payments on Capital Lease Obligations (119) (138) (69)
Net Cash Provided (Used) by Capital and Related
Financing Activities 0 (543) (335) (258) (98) (69)
Cash Flows from Noncapital Financing Activities:
Transfers In 599
Grants and Other Noncapital Financing Activities 23
Net Cash Provided (Used) by Noncapital
Financing Activities 0 0 23 599 0 0
Cash Flows from Investing Activities:
Investment Income 767 119 51 174 21 25
Investment Expense (3) (1)
Net Cash Provided (Used) by Investing Activities 764 119 51 173 21 25
Net Increase (Decrease) in Cash and Cash
Equivalents During the Fiscal Year 28,886 516 (521) 801 513 100
Cash and Cash Equivalents at Beginning of Year 20,027 3,876 2,365 2,950 707 564
Cash and Cash Equivalents at End of Year $ 48,913 $ 4,392 $ 1,844 $ 3,751 $ 1,220 $ 664
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Operating Income (Loss) $ 23,524 $ (1,002) $ (1,045) $ (210) $ (294) $ (122)
Adjustments to Reconcile Operating Income (Loss):
Depreciation/Amortization Expense 427 500 240 33 67
Interest Expense 1 9 6
Decrease/(Increase) in Assets:
Accounts Receivable (1,156) 1 (4)
Due From Other Funds (791) (445) (206) 131 442 (66)
Due From Component Units 13 38
Due From Other Governments
Inventory (1) 24 191
Other Assets 3,055 (407) (235) (94)
Restricted Net Pension Asset (2) (54) (17) (5) (10) (1)
Decrease/(Increase) in Deferred Outflows of Resources:
Deferred Outflows Related to Pensions 98 2,039 481 166 337 39
Increase/(Decrease) in Liabilities:
Accounts Payable 58 (123) (67) (42) (1) 28
Accrued Liabilities 10 112 48 4 19 1
Compensated Absences Payable 36 22 122 12 (1) 4
Due To Other Funds 11 (27) 28 28 20 (1)
Due To Component Units
Due To Other Governments 1 6 (1)
Unearned Revenue 1,678 198
Policy Claim Liabilities 1,594
Increase/(Decrease) in Deferred Inflows of Resources:
Deferred Inflows Related to Pensions 6 200 84 19 39 3
Net Cash Provided (Used) by Operating Activities $ 28,122 $ 940 $ (260) $ 287 $ 590 $ 144
Noncash Investing, Capital, and Financing Activities:
Gain (Loss) on Disposal of Capital Assets $ $ 33 $ 13 $ $ 5 $
Capital Lease Obligations Entered Into 1,204
Transfers In (Out) of Capital Assets 19
160
Public
Digital Entity Fleet
Dakota Pool for and Travel Workers
Network Liability Management Personnel Compensation Other Total
$ 413 $ 1,093 $ 2,438 $ 17 $ 1,441 $ 2,739 $ 101,726
328 2,586 13,107 4,705 4,552 8,573 186,918
(110) (1,872) (7,326) (498) (5,398) (2,670) (204,636)
(489) (619) (760) (3,767) (281) (6,410) (44,071)
(114) (122) (1,504) (547) (33) (1,715) (10,450)
1 14 11 178 8,297
28 1,067 5,969 (79) 281 695 37,784
(69) (741) (941) (2,528)
(258)
474 17 549
(4,944) (73) (5,343)
(69) 0 (5,211) 0 0 (997) (7,580)
273 589 1,461
23
0 0 0 273 0 589 1,484
25 442 46 45 150 198 2,063
(2) (1) (1) (8)
25 440 46 45 149 197 2,055
(16) 1,507 804 239 430 484 33,743
566 10,835 25 1,007 3,252 4,632 50,806
$ 550 $ 12,342 $ 829 $ 1,246 $ 3,682 $ 5,116 $ 84,549
$ (1) $ 650 $ 471 $ (599) $ (445) $ 283 $ 21,210
35 4,584 420 6,306
506 14 536
(6) (4) (10) (32) 39 (1,172)
23 259 133 (414) (934)
(26) 181 1 14 221
(26) (26)
(492) (278)
(53) (38) 18 6 13 2,265
(1) (2) (2) (10) (1) (17) (122)
46 15 71 307 24 527 4,150
(1) (66) (6) 43 (177)
3 3 2 (2) 3 17 220
5 15 (5) 38 5 18 271
(2) (2) (59) (7) 4 169 162
28 4 32
(2) 4
(3) 8 1,881
412 714 2,720
6 18 9 47 3 81 515
$ 28 $ 1,067 $ 5,969 $ (79) $ 281 $ 695 $ 37,784
$ $ $ 112 $ $ $ (17) $ 146
4,056 120 5,380
19
161
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST FUNDS
June 30, 2020
(Expressed in Thousands)
Common
School Child's Own Corrections Other Total
Assets
Cash and Cash Equivalents $ 130 $ 315 $ 933 $ 1,070 $ 2,448
Receivables:
Due From Other Funds 119 119
Investment Income 384 1 2 387
Other 83 28 111
Total Receivables 467 29 119 2 617
Investments, at Fair Value:
Pooled Investment Funds 265,270 265,270
Total Investments 265,270 0 0 0 265,270
Properties, at Cost 14,162 50 14,212
Other Assets 13 13
Total Assets 280,029 344 1,052 1,135 282,560
Liabilities
Payables:
Accounts Payable and Other Liabilities 20 147 39 206
Due To Other Funds 59 26 85
Total Liabilities 20 147 59 65 291
Net Position - Restricted for Others $ 280,009 $ 197 $ 993 $ 1,070 $ 282,269
162
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Common
School Child's Own Corrections Other Total
Additions
Contributions:
From Clients and Inmates $ $ $ 7,815 $ 1,615 $ 9,430
Other 7,922 7,922
Total Contributions 7,922 0 7,815 1,615 17,352
Investment Income:
From Investing Activities
Net Increase (Decrease) in Fair
Value of Investments 8,406 8,406
Real Estate 380 380
Pooled Interest and Dividends 5,038 5 5,043
Net Investment Income (Loss) 13,824 5 0 0 13,829
From Security Lending Activities
Securities Lending Income 28 28
Escheated Property 137 137
Miscellaneous Income 717 37 754
Total Additions 21,911 722 7,815 1,652 32,100
Deductions
Distribution to School Districts 12,695 12,695
Payments Made for Trust Purposes 715 8,147 1,498 10,360
Administrative Expenses 8 8
Total Deductions 12,695 715 8,147 1,506 23,063
Change in Net Position 9,216 7 (332) 146 9,037
Net Position at Beginning of Year 270,793 190 1,325 924 273,232
Net Position at End of Year $ 280,009 $ 197 $ 993 $ 1,070 $ 282,269
163
164
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
June 30, 2020
(Expressed in Thousands)
Department Social State
of Revenue Services Auditor State
Tax Child Payroll Clerk of
Collections Support Withholding Courts Other Total
Assets
Cash and Cash Equivalents $ 25,122 $ 3,608 $ 7,643 $ 7,485 $ 3,476 $ 47,334
Receivables:
Taxes Receivable, net 47,772 47,772
Interest and Dividends Receivable 10 1 11
Other 648 106 754
Total Receivables 48,430 0 0 0 107 48,537
Total Assets $ 73,552 $ 3,608 $ 7,643 $ 7,485 $ 3,583 $ 95,871
Liabilities
Payables:
Accounts Payable and Other Liabilities $ 1,248 $ 3,608 $ 36 $ 7,485 $ 2,869 $ 15,246
Due To Other Governments 72,304 7,607 714 80,625
Total Liabilities $ 73,552 $ 3,608 $ 7,643 $ 7,485 $ 3,583 $ 95,871
165
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF CHANGES
IN ASSETS AND LIABILITIES
AGENCY FUNDS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Balance Balance
July 1, 2019 Additions Deductions June 30, 2020
Department of Revenue - Tax Collections
Assets:
Cash and Cash Equivalents $ 1,655 $ 433,178 $ 409,711 $ 25,122
Accounts Receivable 569 648 569 648
Taxes Receivable, net 45,856 47,785 45,869 47,772
Interest and Dividends Receivable 10 10
Total Assets $ 48,080 $ 481,621 $ 456,149 $ 73,552
Liabilities:
Accounts Payable and Other Liabilities $ 1,201 $ 293 $ 246 $ 1,248
Due To Other Governments 46,879 481,328 455,903 72,304
Total Liabilities $ 48,080 $ 481,621 $ 456,149 $ 73,552
Social Services - Child Support
Assets:
Cash and Cash Equivalents $ 2,526 $ 133,479 $ 132,397 $ 3,608
Total Assets $ 2,526 $ 133,479 $ 132,397 $ 3,608
Liabilities:
Accounts Payable and Other Liabilities $ 2,526 $ 133,479 $ 132,397 $ 3,608
Total Liabilities $ 2,526 $ 133,479 $ 132,397 $ 3,608
State Auditor - Payroll Withholding
Assets:
Cash and Cash Equivalents $ 8,074 $ 247,772 $ 248,203 $ 7,643
Total Assets $ 8,074 $ 247,772 $ 248,203 $ 7,643
Liabilities:
Accounts Payable and Other Liabilities $ 41 $ 12,458 $ 12,463 $ 36
Due To Other Governments 8,033 235,314 235,740 7,607
Total Liabilities $ 8,074 $ 247,772 $ 248,203 $ 7,643
State Clerk of Courts
Assets:
Cash and Cash Equivalents $ 6,659 $ 15,262 $ 14,436 $ 7,485
Total Assets $ 6,659 $ 15,262 $ 14,436 $ 7,485
Liabilities:
Accounts Payable and Other Liabilities $ 6,659 $ 15,262 $ 14,436 $ 7,485
Total Liabilities $ 6,659 $ 15,262 $ 14,436 $ 7,485
Continued on next page
166
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF CHANGES
IN ASSETS AND LIABILITIES
AGENCY FUNDS (continued)
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Balance Balance
July 1, 2019 Additions Deductions June 30, 2020
Other Agency Funds
Assets:
Cash and Cash Equivalents $ 1,472 $ 83,857 $ 81,853 $ 3,476
Accounts Receivable 54 106 54 106
Interest and Dividends Receivable 1 1 1 1
Total Assets $ 1,527 $ 83,964 $ 81,908 $ 3,583
Liabilities:
Accounts Payable and Other Liabilities $ 737 $ 82,882 $ 80,750 $ 2,869
Due To Other Governments 790 1,082 1,158 714
Total Liabilities $ 1,527 $ 83,964 $ 81,908 $ 3,583
Total All Agency Funds
Assets:
Cash and Cash Equivalents $ 20,386 $ 913,548 $ 886,600 $ 47,334
Accounts Receivable 623 754 623 754
Taxes Receivable, net 45,856 47,785 45,869 47,772
Interest and Dividends Receivable 1 11 1 11
Total Assets $ 66,866 $ 962,098 $ 933,093 $ 95,871
Liabilities:
Accounts Payable and Other Liabilities $ 11,164 $ 244,374 $ 240,292 $ 15,246
Due To Other Governments 55,702 717,724 692,801 80,625
Total Liabilities $ 66,866 $ 962,098 $ 933,093 $ 95,871
167
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF NET POSITION
COMPONENT UNITS
June 30, 2020
(Expressed in Thousands)
Business-type Activities
Science and
Housing Technology Higher
Authority Authority Education Nonmajor Total
Assets
Current Assets:
Cash and Cash Equivalents $ 254,250 $ 20,424 $ 280,869 $ 19,039 $ 574,582
Receivables:
Interest and Dividends 4,677 76 1,569 123 6,445
Primary Government 1,144 1,144
Other Governments 16,703 16,703
Loans and Notes, net 36,478 5,516 829 42,823
Other, net 642 2,571 43,177 468 46,858
Investments 123,106 43,478 481 167,065
Restricted Assets:
Investments 2,536 2,536
Inventory 3,530 2,451 6,841 12,822
Other Assets 416 643 5,850 120 7,029
Total Current Assets 423,099 26,165 405,147 23,596 878,007
Investments 1,123,308 412,040 1,406 1,536,754
Assets Held for Resale 3,855 3,855
Restricted Assets:
Cash and Cash Equivalents 31,238 2,602 33,840
Investments 160,735 704 161,439
Net Pension Asset 16 52 1,546 1,614
Other 30,027 30,027
Capital Assets:
Land and Other Non-depreciable Assets 220 19,821 46,086 66,127
Property, Plant, and Equipment 10,925 77,195 2,033,786 24,124 2,146,030
Accumulated Depreciation (6,066) (18,134) (816,068) (5,023) (845,291)
Construction in Progress 1,824 103,824 105,648
Total Capital Assets 5,079 80,706 1,367,628 19,101 1,472,514
Other Noncurrent Assets, net 389,528 8,934 70,618 8,090 477,170
Total Assets 1,941,030 115,857 2,478,979 59,354 4,595,220
Deferred Outflows of Resources
Deferred Outflow Related to Pensions 901 2,943 80,241 84,085
Deferred Swap Outflow 9,401 9,401
Deferred Forward Contract Outflow 949 949
Deferred Outflow on Debt Refunding 2,879 11,846 14,725
Total Deferred Outflows of Resources 14,130 2,943 92,087 0 109,160
Liabilities
Current Liabilities:
Accounts Payable and Other Liabilities 1,358 1,988 46,238 113 49,697
Payable to Primary Government 92 1,008 1,100
Escrow Payable 3,352 3,352
Bonds, Notes, and Leases Payable 51,582 34,295 503 86,380
Claims, Judgments, and Compensated Absences 337 758 14,182 15,277
Accrued Interest Payable 6,294 3,747 112 10,153
Unearned Revenue 26,200 3,260 29,460
Advances from Primary Government 1,130 1,130
Other Current Liabilities 18,962 551 19,513
Total Current Liabilities 63,015 2,746 144,632 5,669 216,062
Noncurrent Liabilities:
Bonds, Notes, and Leases Payable 1,266,954 6,000 506,691 9,973 1,789,618
Claims, Judgments, and Compensated Absences 298 758 30,680 31,736
Federal Capital Contribution Refundable Advance 36,603 36,603
Advances from Primary Government 18,126 18,126
Other Noncurrent Liabilities 11,300 12,398 1,186 24,884
Total Noncurrent Liabilities 1,278,552 6,758 586,372 29,285 1,900,967
Total Liabilities 1,341,567 9,504 731,004 34,954 2,117,029
Deferred Inflows of Resources
Deferred Inflow Related to Pensions 345 1,267 31,494 33,106
Deferred Inflow on Gain on Debt Refunding 2,758 216 2,974
Deferred Inflow on Swaps 331 331
Deferred Forward Contract Inflow 86 86
Total Deferred Inflows of Resources 3,520 1,267 31,710 0 36,497
Net Position
Net Investment in Capital Assets (951) 80,706 872,148 522 952,425
Restricted for:
Debt Service 516,496 3,416 5,000 524,912
HOME and NSP Program 79,510 79,510
Higher Education - Expendable 258,324 258,324
Higher Education - Nonexpendable 485,391 485,391
Experiments 729 729
Mine Closure 1,521 1,521
Sanford Center for Science Education 83 83
Maintenance Support Facility 4,676 4,676
Indemnification 7,500 7,500
Pensions 572 1,728 50,293 52,593
Other 14,446 14,446
Unrestricted 11,086 138,780 18,878 168,744
Total Net Position $ 610,073 $ 108,029 $ 1,808,352 $ 24,400 $ 2,550,854
168
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
COMPONENT UNITS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Business-type Activities
Science and
Housing Technology Higher
Authority Authority Education Nonmajor Total
Operating Revenue:
Tuition and Fees (net of discounts and allowances
for scholarships of Higher Education of $45,557) $ $ $ 244,928 $ $ 244,928
Use of Money and Property 107,610 476 108,086
Sales and Services (net of discounts and allowances
for scholarships of Higher Education of $10,936) 278 105,625 3,774 109,677
Administering Programs 30,896 29,814 113,755 303 174,768
Other Revenue 8,618 127 83,214 52 92,011
Total Operating Revenue 147,124 30,219 547,522 4,605 729,470
Operating Expenses:
Personal Services and Benefits 4,836 18,773 509,864 533,473
Travel 315 177 15,338 12 15,842
Contractual Services 8,045 8,199 110,624 1,765 128,633
Supplies and Materials 3,202 3,672 57,290 184 64,348
Grants and Subsidies 26,060 45,197 239 71,496
Other 3,968 451 4,419
Interest 37,045 101 430 37,576
Provisions for Loan Loss (Recovery) 4,081 (10) 4,071
Depreciation/Amortization 394 2,006 61,490 850 64,740
Total Operating Expenses 83,978 32,827 803,872 3,921 924,598
Operating Income (Loss) 63,146 (2,608) (256,350) 684 (195,128)
Nonoperating Revenue (Expenses):
Gain on Disposal of Assets 745 745
Loss on Disposal of Assets (325) (2,930) (3,255)
Investment Income 760 62,221 832 63,813
Interest Expense (18,577) (604) (19,181)
Other Expense (241) (20,854) (1,501) (22,596)
State Aid from Primary Government 229,545 229,545
Federal Appropriation 5,881 5,881
Grant and Other Income 44,708 44,708
Total Nonoperating Revenue (Expenses) 0 194 299,994 (528) 299,660
Income (Loss) Before Capital Grants
and Additions to Endowments 63,146 (2,414) 43,644 156 104,532
Capital Grants 2,926 6,967 9,893
Additions to Endowments 26,141 26,141
Change in Net Position 63,146 512 76,752 156 140,566
Net Position at Beginning of Year, as restated 546,927 107,517 1,731,600 24,244 2,410,288
Net Position at End of Year $ 610,073 $ 108,029 $ 1,808,352 $ 24,400 $ 2,550,854
169
STATE OF SOUTH DAKOTA
STATEMENT OF CASH FLOWS
HIGHER EDUCATION
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Higher
Education
Cash Flows from Operating Activities:
Tuition and Fees $ 244,545
Auxiliaries 55,039
Sales & Services - General 50,864
Federal Contracts & Grants 76,595
State Contracts & Grants 10,985
Private Contracts & Grants 24,497
Other Revenue and Additions 303
Loans Issued to Students (2,096)
Loans Collected from Students 3,298
Student Loan Interest 612
Payments for Personal Services Expenditures (452,176)
Payments for Travel Expenditures (14,892)
Payments for Contractual Expenditures (108,962)
Payments for Supply Expenditures and Non-Capitalized Equipment (56,357)
Payments for Grant and Subsidy Expenditures (46,236)
Payments for Other Expenditures (146)
Foundation Activity 13,988
Net Cash Provided (Used) by Operating Activities (200,139)
Cash Flows from Noncapital Financing Activities:
General Fund Appropriations 229,545
School & Public Lands 3,145
Federal Fund Appropriations 7,576
Federal loan Disbursements (144,370)
Federal Loan Receipts 144,370
Private Loan Disbursements (1,273)
Private Loan Receipts 1,273
Federal Capital Contribution - Student Loan (3,188)
Other Revenues & Additions 40,256
Payments for Other Expenditures (9,190)
Foundation Activity 44,916
Net Cash Provided (Used) by Noncapital Financing Activities 313,060
Cash Flows from Capital and Related Financing Activities:
Capital Grants & Contracts 5,203
Proceeds from Capital Debt 86,916
Revenue Bond Discounts and Related Costs (7,895)
Sale of Capital Asset 5,504
Principal Paid on Capital Debt and Leases (84,941)
Interest Paid on Capital Debt and Leases (20,745)
Purchase of Capital Assets (127,610)
Foundation Activity 5,579
Net Cash Provided (Used) by Capital and Related Financing Activities (137,989)
Cash Flows from Investing Activities:
Investment Income 8,280
Foundation Activity 5,103
Net Cash Provided (Used) by Investing Activities 13,383
Net Increase (Decrease) in Cash and Cash Equivalents during the
Fiscal Year (11,685)
Cash and Cash Equivalents at Beginning of Year 323,792
Cash and Cash Equivalents at End of Year $ 312,107
Continued on next page
170
STATE OF SOUTH DAKOTA
STATEMENT OF CASH FLOWS
HIGHER EDUCATION
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Higher
Education
Reconcilation of Operating Income (Loss) to Net Cash Provided (Used)
by Operating Activities
Operating Income (Loss) $ (256,350)
Adjustments to Reconcile Operating Income (Loss):
Depreciation Expense 61,490
Bad Debt Expense 285
Loan Cancellation Expense 561
Pension Adjustment 45,373
Foundation Activity (50,600)
Decrease/(Increase) in Assets:
Accounts Receivable Students 280
Accounts Receivable - Dept 2,124
Interest Receivable (56)
Notes Receivable 2,876
Due From Federal Sources 158
Due From Primary Govt 328
Due from Component Unit 358
Prepaid Expense and Deferred Charges (345)
Inventory 597
Increase/(Decrease) in Liabilities:
Accounts Payable (6,568)
Accrued Wages & Benefits 1,642
Due to Federal Sources 633
Due to Primary Government (56)
Due To Component Unit (345)
Student Deposits (127)
Compensated Absences 1,752
Other Accrued Liabilities 45
Unearned Revenue (4,164)
Agency Funds Held for Others (30)
Net Cash Provided (Used) by Operating Activities $ (200,139)
Noncash Investing, Capital and Financing Activities:
Transfers In (Out) of Capital Assets $ 283
Gain or (Loss) on Disposal of Capital Assets (2,930)
Bond Proceeds Deposited Directly into an Escrow Account 4,507
171
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR COMPONENT UNITS
June 30, 2020
(Expressed in Thousands)
Business-type Activities
S.D. Economic Value S.D. S.D. S.D. Property
Development Added Ellsworth Authority and Casualty
Finance Finance Development Captive Captive
Authority Authority Authority Insurance Co. Insurance Co. Total
Assets
Current Assets:
Cash and Cash Equivalents $ 1,288 $ 793 $ 5,001 $ 5,335 $ 6,622 $ 19,039
Receivables:
Interest and Dividends 65 1 26 31 123
Loans and Notes, net 661 168 829
Other, net 466 2 468
Investments 481 481
Restricted Assets:
Investments 2,536 2,536
Other Assets 45 75 120
Total Current Assets 5,031 962 5,512 5,361 6,730 23,596
Investments 1,406 1,406
Assets Held for Resale 3,855 3,855
Restricted Assets:
Cash and Cash Equivalents 2,602 2,602
Investments 704 704
Capital Assets:
Property, Plant, and Equipment 24,124 24,124
Accumulated Depreciation (5,023) (5,023)
Total Capital Assets 0 0 19,101 0 0 19,101
Other Noncurrent Assets, net 6,790 1,250 50 8,090
Total Assets 16,533 2,212 28,518 5,361 6,730 59,354
Liabilities
Current Liabilities:
Accounts Payable and Other Liabilities 5 84 8 16 113
Bonds, Notes, and Leases Payable 420 83 503
Accrued Interest Payable 105 7 112
Unearned Revenue 3,260 3,260
Advances from Primary Government 1,130 1,130
Other Current Liabilities 114 437 551
Total Current Liabilities 530 90 4,474 122 453 5,669
Noncurrent Liabilities:
Bonds, Notes, and Leases Payable 7,135 1,217 1,621 9,973
Advances from Primary Government 18,126 18,126
Other Noncurrent Liabilities 847 308 31 1,186
Total Noncurrent Liabilities 7,982 1,217 19,747 308 31 29,285
Total Liabilities 8,512 1,307 24,221 430 484 34,954
Net Position
Net Investment in Capital Assets 522 522
Restricted for:
Debt Service 5,000 5,000
Unrestricted 3,021 905 3,775 4,931 6,246 18,878
Total Net Position $ 8,021 $ 905 $ 4,297 $ 4,931 $ 6,246 $ 24,400
172
STATE OF SOUTH DAKOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
NONMAJOR COMPONENT UNITS
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Business-type Activities
S.D. Economic Value S.D. S.D. S.D. Property
Development Added Ellsworth Authority and Casualty
Finance Finance Development Captive Captive
Authority Authority Authority Insurance Co. Insurance Co. Total
Operating Revenue:
Use of Money and Property $ 431 $ 45 $ $ $ $ 476
Sales and Services 2,675 214 885 3,774
Administering Programs 303 303
Other Revenue 4 48 52
Total Operating Revenue 431 49 3,026 214 885 4,605
Operating Expenses:
Travel 12 12
Contractual Services 50 1,539 56 120 1,765
Supplies and Materials 184 184
Grants and Subsidies 239 239
Other 115 64 272 451
Interest 430 430
Provisions for Loan Loss (Recovery) (10) (10)
Depreciation/Amortization 850 850
Total Operating Expenses 480 (10) 2,939 120 392 3,921
Operating Income (Loss) (49) 59 87 94 493 684
Nonoperating Revenue (Expenses):
Gain on Disposal of Assets 745 745
Investment Income 274 1 12 252 293 832
Interest Expense (13) (591) (604)
Other Expense (1,500) (1) (1,501)
Total Nonoperating Revenue (Expenses) (1,226) (12) 166 252 292 (528)
Change in Net Position (1,275) 47 253 346 785 156
Net Position at Beginning of Year 9,296 858 4,044 4,585 5,461 24,244
Net Position at End of Year $ 8,021 $ 905 $ 4,297 $ 4,931 $ 6,246 $ 24,400
173
STATE OF SOUTH DAKOTA
STATEMENT OF CASH FLOWS
VALUE ADDED FINANCE AUTHORITY
For the Fiscal Year Ended June 30, 2020
(Expressed in Thousands)
Value
Added
Finance
Authority
Cash Flows from Operating Activities:
Receipts from Customers and Users $ 4
Receipts from Loan Payments 255
Payments for Loans Originated (360)
Net Cash Provided (Used) by Operating Activities (101)
Cash Flows From Noncapital Financing Activities:
Principal Paid on Capital Debt and Leases (82)
Interest Paid on Capital Debt and Leases (14)
Net Cash Provided (Used) by Noncapital Financing Activities (96)
Cash Flows from Investing Activities:
Investment Income 1
Net Cash Provided (Used) by Investing Activities 1
Net Increase (Decrease) in Cash and Cash Equivalents
during the Fiscal Year (196)
Cash and Cash Equivalents at Beginning of Year 989
Cash and Cash Equivalents at End of Year $ 793
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating Income (Loss) $ 59
Adjustments to Reconcile Operating Income (Loss):
Bad Debt Expense 10
Decrease/(Increase) in Assets:
Notes Receivable (168)
Other Assets (2)
Net Cash Provided (Used) by Operating Activities $ (101)
174
STATISTICAL SECTION
STATISTICAL SECTION
STATISTICAL SECTION
This section of the State of South Dakota’s Comprehensive Annual Financial Report presents detailed information as
a context for understanding what the information in the financial statements, notes to the financial statements, and
required supplementary information says about the State’s overall financial health.
FINANCIAL TRENDS INFORMATION ......................................................................................................... 176
These schedules present trend information to help the reader understand how the State’s financial
performance and fiscal health have changed over time.
Net Position by Component.................................................................................................................. 176
Changes in Net Position ....................................................................................................................... 177
Fund Balances, Governmental Funds .................................................................................................. 178
Changes in Fund Balances, All Governmental Funds ......................................................................... 179
REVENUE CAPACITY INFORMATION ........................................................................................................ 180
These schedules contain information to help the reader understand the State’s capacity to raise
revenues and the sources of those revenues.
Sales Tax Revenue Payers by Industry ............................................................................................... 180
Taxable Sales by Industry .................................................................................................................... 182
DEBT CAPACITY INFORMATION ............................................................................................................... 183
These schedules present information to help the reader understand and assess the State’s
levels of outstanding debt and the State’s ability to issue additional debt in the future.
Ratios of Outstanding Long-Term Debt ............................................................................................... 183
Pledged-Revenue Coverage ................................................................................................................ 184
DEMOGRAPHIC AND ECONOMIC INFORMATION ................................................................................... 185
These schedules contain demographic and economic indicators to help the reader understand
the environment within which the State’s financial activities take place.
Population .......................................................................................................................................... 185
Total Personal Income ......................................................................................................................... 185
Unemployment Rate ............................................................................................................................ 186
Per Capita Personal Income ................................................................................................................ 186
Nonfarm Wage and Salary Employment by Industry .......................................................................... 187
Expanded and New Industries ............................................................................................................ 187
Employment by Industry Type .............................................................................................................. 188
OPERATING INFORMATION ....................................................................................................................... 189
These schedules offer operating data to help the reader understand how the information in the
State’s financial report relates to the services it provides and the activities it performs.
Full-Time Equivalent State Employees by Function of Government ................................................... 189
Capital Asset Statistics by Function .................................................................................................... 190
Operating Indicators by Function ........................................................................................................ 192
175
State of South Dakota
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting, Dollars Expressed in Thousands)
Fiscal Year
2020 2019 2018 2017 2016
Governmental Activities:
Net Investment in Capital Assets $ 4,259,851 $ 4,126,405 $ 4,051,612 $ 3,961,256 $ 3,804,409
Restricted 1,726,738 1,755,692 1,751,888 1,588,336 1,509,441
Unrestricted 586,958 363,208 283,343 267,296 254,579
Total Governmental Activities Net Position $ 6,573,547 $ 6,245,305 $ 6,086,843 $ 5,816,888 $ 5,568,429
Business-type Activities:
Net Investment in Capital Assets $ 6,552 $ 6,650 $ 7,027 $ 7,060 $ 6,357
Restricted 14,758 5,821 6,782 5,085 5,481
Unrestricted 782,424 739,281 707,805 684,730 660,697
Total Business-type Activities Net Position $ 803,734 $ 751,752 $ 721,614 $ 696,875 $ 672,535
Primary Government:
Net Investment in Capital Assets $ 4,266,403 $ 4,133,055 $ 4,058,639 $ 3,968,316 $ 3,810,766
Restricted 1,741,496 1,761,513 1,758,670 1,593,421 1,514,922
Unrestricted 1,369,382 1,102,489 991,148 952,026 915,276
Total Primary Government Net Position $ 7,377,281 $ 6,997,057 $ 6,808,457 $ 6,513,763 $ 6,240,964
Fiscal Year
2015 2014 2013 2012 2011
Governmental Activities:
Net Investment in Capital Assets $ 3,713,057 $ 3,673,267 $ 3,548,433 $ 3,480,152 $ 3,300,829
Restricted 1,537,781 1,383,140 1,241,520 1,114,366 1,144,456
Unrestricted 264,916 246,555 202,835 158,316 95,317
Total Governmental Activities Net Position $ 5,515,754 $ 5,302,962 $ 4,992,788 $ 4,752,834 $ 4,540,602
Business-type Activities:
Net Investment in Capital Assets $ 2,810 $ 3,650 $ 4,379 $ 3,893 $ 4,360
Restricted 6,155 912 916 891 1,931
Unrestricted 624,416 588,495 545,751 520,208 498,567
Total Business-type Activities Net Position $ 633,381 $ 593,057 $ 551,046 $ 524,992 $ 504,858
Primary Government:
Net Investment in Capital Assets $ 3,715,867 $ 3,676,917 $ 3,552,812 $ 3,484,045 $ 3,305,189
Restricted 1,543,936 1,384,052 1,242,436 1,115,257 1,146,387
Unrestricted 889,332 835,050 748,586 678,524 593,884
Total Primary Government Net Position $ 6,149,135 $ 5,896,019 $ 5,543,834 $ 5,277,826 $ 5,045,460
Source: South Dakota Comprehensive Annual Financial Reports (FY 2011-2020). Previous years' amounts are not restated.
176
State of South Dakota
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting, Dollars Expressed in Thousands)
Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Expenses
Governmental Activities:
General Government $ 209,723 $ 215,879 $ 217,355 $ 198,531 $ 198,079 $ 185,273 $ 180,221 $ 169,843 $ 164,005 $ 157,405
Education - Elementary, Secondary,
and Vocational Schools 223,524 228,729 213,449 223,668 210,777 210,271 206,939 201,177 211,413 218,959
Education - State Support to
Higher Education 229,545 213,843 210,972 206,253 232,245 192,950 219,341 176,294 171,701 185,757
Health, Human, and Social Services 1,544,824 1,552,490 1,500,037 1,503,967 1,423,411 1,406,586 1,380,648 1,367,355 1,354,764 1,354,829
Law, Justice, Public Protection,
and Regulation 313,534 301,008 258,727 294,852 269,583 279,097 321,186 277,223 286,127 286,824
Agriculture and Natural Resources 157,010 155,789 144,690 161,412 153,087 140,921 152,666 144,245 130,279 151,116
Economic Resources 45,920 71,819 43,560 52,771 56,138 74,004 40,121 43,300 40,865 51,157
Transportation 676,547 533,336 455,118 459,424 561,536 507,300 473,323 537,497 482,400 508,548
Pandemic Response 116,299
Intergovernmental - Payments to
School Districts 563,878 559,484 547,119 516,880 421,666 404,909 393,606 394,857 375,008 412,310
Intergovernmental - Revenue
Sharing 196,425 194,537 187,573 176,836 173,721 169,514 161,564 141,514 122,320 100,493
Unallocated Interest Expense 6,861 7,524 7,899 6,419 6,627 6,712 9,198 14,537 17,393 18,711
Unallocated Depreciation 53 53 53 53 53 53 53 53 53 58
Total Governmental Activities Expenses 4,284,143 4,034,491 3,786,552 3,801,066 3,706,923 3,577,590 3,538,866 3,467,895 3,356,328 3,446,167
Business-type Activities:
Lottery 50,484 51,016 45,256 39,907 43,454 41,053 42,806 44,114 39,877 36,775
Clean Water State Revolving 13,516 11,662 12,345 9,638 8,290 9,673 9,879 10,898 16,406 11,109
Drinking Water State Revolving 9,349 8,222 10,314 7,511 9,031 8,651 9,352 10,337 10,936 11,964
Unemployment Insurance 241,343
Other 30,696 55,331 55,571 60,920 60,352 56,081 66,042 81,648 92,096 100,406
Total Business-type Activities Expenses 345,388 126,231 123,486 117,976 121,127 115,458 128,079 146,997 159,315 160,254
Total Primary Government Expenses $ 4,629,531 $ 4,160,722 $ 3,910,038 $ 3,919,042 $ 3,828,050 $ 3,693,048 $ 3,666,945 $ 3,614,892 $ 3,515,643 $ 3,606,421
Program Revenues
Governmental Activities:
Charges for Services:
General Government $ 272,984 $ 260,567 $ 258,406 $ 242,343 $ 236,003 $ 244,728 $ 227,851 $ 212,529 $ 194,439 $ 170,598
Education - Elementary, Secondary,
and Vocational Schools 8,750 10,442 10,112 11,136 10,016 8,489 7,687 7,888 6,147 5,843
Health, Human, and Social Services 34,115 39,525 31,807 39,584 41,741 39,058 36,597 38,098 33,030 36,256
Law, Justice, Public Protection,
and Regulation 89,945 87,061 85,139 85,221 82,456 85,252 76,048 80,750 66,235 60,555
Agriculture and Natural Resources 84,795 82,993 86,130 85,226 82,891 76,994 77,514 72,972 69,331 67,815
Economic Resources 178 231 845 433 452 1,611 3,789 3,064 3,268 1,332
Transportation 16,519 15,279 14,723 15,927 14,755 9,007 6,979 6,682 7,514 7,776
Operating Grants and Contributions 1,918,543 1,589,862 1,520,834 1,553,460 1,475,671 1,493,542 1,582,641 1,588,413 1,670,046 1,838,312
Capital Grants and Contributions 16,761 3,378 2,342 3,886 7,045 21,946 1,516 1,046 1,608 3,945
Total Governmental Activities Program Revenues 2,442,590 2,089,338 2,010,338 2,037,216 1,951,030 1,980,627 2,020,622 2,011,442 2,051,618 2,192,432
Business-type Activities:
Charges for Services:
Lottery 177,306 179,644 170,099 156,814 160,728 152,362 148,323 151,414 143,078 144,460
Clean Water State Revolving 7,401 7,250 7,213 6,963 6,899 6,856 6,019 5,277 5,677 6,014
Drinking Water State Revolving 5,033 4,587 4,740 4,519 4,333 4,197 4,327 4,321 4,922 4,807
Unemployment Insurance 201,950
Other 29,279 63,755 60,688 68,543 75,424 71,243 81,681 85,946 94,455 112,210
Operating Grants and Contributions 89,829 26,910 30,971 25,334 32,772 30,005 33,994 30,519 30,910 52,926
Capital Grants and Contributions 19 200 84 426 727 2,810
Total Business-type Activities Program Revenues 510,817 282,346 273,795 262,599 280,883 267,473 274,344 277,477 279,042 320,417
Total Primary Government Program Revenues $ 2,953,407 $ 2,371,684 $ 2,284,133 $ 2,299,815 $ 2,231,913 $ 2,248,100 $ 2,294,966 $ 2,288,919 $ 2,330,660 $ 2,512,849
Net (Expense)/Revenue
Governmental Activities $ (1,841,553) $ (1,945,153) $ (1,776,214) $ (1,763,850) $ (1,755,893) $ (1,596,963) $ (1,518,244) $ (1,456,453) $ (1,304,710) $ (1,253,735)
Business-type Activities 165,429 156,115 150,309 144,623 159,756 152,015 146,265 130,480 119,727 160,163
Total Primary Government
Net (Expense)/Revenue $ (1,676,124) $ (1,789,038) $ (1,625,905) $ (1,619,227) $ (1,596,137) $ (1,444,948) $ (1,371,979) $ (1,325,973) $ (1,184,983) $ (1,093,572)
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Sales Taxes $ 1,149,732 $ 1,089,336 $ 1,025,111 $ 991,155 $ 905,475 $ 871,402 $ 858,001 $ 802,700 $ 779,002 $ 741,455
Motor Fuel Taxes 184,949 184,027 183,441 183,795 184,105 151,901 136,395 139,048 130,864 130,542
Contractors Excise Taxes 132,043 118,873 112,518 106,834 104,979 101,678 93,746 94,967 90,636 66,518
Bank Card and Franchise Taxes 44,727 35,411 31,448 32,844 25,943 20,669 23,943 49,493 32,941 16,954
Other Taxes 385,180 376,813 382,375 371,864 360,917 331,649 311,397 299,726 297,750 266,415
Investment Earnings 91,816 96,270 72,379 109,684 14,997 47,130 142,003 130,881 29,925 143,106
Gain on Sale of Capital Assets 1,515 1,978 1,737 1,463 2,057 1,198 2,726 2,127 3,915 819
Miscellaneous 61,664 79,632 110,159 80,500 89,493 81,275 133,988 76,047 51,652 41,519
Special Items (3,636) (4,702) 17,619
Transfers 121,805 125,977 125,570 120,283 120,602 113,558 102,937 104,426 100,257 107,750
Total Governmental Activities 2,169,795 2,103,615 2,044,738 1,998,422 1,808,568 1,720,460 1,822,755 1,699,415 1,516,942 1,515,078
Business-type Activities:
Transfers (121,805) (125,977) (125,570) (120,283) (120,602) (113,558) (102,937) (104,426) (100,257) (107,750)
Total Business-type Activities (121,805) (125,977) (125,570) (120,283) (120,602) (113,558) (102,937) (104,426) (100,257) (107,750)
Total Primary Government $ 2,047,990 $ 1,977,638 $ 1,919,168 $ 1,878,139 $ 1,687,966 $ 1,606,902 $ 1,719,818 $ 1,594,989 $ 1,416,685 $ 1,407,328
Change in Net Position
Governmental Activities $ 328,242 $ 158,462 $ 268,524 $ 234,572 $ 52,675 $ 123,497 $ 304,511 $ 242,962 $ 212,232 $ 261,343
Business-type Activities 43,624 30,138 24,739 24,340 39,154 38,457 43,328 26,054 19,470 52,413
Total Primary Government $ 371,866 $ 188,600 $ 293,263 $ 258,912 $ 91,829 $ 161,954 $ 347,839 $ 269,016 $ 231,702 $ 313,756
Source: South Dakota Comprehensive Annual Financial Reports (FY 2011-2020). Previous years' amounts are not restated.
177
State of South Dakota
Fund Balance, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting, Dollars Expressed in Thousands)
Fiscal Year
2020 2019 2018 2017 2016
General Fund:
Non-Spendable $ 5,300 $ 5,503 $ 6,097 $ 6,458 $ 4,193
Restricted 3,382 3,300 3,300 3,300 8,384
Committed
Assigned 136,363 74,156 60,691 54,835 54,516
Unassigned 381,326 294,225 268,052 249,087 242,449
Total General Fund $ 526,371 $ 377,184 $ 338,140 $ 313,680 $ 309,542
Other Governmental Funds:
Non-Spendable $ 582,096 $ 571,644 $ 563,385 $ 526,968 $ 512,525
Restricted 1,098,864 1,087,753 1,080,962 1,033,158 893,833
Committed 51,243 41,816 36,863 38,940 43,652
Assigned 25,593 22,430 17,514 29,404 27,022
Unassigned (8,359) (4,036) (11,758) (5,742) (5,048)
Total Other Governmental Funds $ 1,749,437 $ 1,719,607 $ 1,686,966 $ 1,622,728 $ 1,471,984
Fiscal Year
2015 2014 2013 2012 2011
General Fund:
Non-Spendable $ 3,911 $ 3,629 $ 3,419 $ 2,916 $ 3,148
Restricted 10,479 8,264 1,018
Committed
Assigned 120,180 149,021 126,872 140,706 148,137
Unassigned 183,570 159,403 186,444 147,445 136,018
Total General Fund $ 318,140 $ 320,317 $ 317,753 $ 291,067 $ 287,303
Other Governmental Funds:
Non-Spendable $ 501,093 $ 493,227 $ 717,108 $ 706,054 $ 683,786
Restricted 949,713 918,910 551,014 460,450 493,638
Committed 51,119 46,766 43,993 38,930 36,844
Assigned 27,633 34,339 49,758 43,815 34,684
Unassigned (3,624) (5,040) (1,462) (2,931) (18,859)
Total Other Governmental Funds $ 1,525,934 $ 1,488,202 $ 1,360,411 $ 1,246,318 $ 1,230,093
Source: South Dakota Comprehensive Annual Financial Reports (FY 2011-2020). Previous years' amounts are not restated.
178
State of South Dakota
Changes in Fund Balances, All Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting, Dollars Expressed in Thousands)
Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Revenues:
Taxes:
Sales and Use $ 1,129,007 $ 1,062,456 $ 1,025,607 $ 990,332 $ 905,203 $ 876,138 $ 857,559 $ 802,700 $ 779,002 $ 741,455
Insurance Company 94,277 88,270 91,062 83,952 83,291 80,133 73,876 70,740 66,679 61,799
Liquor 19,231 19,919 17,135 15,994 17,580 16,356 15,988 15,835 14,519 14,953
Cigarette 45,885 45,501 49,729 52,149 52,081 52,776 51,616 51,940 50,704 46,700
Bank Franchise 44,693 34,706 31,462 32,800 25,412 20,669 23,943 49,493 32,941 16,954
Contractor's Excise 126,946 112,705 112,473 106,845 104,938 102,246 93,746 94,967 90,636 66,518
Severance 8,640 4,777 9,055 10,154 8,260 7,508 9,286 9,141 15,153 9,748
Other Tobacco 10,357 9,470 9,231 8,226 8,882 7,995 8,131 6,562 6,495 6,075
Motor Fuel and Vehicle 305,620 302,498 298,774 294,918 293,045 240,382 215,203 212,521 206,259 192,198
Other 86,123 90,396 90,854 90,251 81,993 78,434 73,688 72,018 68,807 65,482
Licenses, Permits, and Fees 312,714 307,301 304,754 301,216 302,156 281,742 267,628 252,420 225,803 202,449
Fines, Forfeits, and Penalties 18,697 15,070 13,347 14,400 12,647 14,516 10,781 16,189 13,490 12,142
Use of Money and Property 116,694 128,161 84,549 123,183 27,578 59,865 157,633 153,479 42,881 162,577
Sales and Services 41,564 53,192 44,973 44,916 39,797 42,531 39,712 37,679 34,290 32,499
Administering Programs 1,889,237 1,555,548 1,493,062 1,546,964 1,464,030 1,503,362 1,567,027 1,573,326 1,657,602 1,820,205
Tobacco Settlement 20,865 20,558 46,000 24,302 24,582 23,421 26,561 24,128 24,135 23,673
Other Revenue 78,640 95,092 106,339 80,380 87,874 77,614 129,147 65,272 42,676 40,008
Total Revenues 4,349,190 3,945,620 3,828,406 3,820,982 3,539,349 3,485,688 3,621,525 3,508,410 3,372,072 3,515,435
Expenditures:
General Government 104,375 104,963 102,803 94,658 99,874 87,785 87,409 74,394 73,714 70,493
Education 1,015,113 999,426 977,720 977,833 859,072 804,348 835,894 782,276 778,707 832,936
Health, Human, and Social Services 1,523,558 1,531,129 1,516,592 1,487,068 1,428,259 1,435,850 1,387,821 1,364,933 1,351,100 1,350,402
Law, Justice, Public Protection, and Regulation 304,836 282,912 272,661 283,053 268,818 281,688 320,080 280,691 303,237 311,583
Agriculture and Natural Resources 164,876 155,168 161,734 173,111 155,006 143,466 148,596 139,861 138,598 155,064
Economic Resources 45,258 71,505 43,978 52,432 56,202 74,182 40,062 43,108 40,553 50,986
Transportation 788,580 614,680 575,332 600,346 655,752 554,536 582,939 604,048 625,661 576,777
Pandemic Response 116,299
State Shared Revenue 196,425 194,537 187,573 176,836 173,721 169,514 161,564 141,514 122,320 100,493
Capital Outlay 13,912 28,163 8,182 1,023 1,017 2,038 2,541 387 4,773 4,381
Debt Service:
Principal 14,280 14,407 14,962 15,583 16,415 17,272 20,973 30,059 25,622 22,225
Interest 6,510 7,234 7,563 8,647 9,177 9,261 10,206 13,896 16,219 17,504
Bond Issuance Costs 65 67 322 6 346 83 1,817
Payment to Refunded Bond Escrow Agent 16,924 8,016
Total Expenditures 4,294,087 4,004,124 3,869,167 3,870,912 3,723,319 3,580,286 3,615,092 3,485,000 3,480,504 3,492,844
Excess of Revenues Over (Under) Expenditures 55,103 (58,504) (40,761) (49,930) (183,970) (94,598) 6,433 23,410 (108,432) 22,591
Other Financing Sources (Uses):
Capital Leases 1,322 32,048 1,125 20,350 12,605 23,770 19,465
Proceeds from Sale of Capital Assets 2,895 5,663 2,627 2,253 2,136 2,099 4,459 5,154 6,096 1,588
Insurance Proceeds 15 33 13 80 85 24 222
Bonds Issued 44,305 13,410 4,500 9,505
Premiums on Bond Issuance 6,173 314 154
Proceeds of Refunding Bonds 7,130 1,405 10,408 169,645 801
Premiums on Refunding Bonds 206 1,657 9,026 24
Payments on Advance Refundings (6,469) (1,488) (11,379) (176,854) (741)
Transfers In 289,409 283,840 298,786 261,279 274,598 271,301 262,172 254,094 270,315 237,968
Transfers Out (169,066) (159,347) (174,720) (142,563) (155,397) (158,782) (167,866) (150,699) (171,982) (135,374)
Net Other Financing Sources (Uses) 123,914 130,189 128,028 203,698 121,422 130,153 123,639 122,971 128,421 133,390
Net Change in Fund Balances $ 179,017 $ 71,685 $ 87,267 $ 153,768 $ (62,548) $ 35,555 $ 130,072 $ 146,381 $ 19,989 $ 155,981
Debt Service as a Percentage of
Noncapital Expenditures 0.52% 0.57% 0.62% 0.69% 0.73% 0.79% 1.42% 1.63% 1.31% 1.21%
Source: South Dakota Comprehensive Annual Financial Reports (FY 2011-2020). Previous years' amounts are not restated.
179
State of South Dakota
Sales Tax Revenue Payers by Industry
Last Ten Fiscal Years
(Dollars Expressed in Thousands)
Fiscal Year 2020
Number of Filers Percent of Total Taxable Sales Percent of Total
Agriculture, Forestry, and Fishing 3,504 3.53% $ 414,827 1.74%
Mining 206 0.21% 74,930 0.31%
Construction 368 0.37% 30,204 0.13%
Manufacturing 5,180 5.22% 1,281,161 5.36%
Transportation and Public Utilities 2,750 2.77% 3,038,835 12.72%
Wholesale Trade 8,440 8.50% 1,773,771 7.43%
Retail Trade 42,777 43.09% 12,427,707 52.03%
Finance, Insurance, and Real Estate 1,994 2.01% 529,407 2.22%
Services 33,983 34.23% 4,311,839 18.05%
Public Administration 73 0.07% 3,169 0.01%
Total 99,275 100.00% $ 23,885,850 100.00%
Fiscal Year 2017
Number of Filers Percent of Total Taxable Sales Percent of Total
Agriculture, Forestry, and Fishing 3,237 3.64% $ 348,540 1.68%
Mining 213 0.24% 63,973 0.31%
Construction 515 0.58% 31,077 0.15%
Manufacturing 4,370 4.91% 958,294 4.61%
Transportation and Public Utilities 2,546 2.86% 2,833,338 13.63%
Wholesale Trade 7,168 8.06% 1,438,813 6.92%
Retail Trade 35,687 40.10% 10,789,651 51.89%
Finance, Insurance, and Real Estate 2,122 2.38% 451,550 2.17%
Services 33,076 37.16% 3,873,304 18.62%
Public Administration 59 0.07% 3,920 0.02%
Total 88,993 100.00% $ 20,792,460 100.00%
Fiscal Year 2014
Number of Filers Percent of Total Taxable Sales Percent of Total
Agriculture, Forestry, and Fishing 3,411 4.04% $ 287,680 1.44%
Mining 237 0.28% 118,587 0.59%
Construction 525 0.62% 31,241 0.16%
Manufacturing 3,820 4.53% 902,791 4.52%
Transportation and Public Utilities 2,728 3.23% 2,769,521 13.86%
Wholesale Trade 6,908 8.19% 1,514,416 7.58%
Retail Trade 31,494 37.34% 10,571,228 52.92%
Finance, Insurance, and Real Estate 2,172 2.58% 384,474 1.92%
Services 33,007 39.12% 3,396,424 17.00%
Public Administration 56 0.07% 2,029 0.01%
Total 84,358 100.00% $ 19,978,391 100.00%
Fiscal Year 2011
Number of Filers Percent of Total Taxable Sales Percent of Total
Agriculture, Forestry, and Fishing 3,165 3.99% $ 224,548 1.27%
Mining 223 0.28% 95,566 0.54%
Construction 447 0.56% 19,479 0.11%
Manufacturing 3,306 4.17% 944,070 5.33%
Transportation and Public Utilities 3,297 4.16% 2,920,135 16.49%
Wholesale Trade 6,741 8.50% 1,300,644 7.34%
Retail Trade 29,017 36.59% 8,930,620 50.43%
Finance, Insurance, and Real Estate 2,121 2.67% 291,692 1.65%
Services 30,934 39.01% 2,980,187 16.83%
Public Administration 55 0.07% 2,082 0.01%
Total 79,306 100.00% $ 17,709,023 100.00%
180
Fiscal Year 2019 Fiscal Year 2018
Number of Filers Percent of Total Taxable Sales Percent of Total Number of Filers Percent of Total Taxable Sales Percent of Total
3,378 3.49% $ 405,756 1.78% 3,313 3.53% $ 367,891 1.70%
219 0.23% 70,449 0.31% 216 0.23% 68,101 0.31%
384 0.40% 27,292 0.12% 534 0.57% 32,765 0.15%
4,820 4.98% 1,144,740 5.03% 4,522 4.82% 1,065,841 4.91%
2,642 2.73% 3,008,229 13.21% 2,684 2.86% 2,938,739 13.54%
7,919 8.18% 1,696,169 7.45% 7,417 7.90% 1,523,330 7.02%
41,642 43.00% 11,646,177 51.14% 39,386 41.96% 11,100,575 51.15%
2,254 2.33% 496,573 2.18% 2,298 2.45% 476,306 2.20%
33,498 34.59% 4,271,983 18.76% 33,417 35.61% 4,125,512 19.01%
67 0.07% 4,942 0.02% 65 0.07% 2,547 0.01%
96,823 100.00% $ 22,772,310 100.00% 93,852 100.00% $ 21,701,607 100.00%
Fiscal Year 2016 Fiscal Year 2015
Number of Filers Percent of Total Taxable Sales Percent of Total Number of Filers Percent of Total Taxable Sales Percent of Total
3,202 3.77% $ 338,993 1.60% 3,162 3.76% $ 297,936 1.45%
210 0.25% 71,002 0.34% 231 0.28% 105,773 0.51%
475 0.56% 26,495 0.13% 527 0.63% 27,123 0.13%
4,076 4.80% 917,873 4.34% 3,939 4.69% 873,909 4.24%
2,625 3.09% 2,767,864 13.09% 2,697 3.21% 2,765,194 13.43%
7,117 8.38% 1,618,465 7.65% 6,940 8.26% 1,617,613 7.85%
32,455 38.19% 11,137,027 52.66% 31,642 37.65% 10,864,164 52.74%
2,135 2.51% 432,211 2.04% 2,136 2.54% 394,780 1.92%
32,618 38.38% 3,835,074 18.14% 32,706 38.91% 3,650,026 17.72%
55 0.07% 2,799 0.01% 56 0.07% 2,390 0.01%
84,968 100.00% $ 21,147,803 100.00% 84,036 100.00% $ 20,598,908 100.00%
Fiscal Year 2013 Fiscal Year 2012
Number of Filers Percent of Total Taxable Sales Percent of Total Number of Filers Percent of Total Taxable Sales Percent of Total
3,424 4.13% $ 253,605 1.34% 3,274 4.05% $ 241,819 1.33%
233 0.28% 102,408 0.54% 218 0.27% 112,925 0.62%
463 0.56% 25,832 0.14% 469 0.58% 23,842 0.13%
3,608 4.35% 778,735 4.12% 3,399 4.20% 788,163 4.33%
2,941 3.55% 2,556,524 13.54% 3,034 3.75% 2,422,870 13.30%
7,226 8.72% 1,403,736 7.43% 7,186 8.88% 1,460,278 8.02%
30,452 36.74% 10,162,245 53.81% 29,963 37.02% 9,764,051 53.60%
2,133 2.57% 367,556 1.95% 2,116 2.61% 308,237 1.69%
32,354 39.03% 3,231,543 17.11% 31,216 38.57% 3,090,080 16.97%
60 0.07% 4,082 0.02% 56 0.07% 1,799 0.01%
82,894 100.00% $ 18,886,266 100.00% 80,931 100.00% $ 18,214,064 100.00%
Source: South Dakota Sales and Use Tax Report, Department of Revenue
Notes:
(a) Due to confidentiality issues, the names of the ten largest sales tax revenue payers are not available. The categories presented are intended to provide alternative
information regarding the sources of the State's sales tax resources, representing the largest source of funding for the General Fund.
(b) Taxable sales: This is the amount of sales and use taxable sales of tangible personal property, services, and products delivered electronically which are subject
to state tax or reservation tax unless specifically exempted. No Contractors Excise taxes are included.
(c) Whenever there are fewer than 3 licenses in any one classification, the information is combined into the "Nonclassifiable Establishments" category.
(d) Prior to June 1, 2016, a tax was imposed upon gross receipts from selling, leasing, and renting tangible personal property and the sales of services.
Beginning June 1, 2016, all items subject to the state sales tax will be taxed at 4.5% to conform to the HB 1182 passed during the 2016 Session.
A use tax of the same rate as the sales tax rate was imposed on goods and services that are used, stored, or consumed in South Dakota on which South Dakota
sales tax was not paid. An excise tax of the same rate as the sales tax rate was imposed on farm machinery and amusement device tax.
(e) The taxable figures could include amended returns that were due in prior periods.
181
State of South Dakota
Taxable Sales by Industry
Last Ten Fiscal Years
(Dollars Expressed in Thousands)
Fiscal Year
2020 2019 2018 2017 2016
Taxable Sales by Industry
Agriculture, Forestry, and Fishing $ 414,827 $ 405,756 $ 367,891 $ 348,540 $ 338,993
Mining 74,930 70,449 68,101 63,973 71,002
Construction 30,204 27,292 32,765 31,077 26,495
Manufacturing 1,281,161 1,144,740 1,065,841 958,294 917,873
Transportation and Public Utilities 3,038,835 3,008,229 2,938,739 2,833,338 2,767,864
Wholesale Trade 1,773,771 1,696,169 1,523,330 1,438,813 1,618,465
Retail Trade 12,427,707 11,646,177 11,100,575 10,789,651 11,137,027
Finance, Insurance, and Real Estate 529,407 496,573 476,306 451,550 432,211
Services 4,311,839 4,271,983 4,125,512 3,873,304 3,835,074
Public Administration 3,169 4,942 2,547 3,920 2,799
Totals $ 23,885,850 $ 22,772,310 $ 21,701,607 $ 20,792,460 $ 21,147,803
Direct Sales Tax Rate 4.50% 4.50% 4.50% 4.50% 4.50%
Fiscal Year
2015 2014 2013 2012 2011
Taxable Sales by Industry
Agriculture, Forestry, and Fishing $ 297,936 $ 287,680 $ 253,605 $ 241,819 $ 224,548
Mining 105,773 118,587 102,408 112,925 95,566
Construction 27,123 31,241 25,832 23,842 19,479
Manufacturing 873,909 902,791 778,735 788,163 944,070
Transportation and Public Utilities 2,765,194 2,769,521 2,556,524 2,422,870 2,920,135
Wholesale Trade 1,617,613 1,514,416 1,403,736 1,460,278 1,300,644
Retail Trade 10,864,164 10,571,228 10,162,245 9,764,051 8,930,620
Finance, Insurance, and Real Estate 394,780 384,474 367,556 308,237 291,692
Services 3,650,026 3,396,424 3,231,543 3,090,080 2,980,187
Public Administration 2,390 2,029 4,082 1,799 2,082
Totals $ 20,598,908 $ 19,978,391 $ 18,886,266 $ 18,214,064 $ 17,709,023
Direct Sales Tax Rate 4.00% 4.00% 4.00% 4.00% 4.00%
Source: South Dakota Sales and Use Tax Report, Department of Revenue
Notes:
(a) Due to confidentiality issues, the names of the ten largest sales tax revenue payers are not available. The categories presented are intended to provide
alternative information regarding the sources of the State's sales tax resources, representing the largest source of funding for the General Fund.
(b) Taxable sales: This is the amount of sales and use taxable sales on tangible personal property, services, and products delivered electronically which
are subject to state tax or reservation tax unless specifically exempted. No Contractors Excise taxes are included.
(c) Whenever there are fewer than 3 licenses in any one classification, the information is combined into the "Nonclassifiable Establishments" category.
(d) Prior to June 1, 2016, a tax was imposed upon gross receipts from selling, leasing, and renting tangible personal property and the sales of services.
Beginning June 1, 2016, all items subject to the state sales tax will be taxed at 4.5% to conform to the HB 1182 passed during the 2016 Session.
A use tax of the same rate as the sales tax rate was imposed on goods and services that are used, stored, or consumed in South Dakota on which
South Dakota sales tax was not paid. An excise tax of the same rate as the sales tax rate was imposed on farm machinery and amusement device tax.
(e) The taxable figures could include amended returns that were due in prior periods.
182
State of South Dakota
Ratios of Outstanding Long-Term Debt
Last Ten Fiscal Years
(Dollars Expressed in Thousands) Fiscal Year
2020 2019 2018 2017 2016
Governmental Activities:
Revenue Bonds $ 146,764 $ 160,839 $ 176,322 $ 192,360 $ 157,847
Trust Certificates 280
Capital Leases 133,352 136,417 139,181 145,681 116,289
Total Governmental Activities 280,116 297,256 315,503 338,041 274,416
Business-type Activities:
Revenue Bonds 351,302 375,803 287,206 230,912 247,852
Total Business-type Activities 351,302 375,803 287,206 230,912 247,852
Total Primary Government $ 631,418 $ 673,059 $ 602,709 $ 568,953 $ 522,268
South Dakota Total Personal Income (r) $ 52,313,000 $ 47,738,000 $ 46,249,000 $ 43,275,000 $ 41,960,000
Debt as a Percentage of Personal Income 1.2% 1.4% 1.3% 1.3% 1.2%
South Dakota Population (in thousands)(r) 891 885 879 873 863
Long-Term Debt per Capita $ 708.66 $ 760.52 $ 685.68 $ 651.72 $ 605.18
Fiscal Year
2015 2014 2013 2012 2011
Governmental Activities:
Revenue Bonds $ 174,764 $ 177,303 $ 191,295 $ 227,586 $ 250,376
Trust Certificates 570 880 13,595 16,490 19,250
Capital Leases 116,352 100,727 78,682 64,279 40,187
Total Governmental Activities 291,686 278,910 283,572 308,355 309,813
Business-type Activities:
Revenue Bonds 263,818 207,448 212,523 222,705 174,218
Total Business-type Activities 263,818 207,448 212,523 222,705 174,218
Total Primary Government $ 555,504 $ 486,358 $ 496,095 $ 531,060 $ 484,031
South Dakota Total Personal Income (r) $ 41,548,000 $ 39,872,000 $ 38,109,000 $ 37,659,000 $ 36,742,000
Debt as a Percentage of Personal Income 1.3% 1.2% 1.3% 1.4% 1.3%
South Dakota Population (in thousands)(r) 854 849 842 833 823
Long-Term Debt per Capita $ 650.47 $ 572.86 $ 589.19 $ 637.53 $ 588.13
Source: Debt information obtained from the South Dakota Comprehensive Annual Financial Reports (FY 2011-2020)
Total Personal Income and Population data: US Bureau of Economic Analysis
Note: (a) South Dakota Total Personal Income figure for 2020 is preliminary.
(b) Detail about the State's debt can be found in Note 14 of the financial statements.
(c) Generally, the State Constitution prohibits the State from having general obligation indebtedness in excess of $100,000.
(d) The State has no specific limitation of the debt that can be issued by the Building Authority, Educational Enhancement
Funding Corporation, Clean Water State Revolving Fund, and the Drinking Water State Revolving Fund; however, Legislative
approval is required.
(r) Data for Total Personal Income has been revised for fiscal years 2011 through 2019.
Data for South Dakota Population has been revised for fiscal years 2011 through 2019.
183
State of South Dakota
Pledged-Revenue Coverage
Last Ten Fiscal Years
(Dollars Expressed in Thousands)
Fiscal Year
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Revenue Bonds and Trust Certificates
- Building Authority
Revenue - Lease Payments $ 6,966 $ 6,968 $ 7,019 $ 8,071 $ 8,607 $ 8,898 $ 12,654 $ 13,569 $ 14,646 $ 15,052
Less: Operating Expenses
Net Available Revenue $ 6,966 $ 6,968 $ 7,019 $ 8,071 $ 8,607 $ 8,898 $ 12,654 $ 13,569 $ 14,646 $ 15,052
Debt Service
Principal $ 3,680 $ 3,507 $ 3,462 $ 3,648 $ 2,321 $ 4,047 $ 6,978 $ 10,713 $ 11,243 $ 11,240
Interest 3,112 3,451 3,532 4,388 6,283 4,377 5,478 2,559 3,355 3,731
Total $ 6,792 $ 6,958 $ 6,994 $ 8,036 $ 8,604 $ 8,424 $ 12,456 $ 13,272 $ 14,598 $ 14,971
Coverage 1.03 1.00 1.00 1.00 1.00 1.06 1.02 1.02 1.00 1.01
Revenue Bonds
-Educational Enhancement Funding Corp.
Revenue:
Tobacco Settlement $ 20,832 $ 20,024 $ 46,015 $ 22,815 $ 25,156 $ 23,306 $ 26,326 $ 23,914 $ 24,359 $ 22,908
Investment Earnings 341 462 257 102 68 13 7 1,079 1,202 1,098
Less: Operating Expenses 165 152 152
Net Available Revenue $ 21,173 $ 20,486 $ 46,272 $ 22,917 $ 25,224 $ 23,319 $ 26,333 $ 24,828 $ 25,409 $ 23,854
Debt Service
Principal $ 10,600 $ 10,900 $ 11,500 $ 11,935 $ 12,535 $ 13,225 $ 13,995 $ 18,800 $ $
Interest 3,145 3,530 3,789 4,018 4,215 4,376 4,498 10,828 12,975 13,799
Total $ 13,745 $ 14,430 $ 15,289 $ 15,953 $ 16,750 $ 17,601 $ 18,493 $ 29,628 $ 12,975 $ 13,799
Coverage 1.54 1.42 3.03 1.44 1.51 1.32 1.42 0.84 1.96 1.73
Revenue Bonds
-Clean Water State Revolving Fund
Revenue:
Loan Repayments $ 36,697 $ 30,004 $ 27,944 $ 28,764 $ 28,998 $ 26,637 $ 25,502 $ 24,394 $ 29,078 $ 43,202
Investment Income 5,752 6,637 4,605 4,181 4,192 3,900 3,988 3,402 3,494 3,259
Other Income 1,701 1,597 1,528 1,428 1,410 1,442 1,332 1,238 1,243 1,320
Less: Operating Expenses 1,698 2,288 3,737 2,348 982 1,294 1,080 2,476 1,304 982
Net Available Revenue $ 42,452 $ 35,950 $ 30,340 $ 32,025 $ 33,618 $ 30,685 $ 29,742 $ 26,558 $ 32,511 $ 46,799
Debt Service
Principal $ 13,130 $ 12,505 $ 10,125 $ 9,875 $ 9,290 $ 7,580 $ 7,415 $ 6,110 $ 4,320 $ 3,665
Interest 10,304 9,293 7,862 6,821 7,088 6,663 5,361 5,578 4,063 3,188
Total $ 23,434 $ 21,798 $ 17,987 $ 16,696 $ 16,378 $ 14,243 $ 12,776 $ 11,688 $ 8,383 $ 6,853
Coverage 1.81 1.65 1.69 1.92 2.05 2.15 2.33 2.27 3.88 6.83
Revenue Bonds
-Drinking Water State Revolving Fund
Revenue:
Loan Repayments $ 15,449 $ 20,165 $ 21,007 $ 17,634 $ 23,042 $ 25,234 $ 19,597 $ 19,956 $ 34,599 $ 31,338
Investment Income 3,727 4,230 3,233 2,930 3,104 2,639 3,148 2,558 2,351 1,987
Other Income 1,050 921 955 916 899 885 909 929 1,064 1,034
Less: Operating Expenses 1,476 1,282 1,076 695 105 123 142 146 137 164
Net Available Revenue $ 18,750 $ 24,034 $ 24,119 $ 20,785 $ 26,940 $ 28,635 $ 23,512 $ 23,297 $ 37,877 $ 34,195
Debt Service
Principal $ 8,575 $ 8,085 $ 6,075 $ 5,925 $ 5,535 $ 4,475 $ 4,380 $ 4,050 $ 2,845 $ 2,495
Interest 4,073 3,315 2,409 2,116 2,255 2,276 2,155 2,284 2,676 2,517
Total $ 12,648 $ 11,400 $ 8,484 $ 8,041 $ 7,790 $ 6,751 $ 6,535 $ 6,334 $ 5,521 $ 5,012
Coverage 1.48 2.11 2.84 2.58 3.46 4.24 3.60 3.68 6.86 6.82
Source: Clean Water State Revolving Fund Financial Statements, Drinking Water State Revolving Fund
Financial Statements, Education Enhancement Funding Corporation Annual Report, and Building
Authority Lease Rental Schedules and Debt Service Schedules.
Note: (a) The Building Authority, Educational Enhancement Funding Corporation, Clean Water State Revolving
Fund, and Drinking Water State Revolving Fund are considered to be blended component units of the State.
The Revenue Bonds and Trust Certificates issued by these entities may not be or become: a lien, charge,
or liability against the State.
(b) For the Educational Enhancement Funding Corporation, all turbo redemptions
are excluded from this calculation.
(c) All funds are presented on an accrual basis except for the Building Authority Fund which is presented
on a cash basis.
184
POPULATION
(Expressed in Thousands)
UNITED PERCENT PERCENT SOUTH PERCENT
YEAR PLAINS*
STATES CHANGE CHANGE DAKOTA CHANGE
2019r 328,240 0.5 % 21,427 0.4 % 885 0.7 %
2018r 326,688 0.5 % 21,350 0.4 % 879 0.7 %
2017r 324,986 0.6 % 21,267 0.4 % 873 1.2 %
2016r 322,941 0.7 % 21,175 0.4 % 863 1.1 %
2015r 320,635 0.7 % 21,083 0.5 % 854 0.6 %
2014r 318,301 0.7 % 20,983 0.5 % 849 0.8 %
2013r 315,994 0.7 % 20,870 0.6 % 842 1.1 %
2012r 313,831 0.7 % 20,751 0.5 % 833 1.1 %
2011r 311,557 0.7 % 20,641 0.5 % 824 1.0 %
2010r 309,322 0.8 % 20,536 0.7 % 816 1.1 %
Note: Midyear population estimates updated September 2020. Revised estimates for 2010 through
2019. With each new release of population estimates, the Census Bureau Revises estimates
for years back to the last census.
r = Revised Estimates
* The Plains states include Iowa, Kansas, Minnesota, Missouri, Nebraska, N. Dakota and S. Dakota
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Last Updated September 2020
TOTAL PERSONAL INCOME
(Dollars Expressed in Millions)
UNITED PERCENT PERCENT SOUTH PERCENT
YEAR PLAINS*
STATES CHANGE CHANGE DAKOTA CHANGE
2019r $ 18,542,262 3.9 % $ 1,146,515 3.5 % $ 47,738 3.2 %
2018r 17,839,255 5.3 % 1,107,630 5.0 % 46,249 6.4 %
2017r 16,937,582 4.9 % 1,055,029 3.2 % 43,457 3.3 %
2016r 16,151,881 2.8 % 1,022,336 1.3 % 42,049 1.1 %
2015r 15,717,140 4.9 % 1,009,286 3.4 % 41,571 4.3 %
2014r 14,982,715 5.7 % 975,637 4.4 % 39,872 4.6 %
2013r 14,175,503 1.3 % 934,446 1.1 % 38,109 1.2 %
2012r 13,998,383 5.1 % 924,061 5.7 % 37,659 2.5 %
2011r 13,315,478 6.2 % 874,230 7.4 % 36,742 9.4 %
2010r 12,541,995 4.1 % 814,191 3.7 % 33,596 5.7 %
Note: Revised estimates reflect the revision of the National Income and Product Accounts (NIPA's), and newly
available state and local data. Revised estimates for 2010 through 2019.
r = Revised Estimates
* The Plains states include Iowa, Kansas, Minnesota, Missouri, Nebraska, N. Dakota and S. Dakota
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Last Updated September 2020
185
UNEMPLOYMENT RATE
SOUTH UNITED
YEAR
DAKOTA STATES
2019 3.3% 3.7%
2018 3.1% 3.9%
2017 3.2% 4.4%
2016 3.0% 4.9%
2015 3.1% 5.3%
2014 3.4% 6.2%
2013 3.8% 7.4%
2012 4.3% 8.1%
2011 4.7% 8.9%
2010 5.0% 9.6%
Source: SD Department of Labor and Regulation, Labor Market Information
PER CAPITA PERSONAL INCOME
UNITED PERCENT PERCENT SOUTH PERCENT
YEAR PLAINS*
STATES CHANGE CHANGE DAKOTA CHANGE
2019r $ 56,490 3.5 % $ 53,509 3.1 % $ 53,962 2.5 %
2018r 54,606 4.8 % 51,879 4.6 % 52,633 5.7 %
2017r 52,118 4.2 % 49,609 2.8 % 49,787 2.2 %
2016r 50,015 2.0 % 48,280 0.9 % 48,724 0.1 %
2015r 49,019 4.1 % 47,872 3.0 % 48,678 3.7 %
2014r 47,071 4.9 % 46,497 3.8 % 46,957 3.8 %
2013r 44,860 0.6 % 44,775 0.5 % 45,243 0.1 %
2012r 44,605 4.4 % 44,532 5.1 % 45,179 1.3 %
2011r 42,739 5.4 % 42,353 6.8 % 44,612 8.4 %
2010r 40,547 3.2 % 39,647 3.0 % 41,163 4.5 %
Note: Per capita personal income is total personal income divided by total midyear population
estimate. Midyear population estimates. Source: U.S. Census Bureau.
r = Revised Estimates
* The Plains states include Iowa, Kansas, Minnesota, Missouri, Nebraska, N. Dakota and S. Dakota
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Last Updated September 2020.
186
NONFARM WAGE AND SALARY EMPLOYMENT BY INDUSTRY¹
(Expressed in Thousands)
2020p 2019r 2018r 2017r 2016r 2015r 2014r 2013r 2012r 2011r
Natural
26.7 24.6 24.0 23.4 23.7 23.1 22.2 21.4 21.1 21.1
Resources/Mining/Construction
Manufacturing 42.8 44.8 44.4 43.1 42.2 42.6 42.3 41.5 41.2 39.2
Trade/Transportation/Utilities 82.9 86.0 86.5 87.0 88.0 87.3 85.6 83.5 82.8 81.6
Wholesale Trade 20.9 21.2 20.8 20.8 21.0 21.0 20.6 19.8 19.3 18.8
Retail Trade 49.1 51.2 52.3 53.0 53.7 52.9 51.9 51.1 51.0 50.2
Trans/Warehousing/Utility 12.9 13.7 13.5 13.3 13.3 13.4 13.1 12.6 12.5 12.6
Information 5.3 5.5 5.6 5.7 5.8 5.9 6.0 6.0 6.2 6.4
Financial Activities 29.1 29.0 29.2 29.3 29.3 29.7 29.7 29.7 28.6 28.1
Professional/Business Srvs. 33.3 33.2 32.3 31.5 31.4 30.8 30.5 29.7 29.3 28.9
Educational/Health Services 71.4 73.5 72.5 71.5 70.3 69.1 68.3 68.0 67.1 65.3
Leisure and Hospitality 41.2 47.3 47.3 47.0 46.7 46.2 45.4 44.7 44.3 43.4
Other Services (Except Public
15.6 16.9 16.7 16.7 16.6 16.3 16.1 16.2 16.0 15.7
Administration)
Government 76.1 79.9 79.5 79.1 78.4 77.8 77.8 77.3 77.5 78.0
TOTAL 507.3 526.8 524.6 521.4 520.4 516.1 509.5 501.5 496.9 489.3
% Change in Nonfarm Employment -3.7% 0.4% 0.6% 0.2% 0.8% 1.3% 1.6% 0.9% 1.6% 21.2%
Note: Numbers may not add due to rounding. Data not seasonally adjusted.
1
Based on North American Industry Classification System (NAICS)
p = Preliminary Data
r = Revised Data
Source: Labor Market Information Center (LMIC) in cooperation with the U.S. Bureau of Labor Statistics
EXPANDED AND NEW INDUSTRIES
(Dollars Expressed in Millions)
EXPANSIONS NEW TOTAL
NEW CAPITAL NEW CAPITAL NEW CAPITAL
NUMBER NUMBER NUMBER
INVESTMENT INVESTMENT INVESTMENT
2019 372 $ 324.2 0 $ 0.0 372 $ 324.2
2018 304 423.3 6 26.1 310 449.4
2017 207 387.8 4 9.3 211 397.1
2016 163 256.6 2 0.6 165 257.2
2015 330 406.5 2 3.4 332 409.9
2014 352 459.4 8 16.3 360 475.7
2013 283 278.6 8 204.7 291 483.3
2012 406 403.3 3 0.0 409 403.3
2011 367 276.5 4 0.9 371 277.4
2010 323 111.2 12 0.3 335 111.5
Note: Only manufacturing and processing companies are included in the above totals.
Source: Governor's Office of Economic Development
187
State of South Dakota
Employment by Industry Type
2020 as Compared to 2011
June Percentage of
2020 South Dakota Industry
Rank Industry Employees Types
1 Government 74,300 17.4%
2 Health Care and Social Assistance 63,700 14.9%
3 Retail Trade 49,500 11.6%
4 Manufacturing 43,200 10.1%
5 Leisure and Hospitality 42,900 10.1%
6 Professional and Business Services 33,600 7.9%
7 Mining, Logging, and Construction 29,800 7.0%
8 Financial Activities 29,400 6.9%
9 Wholesale Trade 21,100 5.0%
10 Other Services 15,400 3.6%
11 Transportation, Warehousing, and Utilities 12,400 2.9%
12 Educational Services 6,000 1.4%
13 Information 5,300 1.2%
Total Nonfarm Employment 426,600 100.0%
Sources: June, 2020 Current Employment Statistics (CES) data for all nonfarm workers, not seasonally adjusted.
Labor Market Information Center, SD Dept. of Labor & Regulation in cooperation with U.S. Bureau of Labor
Statistics. Downloaded: 12/15/2020
Notes: Due to confidentiality issues, employment numbers of the ten largest employers is not available. The
categories presented are intended to provide alternative information regarding employment.
June Percentage of
2011 South Dakota Industry
Rank Industry Employees Types
1 Government 80,000 19.2%
2 Health Care and Social Assistance 58,400 14.0%
3 Retail Trade 50,700 12.1%
4 Leisure and Hospitality 46,500 11.1%
5 Manufacturing 39,500 9.5%
6 Professional and Business Services 29,300 7.0%
7 Financial Activities 28,300 6.8%
8 Mining, Logging, and Construction 23,300 5.6%
9 Wholesale Trade 19,100 4.6%
10 Other Services 16,000 3.8%
11 Transportation, Warehousing, and Utilities 12,700 3.0%
12 Educational Services 7,000 1.7%
13 Information 6,500 1.6%
Total Nonfarm Employment 417,300 100.0%
Sources: June, 2011 Current Employment Statistics (CES) data for all nonfarm workers, not seasonally adjusted.
Labor Market Information Center, SD Dept. of Labor & Regulation in cooperation with U.S. Bureau of Labor
Statistics. Downloaded: 12/15/2020
Notes: Due to confidentiality issues, employment numbers of the ten largest employers is not available. The
categories presented are intended to provide alternative information regarding employment.
188
State of South Dakota
Full-Time Equivalent State Employees by Function of Government
Last Ten Fiscal Years
(excluding Higher Education)
Fiscal Year
Function of State Government: 2020 2019 2018 2017 2016
General Government 1,024 1,020 1,028 1,020 1,018
Health, Human, and Social Services 2,905 2,913 2,958 2,991 2,936
Law, Justice, Public Protection, and Regulation 2,137 2,143 2,129 2,130 2,186
Agriculture and Natural Resources 927 944 944 948 939
Transportation 991 997 1,000 998 976
Education 178 178 177 180 176
Economic Resources 71 125 125 124 156
State Total 8,233 8,320 8,361 8,391 8,387
Fiscal Year
Function of State Government: 2015 2014 2013 2012 2011
General Government 998 983 970 967 1,003
Health, Human, and Social Services 3,007 2,999 3,009 3,004 3,040
Law, Justice, Public Protection, and Regulation 2,215 2,223 2,186 2,142 2,160
Agriculture and Natural Resources 943 929 941 925 938
Transportation 977 980 978 965 987
Education 178 128 130 132 133
Economic Resources 158 198 197 170 264
State Total 8,476 8,440 8,411 8,305 8,525
Source: State's Budget System RB16 - June 30, 2020 does not take into consideration reorganization
Note:
(a) A full-time equivalent employee, or FTE, represents one full-time position, or a number of part-time or
seasonal positions.
189
State of South Dakota
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
General Government 2020 2019 2018 2017
Vehicles 2,897 3,012 2,948 2,908
Land (Acres) 762,538 761,475 761,465 760,743
Equipment 1,359 1,406 1,382 1,386
Buildings 24 24 22 22
Infrastructure 0 0 0 0
Health, Human, and Social Services
Vehicles 7 7 7 7
Land (Acres) 642 644 584 710
Equipment 653 689 665 650
Buildings 81 81 84 89
Infrastructure 0 0 0 0
Law, Justice, Public Protection,
and Regulation
Vehicles 297 358 361 361
Land (Acres) 1,413 1,413 1,512 1,504
Equipment 1,246 1,263 1,196 1,180
Buildings 137 137 135 157
Infrastructure 0 0 0 0
Agriculture and Natural Resources
Vehicles 353 366 369 378
Land (Acres) 363,285 363,221 363,222 362,876
Equipment 1,667 1,715 1,668 1,647
Buildings 129 128 120 96
Infrastructure 0 0 0 0
Transportation
Vehicles 1,197 1,295 1,301 1,281
Land (Acres) 3,199 3,182 3,177 3,199
Land, ROW Roads $ 108,226,917 $ 107,257,048 $ 103,939,192 $ 97,004,207
Land Improvements, Roads $ 529,014,507 $ 529,014,507 $ 527,033,832 $ 527,033,832
Equipment 4,109 4,257 4,066 3,917
Buildings 209 207 203 199
Infrastructure
-Roads: Lane Miles 8,847 8,847 8,850 8,850
-Bridges: Number of 1,802 1,795 1,796 1,796
-Railroads: Track Miles 530 530 530 530
Education
Vehicles 0 0 0 0
Land (Acres) 187 187 284 284
Equipment 76 81 81 86
Buildings 32 32 32 34
Infrastructure 0 0 0 0
Economic Resources
Vehicles 0 0 0 0
Land (Acres) 6 6 6 0
Equipment 1 1 1 3
Buildings 0 0 0 0
Infrastructure 0 0 0 0
Source: Survey conducted by BFM of the department's finance personnel and the Fixed Asset System.
190
Fiscal Year
2016 2015 2014 2013 2012 2011
2,987 2,904 2,929 2,862 2,852 2,949
760,806 760,806 760,806 760,804 760,828 760,828
1,427 1,406 1,367 1,388 1,406 1,296
23 22 19 15 17 17
0 0 0 0 0 0
7 7 7 8 8 8
763 799 799 777 710 710
667 651 604 610 590 554
89 92 93 48 47 47
0 0 0 0 0 0
332 317 320 339 324 320
1,504 1,510 1,510 1,484 1,387 2,066
1,090 1,047 940 932 826 762
156 159 156 71 74 74
0 0 0 0 0 0
389 392 373 373 377 365
361,821 360,938 360,323 360,137 360,039 360,039
1,617 1,576 1,509 1,490 1,457 1,357
76 73 65 55 52 52
0 0 0 0 0 0
1,287 1,279 1,250 1,183 1,206 1,268
3,213 3,217 3,206 3,294 3,498 3,618
$ 95,308,778 $ 93,472,606 $ 92,796,015 $ 92,689,993 $ 89,954,671 $ 86,389,686
$ 523,392,571 $ 520,147,538 $ 514,620,856 $ 512,129,195 $ 512,129,195 $ 512,410,674
3,806 3,661 3,415 3,211 3,081 3,043
193 183 175 115 109 104
8,861 8,862 8,850 8,850 8,858 8,858
1,795 1,799 1,796 1,798 1,799 1,805
530 530 530 530 513 513
0 0 0 0 0 0
284 184 77 77 77 45
78 25 24 17 11 15
27 27 27 26 22 22
0 0 0 0 0 0
0 0 0 1 2 2
0 0 0 0 0 0
3 47 49 45 42 48
0 1 1 0 0 0
0 0 0 0 0 0
191
State of South Dakota
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
General Government 2020 2019 2018
Executive Management
Bureau of Finance and Management
Complete Governors Budget Book Annual Annual Annual
Finalize State Operating Budget Annual Annual Annual
Bureau of Information and Telecommunications
SDPB Local Production (Hours) 3,068 3,237 3,239
Radio Calls through Digital Network 27,376,199 25,879,566 27,038,877
Bureau of Human Resources
Health: Employees, COBRA, Retirees/Dependents 12,897 / 14,204 13,073 / 14,311 13,240 / 14,179
Bureau of Administration
Pieces of Mail Handled/Year 6,594,534 6,783,673 7,254,250
Total Miles Driven 32,786,517 37,538,989 37,677,337
Revenue
Total Active Business Licenses 91,793 89,842 85,147
Vehicles Registered 1,509,538 1,527,593 1,533,549
Misc. Special Tax Licenses 5,878 6,059 6,757
Lottery
Licensed Lottery Retailers--Instant Only 13 13 13
Licensed Lottery Retailers--On-line 614 616 636
Legislature
Auditor General
Audits Performed 57 56 53
Audits Reviewed (IPA reports) 352 345 316
School and Public Lands
Apportion Common School Interest Fund and
Income to School Districts (Thousands) $ 12,695 $ 12,112 $ 11,282
Apportion Endowed Income and Interest Fund to
Ten Endowed Institutions (Thousands) $ 3,412 $ 2,813 $ 2,642
Secretary of State
Business and Secured Transaction Filings 127,036 122,122 125,600
State Treasurer
Cash Receipts (Thousands) $ 6,971,719 $ 5,432,711 $ 5,205,064
Unclaimed Property - Claims Paid 6,467 4,624 5,822
State Auditor
Vouchers Audited 257,420 285,516 281,596
Warrants Written 236,466 239,860 250,707
Health, Human, and Social Services
Social Services
Medicaid Enrolled/Month 115,731 116,709 118,338
Long Term Care Services - Clients Served 3,487 3,694 3,723
Health
Public Health Investigations 11,716 28,087 21,187
Labor
State Labor Force 466,631 463,061 457,835
Unemployment Rate 4.80% 2.90% 3.30%
South Dakota Retirement System
Budget Compared to Assets 0.040% 0.040% 0.040%
Budget Compared to Benefits 0.860% 0.840% 0.860%
Veterans Benefits and Services
South Dakota Veteran Population 67,119 65,893 66,811
State Veterans' Home
Average Daily Census 98 96 94
Human Services
People with Developmental Disabilities Served 3,012 3,031 3,105
People with Mental Illness Served 18,047 18,189 17,866
People with Substance Abuse Issues Served 11,693 11,361 12,351
People Receiving Vocational Rehabilitation Services 4,753 5,174 5,581
192
Fiscal Year
2017 2016 2015 2014 2013 2012 2011
Annual Annual Annual Annual Annual Annual Annual
Annual Annual Annual Annual Annual Annual Annual
3,110 3,271 3,760 3,735 3,656 2,056 2,456
24,549,762 29,858,306 27,888,987 26,319,746 26,968,003 26,052,239 24,122,503
13,264 / 13,730 13,242 / 13,418 13,328 / 13,360 13,413 / 13,426 13,296 / 13,305 13,234 / 13,008 13,372 / 12,488
7,448,095 7,536,209 7,720,306 7,719,049 8,047,767 8,631,113 8,991,825
38,898,000 38,344,195 38,848,323 38,241,658 38,739,712 38,755,956 37,663,512
84,242 82,640 80,779 80,236 81,047 80,130 78,399
1,484,111 1,519,080 1,425,379 1,258,147 1,402,128 1,081,516 1,156,109
6,663 6,612 5,228 5,372 5,430 5,333 5,332
13 13 12 12 12 12 13
632 610 608 600 597 591 584
54 54 46 56 49 73 59
351 333 326 322 338 327 356
$ 10,196 $ 10,227 $ 9,969 $ 8,774 $ 7,422 $ 7,433 $ 8,274
$ 2,410 $ 2,267 $ 2,104 $ 1,500 $ 1,991 $ 1,957 $ 1,629
112,454 121,302 120,807 151,658 100,492 92,608 90,291
$ 5,197,293 $ 4,955,107 $ 4,917,575 $ 4,883,829 $ 4,621,725 $ 4,667,076 $ 4,435,684
3,162 5,127 4,500 10,024 3,973 2,992 4,619
279,250 288,653 290,861 297,649 289,083 291,219 293,522
257,678 270,702 298,293 306,344 318,863 400,307 433,121
119,619 118,674 117,346 115,328 116,128 115,731 114,405
3,702 3,867 3,977 4,051 4,053 4,138 4,276
16,999 13,224 13,750 13,875 12,618 10,386 10,379
455,475 453,175 450,900 450,660 446,990 444,805 444,980
2.90% 2.80% 3.50% 3.70% 4.30% 4.50% 4.90%
0.040% 0.040% 0.040% 0.040% 0.040% 0.042% 0.053%
0.860% 0.860% 0.870% 0.890% 0.870% 0.900% 1.120%
72,000 72,000 75,000 75,000 75,000 72,000 72,000
94 96 121 113 118 130 129
3,092 3,103 3,104 3,078 3,032 2,970 2,899
17,169 17,194 16,653 16,142 16,110 15,572 14,915
12,003 12,297 11,525 11,579 12,305 14,307 14,893
5,608 5,484 5,299 5,798 6,166 6,477 6,224
193
State of South Dakota
Operating Indicators by Function
Last Ten Fiscal Years (continued)
Fiscal Year
Law, Justice, Public Protection, and Regulation 2020 2019 2018
Corrections
Adult System ADP (Average Daily Population) 3,772 3,902 3,949
Avg. Daily Population on Supervision 3,186 2,951 2,573
Juvenile Institutional and Placement ADP 191 197 231
Unified Judicial System
Felony Offenses Filings 13,476 12,527 12,259
Class One Misdemeanor Filings 19,725 20,828 22,144
Class Two Misdemeanor Filings 92,764 104,426 115,784
Attorney General
New Cases Opened/Closed/Pending (Thousands) 1.3 / 1.6 / 2.3 1.1 / 1.9 / 2.0 1.4 / 1.7 / 2.3
Investigations Conducted by DCI 1,277 819 935
Public Safety
Patrol of Public Highways (Percentage) 63% 60% 59%
Patrol of Public Highways (Hours) N/A N/A N/A
Driver Licenses Issued 169,997 163,658 196,733
Military and Veterans Affairs
Assigned Strength of the Army Guard 3,072 3,141 3,148
Assigned Strength of the Air Guard 1,055 1,055 1,051
Appraiser Program
New / Renewed Licenses 5 / 402 14 / 410 14 / 387
Revenue Financial Services
Banking Institutions Examined N/A N/A N/A
Dealer, Broker & Investment Advisor
Agents Licensed 107,764 104,188 100,956
Renewed & Issued Insurance
Appointments/Licenses 403,025 366,307 360,232
Revenue Boards and Commissions
New & Renewed Licenses Issued 5,280 6,396 6,939
Public Utilities Commission
Dockets Opened 128 180 183
Agriculture and Natural Resources
Agriculture
Wildfires Suppressed: (Fires/Acres) 324 / 3,404 259 / 4,413 731 / 65,659
Dairy Inspections 378 458 434
Marketing Consultations N/A N/A N/A
Insect & Disease Individual Assists 1,599 1,072 412
Game, Fish and Parks
Total Park Visitations 11,255,067 7,298,423 7,646,131
Acres of Walk-In Areas 1,200,000 1,270,000 1,355,000
Environment and Natural Resources
Dollars Awarded/Number of Grants and Loans 189.6 M / 112 155.0 M / 70 66.1 M / 66
Total Number of Regulated Facilities N/A 29,463 29,225
Petroleum Release Compensation
Petroleum Release Cases Initiated 36 34 30
Abandoned Tank Site Cases Initiated 35 36 39
Transportation
Transportation
Percent of Non-interstate State Highway System
Main Lane Pavement Mileage Rated Good or Better
on Condition Index 87 88 86
Percent of Interstate Pavement in Excellent
Condition Based on Condition Index 50 56 50
Education
Student K-12 Public School Fall Enrollment 136,119 135,317 133,861
Economic Resources
Tourism and State Development
Capital Investment Reported (Millions) N/A N/A $ 400.9
New Jobs Created (Calendar Year) N/A N/A 1,138
Tourism's Impact on South Dakota Economy (Billions) $ 2.75 $ 2.65 $ 2.64
Source: State's Budget System and/or survey of department finance personnel.
N/A= Not Applicable
194
Fiscal Year
2017 2016 2015 2014 2013 2012 2011
3,844 3,613 3,610 3,645 3,637 3,565 3,479
2,480 2,345 2,315 2,297 2,473 2,418 2,452
316 482 650 649 688 526 459
11,512 10,800 10,392 9,413 6,856 7,225 6,456
21,884 22,055 20,979 20,518 22,720 21,690 19,929
114,231 114,445 112,323 105,213 111,461 117,594 112,853
1.0 / 2.0 / 2.0 2.1 / 1.8 / 2.1 1.9 / 2.0 / 1.9 2.2 / 2.9 / 1.5 1.2 / 2.2 / 1.6 .85 / 2.1 / 1.5 1.0 / 1.3 / 2.5
963 1,063 1,062 1,077 1,013 1,012 902
55% 59% 54% 60% 45% 46% 45%
N/A N/A N/A N/A N/A N/A 131,508
196,780 203,012 198,279 156,731 198,733 201,766 198,871
3,163 3,130 3,165 3,204 3,220 3,266 3,420
1,037 1,040 1,050 1,044 1,030 1,038 1,057
19 / 378 36 / 410 11 / 380 10 / 368 20 / 399 15 / 383 11 / 381
N/A N/A N/A 542 534 563 562
96,156 96,262 91,545 86,131 81,567 79,886 77,038
326,870 295,526 282,241 269,568 286,078 243,465 270,412
6,688 7,161 6,708 7,102 7,137 7,517 6,853
152 154 193 240 265 238 143
748 / 74,228 614 / 17,359 642 / 53,145 451 / 11,421 1,253 / 148,604 1,267 / 123,484 468 / 7,100
635 604 500 520 713 831 956
N/A N/A N/A N/A 390 375 375
317 305 279 288 491 354 307
7,729,787 7,509,840 7,605,595 8,115,000 8,091,937 7,682,751 7,469,331
1,331,000 1,392,000 1,389,734 1,270,000 1,277,000 1,271,743 1,300,000
121.6 M / 91 77.5 M / 106 118.3 M / 113 78.9M / 95 88.8M / 108 96.4M / 129 119.1M / 155
29,108 29,186 28,359 28,740 27,820 27,331 26,679
42 55 60 45 120 95 62
45 57 62 100 81 45 36
83 82 90 89 88 93 88
50 45 53 46 45 53 33
132,520 130,936 129,772 128,924 127,169 125,152 123,629
$ 257.2 $ 400.0 $ 475.0 $ 300.0 $ 400.0 $ 282.0 $ 118.0
163 3,000 3,300 4,000 3,000 4,248 4,462
$ 2.46 $ 2.36 $ 1.99 $ 1.98 $ 1.95 $ 1.86 $ 1.76
195
196
SCHEDULE OF
EXPENDITURES OF
FEDERAL AWARDS
SCHEDULE OF
EXPENDITURES OF
FEDERAL AWARDS
INDEPENDENT AUDITOR’S REPORT ON SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Kristi Noem
Governor of South Dakota
and
Members of the Legislature
State of South Dakota
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the State of South Dakota as of and for the year ended June 30, 2020, which
collectively comprise the State’s basic financial statements as listed in the table of contents and have issued
our report thereon dated December 31, 2020, which contained an unmodified opinion on those financial
statements. Our audit was conducted for the purpose of forming our opinions on the financial statements
that collectively comprise the State of South Dakota’s basic financial statements. We have not performed
any procedures with respect to the audited financial statements subsequent to December 31, 2020. Our
opinion expressed therein, insofar as it relates to entities’ financial statements that were audited by other
auditors, was based solely on the reports of the other auditors. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance), and is not a required part of the financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied by us and other auditors in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the financial statements and other additional
procedures in accordance with auditing standards generally accepted in the United States of America.
The State’s basic financial statements include the operation of the South Dakota Housing Development
Authority (discretely presented component unit), which expended $34,378,700 in federal awards which are
not included on the schedule of expenditures of federal awards for the year ended June 30, 2020. Our
audit, described above, did not include the operations of the South Dakota Housing Development Authority
because the component unit has a separately issued audit in accordance with the audit requirements of
Uniform Guidance.
Basis of Accounting
As described in Note 2C of the Notes to the Schedule of Expenditures of Federal Awards, the accompanying
schedule is prepared on the cash basis of accounting, which is a comprehensive basis of accounting other
than accounting principles generally accepted in the United States of America. Our opinion is not modified
with respect to this matter.
197
Unmodified Opinion
In our opinion, based on our audit and the reports of other auditors, the Schedule of Expenditures of Federal
Awards is fairly stated in all material respects in relation to the basic financial statements as a whole in
accordance with the cash basis of accounting described in Note 2C to the Schedule of Expenditures of
Federal Awards.
Russell A. Olson
Auditor General
April 22, 2021
198
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Federal Amount Passed
Agency Through to Non-
Number Federal Agency Total Expenditures State Agencies
10 U.S. Department of Agriculture $ 234,426,087 $ 59,857,512
11 U.S. Department of Commerce 2,874,638
12 U.S. Department of Defense 30,706,665 1,289,609
14 U.S. Department of Housing and Urban Development 6,668,963 6,531,577
15 U.S. Department of Interior 24,838,615 2,062,406
16 U.S. Department of Justice 13,822,929 7,619,256
17 U.S. Department of Labor 265,000,037 138,314
20 U.S. Department of Transportation 462,572,147 15,972,761
21 U.S. Department of Treasury 94,397,446 -
30 U.S. Equal Employment Opportunity Commission 35,023
39 General Services Administration 2,337,355
43 National Aeronautics and Space Administration 1,990,650 434,434
45 Institute of Museum and Library Services 1,255,844
45 National Endowment for the Arts 803,453 682,594
45 National Endowment for the Humanities 155,582
47 National Science Foundation 13,314,866 1,608,399
59 U.S. Small Business Administration 911,747 346,029
64 U.S. Department of Veterans Affairs 5,943,252
66 U.S. Environmental Protection Agency 497,621,446 75,267,022
81 U.S. Department of Energy 34,281,695 2,082,977
84 U.S. Department of Education 339,122,919 111,979,566
90 U.S. Election Assistance Commission 2,412,554 583,961
93 U.S. Department of Health and Human Services 844,233,628 20,757,439
94 Corporation for National and Community Service 26,066
95 Executive Office of the President 1,058,290 416,603
96 Social Security Administration 4,340,042
97 U.S. Department of Homeland Security 25,171,889 20,133,087
98 Agency for International Development 16,319 -
Total Expenditures of Federal Awards $ 2,910,340,147 $ 327,763,546
The notes to the schedule of expenditures of federal awards are an integral part of this schedule.
199
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Agriculture
SNAP Cluster
SNAP Supplemental Nutrition Assistance Program (Note 3E) 10.551 Social Services $ 128,347,246 $
State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 Social Services 9,421,462 0
Total SNAP Cluster 137,768,708 0
Child Nutrition Cluster
School Breakfast Program 10.553 Education 8,323,678 8,323,678
Child NNational School Lunch Program (Note 3A) 10.555 Education 30,567,803 27,507,002
Child NSpecial Milk Program for Children 10.556 Education 12,975 12,975
Summer Food Service Program for Children (Note 3A) 10.559 Education 4,821,866 4,737,317
Total Child Nutrition Cluster 43,726,322 40,580,972
Food Distribution Cluster
Commodity Supplemental Food Program 10.565 Education 466,709 426,105
Emergency Food Assistance Program (Administrative Costs) 10.568 Education 250,971 174,202
Food DCOVID-19 Emergency Food Assistance Program (Administrative Costs) 10.568 Education 19,340 0
Emergency Food Assistance Program (Food Commodities) (Note 3A) 10.569 Education 3,784,187 3,784,187
Total Food Distribution Cluster 4,521,207 4,384,494
Forest Service Schools and Roads Cluster
Schools and Roads - Grants to States 10.665 State Auditor 1,210,589 1,210,589
Total Forest Service Schools and Roads Cluster 1,210,589 1,210,589
Community Facilities Loans and Grants Cluster
Community Facilities Loans and Grants Cluster
Community Facilities Loans and Grants 10.766 Agreement dated 09/13/19 SDSMT 33,649 0
Total Community Facilities Loans and Grants Cluster 33,649
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 11,491,666 3,874,504
Plant and Animal Disease, Pest Control, and Animal Care 10.025
15-8446-0087-CA;
15-8446-1821-CA;
15-8446-1801-CA;
AP18VSNVSL00C002;
Plant aPlant and Animal Disease, Pest Control, and Animal Care 10.025 AP19VSNVSL00C026 Agriculture/SDSU 317,405 0
Plant aPlant and Animal Disease, Pest Control, and Animal Care - Animal Disease Traceability (ADT) 19-9746-2132-CA Animal Industry Board 82,015 0
Plant and Animal Disease, Pest Control, and Animal Care - National Surveillance and Response for
Animal Health Activities (Umbrella) 19-9746-2216-CA Animal Industry Board 176,665 0
Total CFDA #10.025 576,085 0
Conservation Reserve Program 10.069 NR196740XXXXG009 SDSU 20,221 0
Market News 10.153 15-LPSMN-SD-0005 Agriculture 42,190 0
16SCBGPSD0047;
AM190100XXXXG031;
AM180100XXXXG049;
Specialty Crop Block Grant Program - Farm Bill - SDDA Dakota Flavor Marketplace 10.170 AM170100XXXXG043 Agriculture 156,082 140,006
Trade Mitigation Program Eligible Recipient Agency Operational Funds 10.178 Education 50,000 50,000
2017-38640-26916;
2019-38640-29879;
Sustainable Agriculture Research and Education 10.215 2015-38640-23781 University of Minnesota SDSU 44,449 0
Homeland Security Agricultural 10.304 2016-37620-25766 Kansas State University SDSU 17,100 0
Agriculture and Food Research Initiative (AFRI) 10.310 2016-67032-25011 SDSU 12,787 0
Women and Minorities in Science, Technology, Engineering, and Mathematics Fields 10.318 2014-38503-22188 SDSU 45,014 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 200
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Agriculture (continued)
National Food Safety Training, Education, Extension, Outreach, and Technical Assistance Competitive Grants
Program 10.328 20187002028877 Iowa State University SDSU 1,404 0
Crop Protection and Pest Management Competitive Grants Program 10.329
The Board of Trustees of the
Crop Protection and Pest Management Competitive Grants Program 2014-700006-22486 University of Illinois SDSU 245 0
The Nebraska Board of
Regents/University of
Crop Protection and Pest Management Competitive Grants Program RC108974AA Nebraska SDSU 4,462 0
2017-70006-27206;
Crop Protection and Pest Management Competitive Grants Program 2014-70006-22566 SDSU 110,422 0
COVID-19 Crop Protection and Pest Management Competitive Grants Program 2017-70006-27206 SDSU 447 0
Total CFDA #10.329 115,576 0
Regents of the University of
Alfalfa and Forage Research Program 10.330 2018-70005-28774 Minnesota SDSU 10,626 0
Food Insecurity Nutrition Incentive Grants Program 10.331 2018-70025-28153 SDSU 38,172 0
470300-466000364
State Mediation Grants 10.435 SD Mediation Grant - 16 Agriculture 139,119 0
Cooperative Agreements with States for Intrastate Meat and Poultry Inspection 10.475 Animal Industry Board 1,062,014 0
North Dakota Department of
Meat, Poultry, and Egg Products Inspection 10.477 FSIS-C-32-2010/01 Game, Fish and Parks SDSU 5,977 0
0
Cooperative Extension Service 10.500
The Nebraska Board of
2018-70027-28586; Regents/University of
Cooperative Extension Service 20154920024226 Nebraska SDSU 34,391 0
Board of Trustees of
Cooperative Extension Service 2018-39592-28959 Michigan State University SDSU 14,398 0
Cooperative Extension Service 20194610030279 University of Minnesota SDSU 25,194 0
20184159028723;
Cooperative Extension Service 20194152029987 SDSU 3,191,634 29,601
COVID-19 Cooperative Extension Service SDSU 4,404 0
Total CFDA #10.500 3,270,021 29,601
CACFP Meal Service Training Grants 10.534 Education 18,940 0
SNAP Fraud Framework Implementation Grant 10.535 Social Services 20,540 0
Child Nutrition-Technology Innovation Grant 10.541 Education 14,487 0
193SD708W1003;
19SD808W5003;
183SD708W1006;
WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Note 3I) 10.557 203SD708W1003 Health 14,611,442 963,722
Child and Adult Care Food Program 10.558 Education 7,350,461 6,423,535
State Administrative Expenses for Child Nutrition 10.560 Education 1,473,185 0
Team Nutrition Grants 10.574 Education 173,057 0
Farm to School Grant Program 10.575 CN-F2S-PLN-19-SD-1 Brookings School District 5-1 SDSU 21,208 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 201
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Agriculture (continued)
18SD701W5414;
WIC Grants to States (WGS) 10.578 17SD542W5412 Health 87,313 3,625
Child Nutrition Discretionary Grants Limited Availability - NSLP Equipment 10.579 Education 101,443 96,151
Fresh Fruit and Vegetable Program - Administrative Review and Training Method II 10.582 Education 1,654,169 1,615,502
Forestry Research - Forest Inventory Analysis 10.652 16-JV-11242305-033 Agriculture 28,388 0
Cooperative Forestry Assistance 10.664
15-DG-11020000-038;
16-DG-11020000-014;
17-DG-11020000-039;
18-DG-11020000-054;
19-DG-11020000-054;
20-DG-11020000-010;
19-DG-11020000-016;
16-DG-11020000-033;
17-DG-11020000-046;
16-DG-11020000-013;
17-DG-11020000-041;
18-DG-11020000-051;
Cooperative Forestry Assistance 19-DG-11020000-053 Agriculture 4,145,500 484,811
Cooperative Forestry Assistance - Hazardous Fuels Reduction 14-DG-11020000-051 Agriculture 110,434 0
Total CFDA #10.664 4,255,934 484,811
Forest Legacy Program 10.676 16-DG-11020000-027 Agriculture 186 0
16-DG-11020000-022;
17-DG-11020000-069;
18-DG-11020000-059;
Forest Health Protection - Western Bark Beetle 10.680 19-DG-11020000-024 Agriculture 83,044 0
Soil and Water Conservation 10.902 NR196740XXXXG009 SDSU 6,740 0
Environmental Quality Incentives Program 10.912
Environmental Quality Incentives Program - Agro-Forestry 10.912 65-6740-17-017 Agriculture 6,371 0
Environmental Quality Incentives Program - Thinning 65-6740-17-018 Agriculture 11,004
NR186740XXXXG003;
Environmental Quality Incentives Program NR196740XXXXG009 SDSU 53,139 0
Total CFDA #10.912 70,514 0
Emergency Watershed Protection Program 10.923 NR19670XXXXC003 Game, Fish and Parks 55,946 0
Conservation Stewardship Program 10.924 NR196740XXXXG009 SDSU 6,740 0
Agricultural Conservation Easement Program 10.931 NR196740XXXXG009 SDSU 20,221 0
CFDA # UNKNOWN - U.S. Department of Agriculture 10.UNKNOWN
Challenge Cost-Share for Long Term Archival Services for Black Hills National Forest Historical
Collection 17-CS-11020300-023 BHSU 8,454 0
Challenge Cost-Share Supplemental for Long Term Archival Services for Black Hills National Forest
Historical Collection 20-CS-11020300-020 BHSU 4,697 0
Total CFDA # UNKNOWN - U.S. Department of Agriculture 13,151 0
Total U.S. Department of Agriculture 234,426,087 59,857,512
U.S. Department of Commerce
Economic Development Cluster
Investments for Public Works and Economic Development Facilities 11.300 DSU 1,270,636 0
Total Economic Development Cluster 1,270,636 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 202
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Commerce (continued)
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 322,199 0
Governor's Office of
Cluster Grants - FY2017 Regional Innovation Strategies Program 11.020 ED17HDQ0200087 Economic Development 266,823 0
Bureau of Information and
State and Local Implementation Grant Program 11.549 46-10-S18046 Telecommunications 167,541 0
70NANB18H013;
Manufacturing Extension Partnership 11.611 70NANB18H234 USD 847,439 0
Total U.S. Department of Commerce 2,874,638 0
U.S. Department of Defense
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 3,573,212 197,400
SP4800-19-2-1983;
Procurement Technical Assistance For Business Firms 12.002 SP4800-20-2-2083 USD 196,698 52,443
Payments to States in Lieu of Real Estate Taxes 12.112 State Treasurer 8,175 8,175
State Memorandum of Agreement Program for the Reimbursement of Technical Services - Defense Environment and Natural
Environmental Restoration Program 12.113 Resources 118,502 0
Military Construction, National Guard 12.400
Military Construction, National Guard - Aviation Readiness Center W912MM-17-2-2001 Military 7,863,749 0
Military Construction, National Guard - South Gate Access Control Building W912MM-20-2-2001 Military 193,749 0
Total CFDA #12.400 8,057,498
National Guard Military Operations and Maintenance (O&M) Projects 12.401 0
National Guard Military Operations and Maintenance (O&M) Projects - Interservice Support Agreement:
Aberdeen Armed Forces Reserve Center W5BM2T-87001-001 Military 47,295 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-20-2-1022;
ANG Environmental Resources Management W912MM-16-2-1022 Military 62,548 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-20-2-1021;
ANG Facilities Operations and Maintenance Activities W912MM-19-2-1021 Military 1,412,293 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-15-2-1010;
ARNG Anti-Terrorism Program Coordinator Activities W912MM-20-2-1010 Military 99,246 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-15-2-1007;
ARNG Training Ranges/Range Training W912MM-20-2-1007 Military 31,171 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-20-2-1014;
ARNG Administrative Services W912MM-19-2-1014 Military 49,263
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-20-2-1024;
ANG Fire Protection Activities W912MM-16-2-1024 Military 2,419,639 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-16-2-1023;
ANG Security Guard Activities W912MM-20-2-1023 Military 897,335 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-15-2-1040;
ARNG Distance Learning W912MM-20-2-1040 Military 196,652 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-20-2-1004;
ARNG Electronic Security W912MM-19-2-1004 Military 217,912 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-15-2-1002;
ARNG Environmental Resource Management W912MM-20-2-1002 Military 814,871 0
W912MM-19-2-1001;
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-15-2-1001;
ARNG Real Property Operations and Maintenance W912MM-20-2-1001 Military 9,706,769 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-20-2-1003;
ARNG Security Guard Activities W912MM-15-2-1003 Military 1,082,596 0
National Guard Military Operations and Maintenance (O&M) Projects - Master Cooperative Agreement: W912MM-20-2-1005;
ARNG Telecommunications W912MM-15-2-1005 Military 505,954 0
Total CFDA #12.401 17,543,544 0
W912MM-19-2-4002;
National Guard ChalleNGe Program (STARBASE) 12.404 W912MM-20-2-4002 Military 1,031,592 1,031,591
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 203
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Defense (continued)
Basic, Applied, and Advanced Research in Science and Engineering 12.630 W911NF-17-2-0044 SDSU 32,880 0
CFDA # UNKNOWN - U.S. Department of Defense 12.UNKNOWN
Cultural Resource Agreements W9128F-10-P-0092 Game, Fish and Parks 82,337 0
Cultural Resources Management Plans W9218-F-08-A-0025 Education 62,227 0
Total CFDA # UNKNOWN - U.S. Department of Defense 144,564 0
Total U.S. Department of Defense 30,706,665 1,289,609
U.S. Department of Housing and Urban Development
Manufactured Home Dispute Resolution 14.171 Public Safety 3,798 0
Governor's Office of
Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.228 Economic Development 6,665,165 6,531,577
Total U.S. Department of Housing and Urban Development 6,668,963 6,531,577
U.S. Department of Interior
Fish and Wildlife Cluster
Sport Fish Restoration 15.605 Game, Fish and Parks 4,309,282 150,095
Wildlife Restoration and Basic Hunter Education 15.611 Game, Fish and Parks 15,326,938 937,490
Total Fish and Wildlife Cluster 19,636,220 1,087,585
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 2,332,423 41,124
Distribution of Receipts to State and Local Governments - Mineral Leasing and Taylor Grazing 15.227 Education 535,430 535,430
L15AC00005;
Discovery Center Mini-Grant
BLM Fuels Management and Community Fire Assistance Program Activities 15.228 -Closed 9/2019 Agriculture 42,001 0
Title XVI Water Reclamation and Reuse - Handicap Accessibility and Retrofitting at Angostura, Shadehill and
Rocky Point 15.504 Game, Fish and Parks 730,142 0
National Land Remote Sensing Education Outreach and Research 15.815 G18AP00077 Americaview Inc SDSU 30,148 0
Historic Preservation Fund Grants-In-Aid 15.904 Education 823,884 113,306
Outdoor Recreation Acquisition, Development and Planning 15.916 Game, Fish and Parks 708,367 284,961
Total U.S. Department of Interior 24,838,615 2,062,406
U.S. Department of Justice
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 450,964 63,880
Sexual Assault Services Formula Program 16.017 Public Safety 391,330 360,652
Joint Law Enforcement Operations 16.111 Attorney General 6,531 0
Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus 16.525 2016-WA-AX-0039 USD 45,495 5,191
Juvenile Justice and Delinquency Prevention - Allocation to States 16.540 Corrections 430,225 304,906
Missing Children's Assistance - SD Internet Crimes Against Children 16.543 2019-MC-FX-K018 Attorney General 359,561 0
National Criminal History Improvement Program (NCHIP) 16.554 BX-K027 Attorney General 751,433 0
Crime Victim Assistance 16.575 Public Safety 5,983,859 5,479,166
Crime Victim Compensation 16.576 Public Safety 59,219 59,219
Crime Victim Assistance/Discretionary Grant 16.582 Public Safety 2,750 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 204
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Justice (continued)
Violence Against Women Formula Grant 16.588 Public Safety 647,400 619,882
Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program 16.589 2018-WR-AX-0014 Health 135,447 0
Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program 16.590 2016-WE-AX-0003 Attorney General 246,256 243,154
State Criminal Alien Assistance Program 16.606 Corrections 33,643 0
2018-AM-WX-0009;
Public Safety Partnership and Community Policing Grants 16.710 2018-HP-WX-0009 Attorney General 1,228,942 423,091
Special Data Collections and Statistical Studies 16.734 2019-FU-CX-K010 Attorney General 172,000 0
Edward Byrne Memorial Justice Assistance Grant Program 16.738 Public Safety 671,550 0
2018-DN-BX-0135;
DNA Backlog Reduction Program 16.741 2019-DN-BX-0041 Attorney General 476,486 0
Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 2019-CD-BX-0031 Attorney General 415,075 0
2018-AW-BX-0002;
Support for Adam Walsh Act Implementation Grant Program 16.750 2019-AW-BX-0022 Attorney General 250,436 0
Harold Rogers Prescription Drug Monitoring Program 16.754 2018-PM-BX-0016 Health 504,941 0
John R. Justice Prosecutors and Defenders Incentive Act 16.816 2019-RJ-BX-0015 Attorney General 60,115 60,115
Justice Reinvestment Initiative 16.827 Corrections 451,329 0
Technical Assistance Grant 16.UNKNOWN SJI-20-T-008 State Justice Institute Unified Judicial System 47,942 0
Total U.S. Department of Justice 13,822,929 7,619,256
U.S. Department of Labor
Employment Service Cluster
Employment Service/Wagner-Peyser Funded Activities 17.207 Labor 4,458,565 0
Jobs for Veterans State Grants 17.801 Labor 361,685 0
Local Veterans' Employment Representative Program 17.804 Labor 106,528 0
Total Employment Service Cluster 4,926,778
WIOA Cluster
WIOA Adult Program 17.258 Labor 2,519,126 89,987
WIOA Youth Activities 17.259 Labor 2,056,863 0
WIOA Dislocated Worker Formula Grants 17.278 Labor 667,855 47,749
Total WIOA Cluster 5,243,844 137,736
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 74,378 0
Labor Force Statistics 17.002 Labor 532,451 0
Unemployment Insurance (Note 3K) 17.225
Unemployment Insurance (Note 3K) Labor 250,244,880 0
COVID-19 Unemployment Insurance Labor 1,580,332 0
Total CFDA #17.225 251,825,212 0
Senior Community Service Employment Program 17.235 Labor 453,248 0
Trade Adjustment Assistance 17.245 Labor 650,124 0
Work Opportunity Tax Credit Program (WOTC) 17.271 Labor 34,795 0
Temporary Labor Certification for Foreign Workers 17.273 Labor 107,216 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 205
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Labor (continued)
COVID-19 WIOA National Dislocated Worker Grants / WIA National Emergency Grants 17.277 Labor 968 0
Apprenticeship USA Grants 17.285 Labor 633,195 578
Consultation Agreements 17.504
CS-32043-CSO;
Consultation Agreements CS-31043-CS9 SDSU 517,809 0
COVID-19 Consultation Agreements CS-32043-CSO SDSU 19 0
Total CFDA #17.504 517,828 0
Total U.S. Department of Labor 265,000,037 138,314
U.S. Department of Transportation
Federal Transit Cluster
Bus and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 Transportation 2,770,056 2,770,056
Total Federal Transit Cluster 2,770,056 2,770,056
FMCSA Cluster
Motor Carrier Safety Assistance 20.218 Public Safety 2,582,875 0
Motor Carrier Safety Assistance High Priority Activities Grants and Cooperative Agreements 20.237 IT064601G00000 Transportation 1,844,309 0
Total FMCSA Cluster 4,427,184 0
Highway Planning and Construction Cluster
Highway Planning and Construction 20.205 Transportation 420,024,184 2,179,225
Recreational Trails Program 20.219 Game, Fish and Parks 1,045,372 303,963
Total Highway Planning and Construction Cluster 421,069,556 2,483,188
Highway Safety Cluster
State and Community Highway Safety 20.600 Public Safety 1,607,077 432,543
National Priority Safety Programs 20.616 Public Safety 914,009 252,500
Total Highway Safety Cluster 2,521,086 685,043
Transit Services Programs Cluster
Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 Transportation 528,729 528,729
Total Transit Services Programs Cluster 528,729 528,729
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 331,430 14,239
Airport Improvement Program (Note 3J) 20.106 510692 Transportation 1,011,712 0
Commercial Drivers License Program Improvement Grant 20.232 Public Safety 18,500 0
Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research 20.505 Transportation 420,017 161,257
Formula Grants for Rural Areas and Tribal Transit Program 20.509
Formula Grants for Rural Areas and Tribal Transit Program Transportation 5,397,438 5,397,438
COVID-19 Formula Grants for Rural Areas and Tribal Transit Program Transportation 3,799,635 3,799,635
Total CFDA #20.509 9,197,073 9,197,073
Public Transportation Research, Technical Assistance, and Training 20.514 Transportation 13,948 13,948
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 Public Safety 1,134,185 0
National Highway Traffic Safety Administration (NHTSA) Discretionary Safety Grants and Cooperative
Agreements - State Support of the Fatal Accident Reporting System (FARS) 20.614 DTNH2217H00143 Public Safety 43,711 0
E-911 Grant Program 20.615 Public Safety 364,480 0
Pipeline Safety Program State Base Grant 20.700 693JK31930039PGSB Public Utilities Commission 197,214 0
Interagency Hazardous Materials Public Sector Training and Planning Grants 20.703 Public Safety 130,309 119,228
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 206
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Transportation (continued)
State Damage Prevention Program Grants 20.720 693JK31940019PSDP Public Utilities Commission 20,000 0
National Infrastructure Investments 20.933 Transportation 1,600,000 0
Nationally Significant Freight and Highway Projects 20.934 Transportation 16,772,957 0
Total U.S. Department of Transportation 462,572,147 15,972,761
U.S. Department of Treasury
19-LITC0434-01;
Low Income Taxpayer Clinics 21.008 20-LITC0434-02 USD 116,112 0
COVID-19 Coronavirus Relief Fund 21.019 State of South Dakota 94,281,334 0
Total U.S. Department of Treasury 94,397,446 0
U.S. Equal Employment Opportunity Commission
Employment Discrimination - State and Local Fair Employment Practices Agency Contracts 30.002 EECCN100108 Labor 35,023 0
Total U.S. Equal Employment Opportunity Commission 35,023 0
General Services Administration
Donation of Federal Surplus Personal Property (Note 3B) 39.003 Bureau of Administration 1,902,308 0
Election Reform Payments - Help America Vote Act 39.011 Secretary of State 435,047 0
Total General Services Administration 2,337,355 0
National Aeronautics and Space Administration
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 1,979,100 434,434
Science - NASA @ My Library 43.001 00956 Space Science Institute Education 3,105 0
Exploration 43.003
National Space Grant
Exploration 80NSSC18M0035 Foundation SDSU 7,875 0
University Of Alabama
Exploration NNX16AH16A Huntsville SDSU 570 0
Total CFDA #43.003 8,445 0
Total National Aeronautics and Space Administration 1,990,650 434,434
Institute of Museum and Library Services
Grants to States 45.310 0
Grants to States Education 1,240,344 0
COVID-19 Grants to States Education 15,500 0
Total CFDA #45.310 1,255,844
Total Institute of Museum and Library Services 1,255,844 0
National Endowment for the Arts
Promotion of the Arts Grants to Organizations and Individuals 45.024 1854217-55-19 SDSU 11,184 0
Promotion of the Arts Partnership Agreements 45.025 Tourism 792,269 682,594
Total National Endowment for the Arts 803,453 682,594
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 207
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
National Endowment for the Humanities
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 12,037 0
Promotion of the Humanities Federal/State Partnership 45.129
South Dakota Humanities
Promotion of the Humanities Federal/State Partnership 8021; SO-253172-17; 9030 Council SDSU 2,399 0
Promotion of the Humanities Federal/State Partnership - Challenge Grants - Annual Ethics, Law, and South Dakota Humanities
Society Lecture 8292 Council USD 375 0
South Dakota Humanities
Promotion of the Humanities Federal/State Partnership - Challenge Grants - Annual Schell Lecture 8324 Council USD 500 0
Promotion of the Humanities Federal/State Partnership - Challenge Grants - Flutter Productions
Evaluation 18-0081 Black Hills Works, Inc. USD 15,582 0
Promotion of the Humanities Federal/State Partnership - Challenge Grants - Honors 1st Year Reading South Dakota Humanities
Project 8229 Council USD 1,000 0
South Dakota Humanities
Promotion of the Humanities Federal/State Partnership - Challenge Grants - Native Voices Lecture 8281 Council USD 500 0
Total CFDA #45.129 20,356
Promotion of the Humanities Division of Preservation and Access - National Digital Newspaper Program 45.149 PJ-50136-14 Education 123,189 0
Total National Endowment for the Humanities 155,582 0
National Science Foundation
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 13,314,866 1,608,399
Total National Science Foundation 13,314,866 1,608,399
U.S. Small Business Administration
SBAHQ19B0062;
Small Business Development Centers 59.037 SBAHQ20B0039 USD 632,905 346,029
Women's Business Ownership Assistance 59.043 0
Women's Business Ownership Assistance - Renewal SBAHQ-17-W-0015 BHSU 163,698 0
COVID-19 Women's Business Ownership Assistance ; SBAHQ20C0163 BHSU 11,340 0
Total CFDA #59.043 175,038
Veterans Outreach Program 59.044 UND01-14996 University of North Dakota BHSU 16,335 0
Federal and State Technology Partnership Program 59.058 SBAHQ18G0022 USD 87,469 0
Total U.S. Small Business Administration 911,747 346,029
U.S. Department of Veterans Affairs
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 1,098 0
Veterans State Domiciliary Care (Note 3C) 64.014 Veterans Affairs 289,552 0
Veterans State Nursing Home Care (Note 3C) 64.015 Veterans Affairs 4,322,608 0
VA Grants for Adaptive Sports Programs for Disabled Veterans and Disabled Members of the Armed Forces 64.034 SPORTS-19-114 SDSU 14,986 0
Vocational and Educational Counseling For Servicemembers and Veterans 64.125 V101 (223C) P-5181 Veterans Affairs 186,766 0
FAI Number SD-18-06;
Veterans Cemetery Grants Program 64.203 36C78619D0057 Veterans Affairs/ BHSU 1,128,071 0
National Cemetery Administration 64.UNKNOWN VA786J85074 BHSU 171 0
Total U.S. Department of Veterans Affairs 5,943,252 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 208
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Environmental Protection Agency
Clean Water State Revolving Fund Cluster
Environment and Natural
Capitalization Grants for Clean Water State Revolving Funds (Notes 3F and 3G) 66.458 Resources 298,891,039 46,137,875
Total Clean Water State Revolving Fund Cluster 298,891,039 46,137,875
Drinking Water State Revolving Fund Cluster
Environment and Natural
Capitalization Grants for Drinking Water State Revolving Funds (Notes 3F and 3G) 66.468 Resources 190,275,240 27,822,553
Total Drinking Water State Revolving Fund Cluster 190,275,240 27,822,553
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 55,665 0
Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Environment and Natural
Clean Air Act 66.034 Resources 278,297 0
Environment and Natural
State Clean Diesel Grant Program 66.040 Resources 490,775 0
Environment and Natural
Water Pollution Control State, Interstate, and Tribal Program Support 66.419 Resources 297,529 62,300
Environment and Natural
Water Quality Management Planning 66.454 Resources 61,833 56,148
Nonpoint Source Implementation Grants 66.460
Environment and Natural
Nonpoint Source Implementation Grants Resources 1,821,129 1,143,989
South Dakota Grassland
Nonpoint Source Implementation Grants 999818515 Coalition SDSU 1,225 0
South Dakota Soil Health
Nonpoint Source Implementation Grants 2017-84/99818517 Coalition SDSU 7,751 0
South Dakota Discovery
Nonpoint Source Implementation Grants 99818517 Center & Aquarium SDSU 4,077 0
Total CFDA #66.460 1,834,182 1,143,989
BG-96810113-0; Environment and Natural
Performance Partnership Grants 66.605 BG-96810116-0 Resources/Agriculture 4,272,958 44,157
Environment and Natural
Environmental Information Exchange Network Grant Program and Related Assistance 66.608 Resources 41,841 0
Environment and Natural
Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative Agreements 66.802 Resources 117,120 0
Environment and Natural
Underground Storage Tank (UST) Prevention, Detection and Compliance Program 66.804 Resources 216,839 0
Environment and Natural
Leaking Underground Storage Tank Trust Fund Corrective Action Program 66.805 Resources 170,028 0
Environment and Natural
State and Tribal Response Program Grants 66.817 Resources 618,100 0
Total U.S. Environmental Protection Agency 497,621,446 75,267,022
U.S. Department of Energy
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 2,122,964 106,839
Governor's Office of
State Energy Program 81.041 Economic Development 335,199 0
Weatherization Assistance for Low-Income Persons 81.042 Social Services 2,020,866 1,976,138
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 209
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Energy (continued)
Science and Technology
Office of Science Financial Assistance Program 81.049 DE-SC0020216 Authority 15,055,850 0
Governor's Office of
State Heating Oil and Propane Program 81.138 Economic Development 2,740 0
CFDA # UNKNOWN - U.S Department of Energy 81.UNKNOWN
629760;
654406; Fermi National Accelerator Science and Technology
Fermi National Accelerator Laboratory Contract 630223 Laboratory Contract Authority 12,608,899 0
Lawrence Berkeley National Science and Technology
Lawrence Berkeley National Laboratory Contract 4000144149 Laboratory Authority 2,110,286 0
7255146;
7351116;
7371823;
7525117; Oak Ridge National Science and Technology
Oak Ridge National Laboratory Contract 7355157 Laboratory Contract Authority 24,891 0
Total CFDA # UNKNOWN - U.S Department of Energy 14,744,076 0
Total U.S. Department of Energy 34,281,695 2,082,977
U.S. Department of Education
Special Education Cluster (IDEA)
Special Education Grants to States (IDEA, Part B) 84.027 39,337,560 35,281,339
Special Education Preschool Grants (IDEA Preschool) 84.173 1,448,649 1,081,456
Total Special Education Cluster (IDEA) 40,786,209 36,362,795
TRIO Cluster
P042A151306;
P042A150723;
P042A150834;
TRIO Student Support Services 84.042 P042A170790; BHSU/NSU/SDSU/USD 1,233,488
COVID-19 TRIO Student Support Services 84.042 P042A150723 BHSU/NSU/SDSU/USD 15,108
TRIO Talent Search 84.044 P044A170241 USD 544,967
COVID-19 TRIO Upward Bound 84.047 P047A170328 SDSU 4,480 0
P047A180585;
P047A170328;
TRIO Upward Bound 84.047 P047A171174 NSU/SDSU/USD 999,532
Total TRIO Cluster 2,797,575 0
Student Financial Assistance Cluster (Individual Federal Awards Reported at bottom of Schedule) 192,871,952 0
Adult Education - Basic Grants to States 84.002 Labor 1,338,219 1,095,336
Civil Rights Training and Advisory Services (also known as Equity Assistance Centers) 84.004 IN4296347BHSU Indiana University BHSU 37,964 0
Title I Grants to Local Educational Agencies 84.010 Education 48,420,301 46,646,607
Migrant Education State Grant Program 84.011 Education 772,148 737,516
Higher Education Institutional Aid 84.031 DSU 510,225 0
Career and Technical Education -- Basic Grants to States 84.048 Education 4,761,453 4,215,071
Fund for the Improvement of Postsecondary Education 84.116 P116F140166 SDSU 99,242 49,365
Rehabilitation Services Vocational Rehabilitation Grants to States 84.126 Human Services 10,260,030 614,372
H129B140033;
Rehabilitation Long-Term Training 84.129 H129B190001 SDSU 110,408 0
Migrant Education Coordination Program 84.144 Education 191,512 0
Rehabilitation Services Independent Living Services for Older Individuals Who are Blind 84.177 Human Services 227,661 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 210
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Education (continued)
Special Education - Grants for Infants and Families 84.181 Education 1,477,379 0
Supported Employment Services for Individuals with the Most Significant Disabilities 84.187 Human Services 199,578 0
Education for Homeless Children and Youth 84.196 Education 225,567 191,402
Twenty-First Century Community Learning Centers 84.287 Education 4,993,106 4,871,431
Special Education - State Personnel Development Grants Program 84.323 Education 942,570 682,891
Special Education Technical Assistance and Dissemination to Improve Services and Results for Children with
Disabilities 84.326 H326T180053 USD 104,927 0
Gaining Early Awareness and Readiness for Undergraduate Programs 84.334 Education 1,475,400 618,146
Rural Education 84.358 Education 235,860 225,057
English Language Acquisition State Grants 84.365 Education 959,051 832,564
Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) 84.367 Education 9,156,466 8,742,277
Grants for State Assessments and Related Activities 84.369 Education 2,686,920 13,380
School Improvement Grants 84.377 Education 789,055 789,055
Utah Department of
Promoting Readiness of Minors in Supplemental Security Income 84.418 Utah# 146215 Education Human Services 45,085 45,085
Student Support and Academic Enrichment Program 84.424 Education 5,369,020 5,247,216
P425E201956;
P425E203122;
COVID-19 Education Stabilization Fund – Higher Education Emergency Relief Fund (HEERF) Student Aid P425E201286; BHSU/DSU/NSU/SDSMT/
Portion 84.425E 13072875 SDSU/USD 6,032,405 0
13072875;
P425F201807;
COVID-19 Education Stabilization Fund – Higher Education Emergency Relief Fund (HEERF) Institutional P425F201010; BHSU/NSU/SDMST/SDSU/
Portion 84.425F P425F200885 USD 1,201,582 0
National Assessment of Educational Progress (NAEP) 84.902 ED-IES-14-C-0102 Education 44,049 0
Total U.S. Department of Education 339,122,919 111,979,566
U.S. Election Assistance Commission
Help America Vote Act Requirements Payments 90.401 Secretary of State 585,791 583,961
2018 HAVA Election Security Grant 90.404 Secretary of State 1,826,763 0
Total U.S. Election Assistance Commission 2,412,554 583,961
U.S. Department of Health and Human Services
Aging Cluster
Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 Human Services 1,892,819 144,197
COVID-19 CARES Act Special Programs for the Aging, Title III, Part C, Nutrition Services - Title III-C of
the Older Americans Act 93.045 Human Services 240,000 240,000
COVID-19 Families First Coronavirus Response Act Special Programs for the Aging, Title III, Part C,
Nutrition Services - Older Americans Act Title III - Home-Delivered Meals 93.045 Human Services 1,200,000 1,200,000
Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 Human Services 3,769,458 3,398,343
Nutrition Services Incentive Program 93.053 Human Services 827,791 827,791
Total Aging Cluster 7,930,068 5,810,331
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 211
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Health and Human Services (continued)
CCDF Cluster
COVID-19 Child Care and Development Block Grant 93.575 Social Services 1,471,310 0
Child Care and Development Block Grant 93.575 Social Services 10,280,383 1,851,052
Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 Social Services 6,995,548
COVID-19 Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 Social Services 385,973
Total CCDF Cluster 19,133,214 1,851,052
Head Start Cluster 0
Head Start 93.600 08CH010864 Education/USD 2,897,686
Total Head Start Cluster 2,897,686
Medicaid Cluster
State Medicaid Fraud Control Units 93.775 1901SD5050; 2001SD5050 Attorney General 353,442
05-1905-SD-5000;
05-1905-SD-IMPACT;
05-2005-SDIMPACT;
State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.777 2005SD5000 Health 1,485,623
COVID-19 Medical Assistance Program - 6.2% FFCRA increase 93.778 Social Services 27,240,466 0
Medical Assistance Program 93.778 Social Services 598,279,751 0
Total Medicaid Cluster 627,359,282 0
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 9,291,545 1,737,189
Student Financial Assistance Cluster (Individual Federal Awards Reported at bottom of Schedule) 12,454,870 0
Special Programs for the Aging, Title VII, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and
Exploitation 93.041 Human Services 63,485 0
Special Programs for the Aging, Title VII, Chapter 2, Long Term Care Ombudsman Services for Older
Individuals 93.042 Human Services 75,922 0
Special Programs for the Aging, Title III, Part D, Disease Prevention and Health Promotion Services 93.043 Human Services 148,762 11,000
Special Programs for the Aging, Title IV, and Title II, Discretionary Projects 93.048 Human Services 212,586 82,998
National Family Caregiver Support, Title III, Part E 93.052 Human Services 651,562 161,045
Chronic Diseases: Research, Control, and Prevention 93.068 73-1328414 SDSU 6,942 0
Public Health Emergency Preparedness 93.069 NU90TP922021 Health 4,965,079 95,521
Medicare Enrollment Assistance Program 93.071 Human Services 76,840 35,435
Lifespan Respite Care Program 93.072 Human Services 60,862 0
Cooperative Agreements to Promote Adolescent Health through School-Based HIV/STD Prevention and N787PS004310;
School-Based Surveillance 93.079 NU5887PS004310 Health 93,874 0
Guardianship Assistance 93.090
Guardianship Assistance Social Services 163,125 0
COVID-19 Guardianship Assistance - 6.2% FFCRA increase Social Services 7,642 0
Total CFDA #93.090 170,767 0
Affordable Care Act (ACA) Personal Responsibility Education Program 93.092 1901SDPREP Health 218,609 182,568
Area Health Education Centers - Point of Service Maintenance and Enhancement Awards 93.107 U77HP26850 USD 416,466 255,593
Maternal and Child Health Federal Consolidated Programs 93.110
Maternal and Child Health Federal Consolidated Programs T73MC00037 USD 699,011 0
Maternal and Child Health Federal Consolidated Programs - SD State Systems Development Initiative
and Children's Oral Healthcare Access Program H18MC00046 Health 112,409 0
Total CFDA #93.110 811,420 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 212
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Health and Human Services (continued)
NU52PS004697;
Project Grants and Cooperative Agreements for Tuberculosis Control Programs 93.116 NU52PS210204 Health 250,584 0
Emergency Medical Services for Children 93.127 H33MC06693 USD 128,722 0
Cooperative Agreements to States/Territories for the Coordination and Development of Primary Care Offices 93.130 U68HP11439 Health 141,021 0
NUF2CE002491;
NU17CE924922;
Injury Prevention and Control Research and State and Community Based Programs - Sexual Violence NU17CE924866;
Prevention and Education 93.136 NU17CE924994 Health 1,345,980 112,507
Community Programs to Improve Minority Health Grant Program 93.137 CPIMP151092 USD 339,153 31,720
Protection and Advocacy for Individuals with Mental Illness 93.138 Human Services 160,000 0
Projects for Assistance in Transition from Homelessness (PATH) 93.150 Social Services 274,747 274,631
Family Planning Services 93.217 FPHPA006469 Health 1,362,248 628,967
Title V State Sexual Risk Avoidance Education (Title V State SRAE) Program 93.235 1901SDSRAE Health 135,966 122,465
H54RH00024;
State Rural Hospital Flexibility Program 93.241 U2WRH33329 Health 830,526 0
Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243
Substance Abuse and Mental Health Services Projects of Regional and National Significance - Project
AWARE H79TI082565 Education 1,121,819 592,625
Substance Abuse and Mental Health Services Projects of Regional and National Significance Social Services/USD 1,649,917 0
Substance Abuse and Mental Health Services Projects of Regional and National Significance - Strategic
Prevention Framework State Incentive Grant Social Services 155,437 0
Southeastern Behavioral
Substance Abuse and Mental Health Services Projects of Regional and National Significance H79SM081688 HealthCare SDSU 163,988 0
Total CFDA #93.243 3,091,161 592,625
Advanced Nursing Education Workforce Grant Program 93.247 T94HP30879; D09HP28685 SDSU 383,207 108,692
Early Hearing Detection and Intervention 93.251 H61MC28391; H61MC33906 Health/USD 220,641 22,473
Immunization Cooperative Agreements 93.268 NH23IP922581 Health 12,469,063 44,604
Centers for Disease Control and Prevention Investigations and Technical Assistance 93.283 283-02-9026 Social Services 37,889 0
Small Rural Hospital Improvement Grant Program 93.301
Small Rural Hospital Improvement Grant Program H3HRH00021 Health 485,746 485,746
COVID-19 Small Rural Hospital Improvement Grant Program Health 34,313 34,313
Total CFDA #93.301 520,059 520,059
PPHF 2018: Office of Smoking and Health- National State-Based Tobacco Control Programs-Financed in part NU58DP0005996;
by 2018 Prevention and Public Health funds (PPHF) 93.305 NU58DP005996 Health 883,405 0
Outreach Programs to Reduce the Prevalence of Obesity in High Risk Rural Areas 93.319 NU58DP006571 SDSU 355,367 0
0
Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.323
NU50CK000380;
Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) NU58CK000512 Health 1,363,053 0
COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Health 1,042,762 0
Total CFDA #93.323 2,405,815 0
State Health Insurance Assistance Program 93.324 Human Services 267,528 220,190
Behavioral Risk Factor Surveillance System 93.336 NU58DP006063 Health 330,224 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 213
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Health and Human Services (continued) 0
Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis
Response 93.354
Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health NU90TP921980;
Crisis Response NU90TP922117 Health 1,616,960 0
COVID-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response:
Public Health Crisis Response NU90TP922117 Health 3,057,371 0
Total CFDA #93.354 4,674,331 0
Nurse Education, Practice Quality and Retention Grants 93.359
Nurse Education, Practice Quality and Retention Grants UK1HP31729 SDSU 488,962 0
COVID-19 Nurse Education, Practice Quality and Retention Grants UK1HP31729 SDSU 5,460 0
Total CFDA #93.359 494,422 0
ACL Independent Living State Grants Program 93.369 Human Services 84,609 84,175
The State Flexibility to Stabilize the Market Grant Program 93.413 Labor 63,977 0
Improving the Health of Americans through Prevention and Management of Diabetes and Heart Disease and
Stroke - Diabetes and Heart Disease & Stroke Prevent Programs 93.426 NU58DP006526 Health 1,931,501 0
ACL National Institute on Disability, Independent Living, and Rehabilitation Research 93.433 SGU-USD-2018-01 Sinte Gleska University USD 115,980 0
Food Safety and Security Monitoring Project 93.449 HHSF223201310169C Agriculture 2,772
0
CDC Undergraduate Public Health Scholars Program (CUPS): A Public Health Experience to Expose
Undergraduates Interested in Minority Health to Public Health and the Public Health Professions 93.456 NU50MN000004 Kennedy Krieger Inc. USD 37,818 0
ACL Assistive Technology 93.464 Human Services 394,172 394,172
MaryLee Allen Promoting Safe and Stable Families Program 93.556 Social Services 711,207 0
Temporary Assistance for Needy Families 93.558 Social Services 21,193,463 374,517
Child Support Enforcement (Note 3N) 93.563 Social Services 5,320,468 0
Refugee and Entrant Assistance State/Replacement Designee Administered Programs 93.566 Social Services 103,817 0
Low-Income Home Energy Assistance 93.568 Social Services 17,360,384 931,333
Community Services Block Grant 93.569 Social Services 3,087,188 2,949,005
0
State Court Improvement Program 93.586
State Court Improvement Program 1901SDSCIP Unified Judicial System 101,884 101,884
State Court Improvement Program - Data Sharing 1901SDSCID; 1801SDSCID Unified Judicial System 58,698 7,598
State Court Improvement Program - Training 1801SDSCIT; 1901SDSCIT Unified Judicial System 59,858 14,782
Total CFDA #93.586 220,440 124,264
Community-Based Child Abuse Prevention Grants - Child Abuse Prevention and Treatment 93.590 Social Services 180,365 0
Grants to States for Access and Visitation Programs 93.597 Public Safety 106,214 106,214
Chafee Education and Training Vouchers Program (ETV) 93.599 Social Services 58,750 0
Adoption and Legal Guardianship Incentive Payments 93.603 Social Services 335,400 0
Voting Access for Individuals with Disabilities - Grants for Protection and Advocacy Systems 93.618 Human Services 50,000 0
Developmental Disabilities Basic Support and Advocacy Grants 93.630 Human Services 550,338 490,819
University Centers for Excellence in Developmental Disabilities Education, Research, and Service 93.632 90DDUC0024; 90DDTI0032 USD 611,692 0
ACA-Transforming Clinical Practice Initiative: Practice Transformation Networks (PTNs) 93.638 DSU 160,634 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 214
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Health and Human Services (continued)
Children's Justice Grants to States 93.643 Social Services 93,636 0
Stephanie Tubbs Jones Child Welfare Services Program 93.645 Social Services 534,162 0
Foster Care Title IV-E 93.658
Foster Care Title IV-E Social Services 7,142,084 0
COVID-19 Foster Care Title IV-E - 6.2% FFCRA increase Social Services 194,965 0
Total CFDA #93.658 7,337,049 0
Adoption Assistance 93.659
Adoption Assistance Social Services 6,143,121 0
COVID-19 Adoption Assistance - 6.2% FFCRA increase Social Services 306,806 0
Total CFDA #93.659 6,449,927 0
COVID-19 Emergency Grants to Address Mental and Substance Use Disorders During COVID-19 93.665 Social Services 586 0
Social Services Block Grant 93.667 Social Services 4,245,237 0
Child Abuse and Neglect State Grants 93.669 Social Services 58,348 0
Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services 93.671 Public Safety 767,951 723,357
John H. Chafee Foster Care Program for Successful Transition to Adulthood 93.674 Social Services 568,007 355,797
Empowering Older Adults and Adults with Disabilities through Chronic Disease Self-Management Education
Programs - Financed by Prevention and Public Health Funds (PPHF) 93.734 90CSSG0028 SDSU 115,394 0
State Public Health Approaches for Ensuring Quitline Capacity - Funded in part by Prevention and Public
Health Funds (PPHF) 93.735 NU58DP005319 Health 61,555 0
Evidence-Based Falls Prevention Programs Financed Solely by Prevention and Public Health Funds (PPHF) 93.761 90FPSG0022 SDSU 37,694 6,897
Children's Health Insurance Program 93.767
Children's Health Insurance Program Social Services 26,438,159 0
COVID-19 Children's Health Insurance Program - 4.34% FFCRA increase Social Services 696,098 0
Total CFDA #93.767 27,134,257 0
0
Opioid STR 93.788
Opioid STR H79T1081899 Social Services/SDSU 5,194,196 60,849
Trustees of Purdue
Opioid STR H79TI081898 University SDSU 30,218 0
Trustees of Purdue
COVID-19 Opioid STR H79TI081898 University SDSU 520
Total CFDA #93.788 5,224,934 60,849
Money Follows the Person Rebalancing Demonstration 93.791
Money Follows the Person Rebalancing Demonstration Social Services 1,288,756 0
COVID-19 Money Follows the Person Rebalancing Demonstration - 3.1% FFCRA increase Social Services 27,044 0
Total CFDA #93.791 1,315,800 0
05-1905-SD-5001;
State Survey Certification of Health Care Providers and Suppliers (Title XIX) Medicaid 93.796 2005SD5001 Health 1,037,813 0
Organized Approaches to Increase Colorectal Cancer Screening 93.800 NU58DP006107 Health 370,809 116,060
Hospital Preparedness Program (HPP) Ebola Preparedness and Response Activities 93.817 U3REP150499 Health 99,247 89,722
Maternal, Infant and Early Childhood Home Visiting Grant 93.870 X10MC32220 Health 1,064,820 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 215
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Health and Human Services (continued) 0
National Bioterrorism Hospital Preparedness Program 93.889
National Bioterrorism Hospital Preparedness Program U3REP190559 Health 1,043,266 297,864
U3REP190559CV;
COVID-19 National Bioterrorism Hospital Preparedness Program U3REP0559C3 Health 3,828 0
Total CFDA #93.889 1,047,094 297,864
Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations 93.898 NU58DP006293 Health 1,620,262 0
D04RH31802;
Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider P10RH31852;
Quality Improvement 93.912 G25RH33001 SDSU/USD 278,019 19,338
Grants to States for Operation of State Offices of Rural Health 93.913 H96RH00127 Health 204,298 0
HIV Care Formula Grants - Ryan White Care Act Title II 93.917 X07HA00010 Health 1,984,360 218,847
HIV Prevention Activities Health Department Based 93.940 NU62PS924534 Health 791,078 299,932
Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs 93.946 U01DP006196 Health 175,720 0
Block Grants for Community Mental Health Services 93.958 Social Services 1,608,798 0
Block Grants for Prevention and Treatment of Substance Abuse 93.959 Social Services 6,336,573 20,021
PPHF Geriatric Education Centers 93.969 U1QHP33081 University of North Dakota SDSU 10,146 0
Sexually Transmitted Diseases (STD) Prevention and Control Grants 93.977 NH25PS005161 Health 204,809 0
Mental Health Disaster Assistance and Emergency Mental Health 93.982 Social Services 173,783 134,504
NB01OT009190;
Preventive Health and Health Services Block Grant 93.991 NB01OT009276 Health 458,821 5,000
B04MC32571;
Maternal and Child Health Services Block Grant to the States 93.994 B04MC33867 Health 1,954,252 53,087
Telligen QPP SURS CMS 93.UNKNOWN HHSM-500-017-00012C DSU 45,300 0
Total U.S. Department of Health and Human Services 844,233,628 20,757,439
Corporation for National and Community Service
Retired and Senior Volunteer Program 94.002 18SRNSD002 BHSU 6,066 0
Volunteers in Service to America 94.013 17VSNSD001 SDSU 20,000 0
Total Corporation for National and Community Service 26,066 0
Executive Office of the President
G19MW0004A;
High Intensity Drug Trafficking Areas Program 95.001 G20MW0004A Attorney General 1,058,290 416,603
Total Executive Office of the President 1,058,290 416,603
Social Security Administration
Disability Insurance/SSI Cluster
Social Security Disability Insurance 96.001 04-0804SDDI00 Human Services 4,340,042
Total Disability Insurance/SSI Cluster 4,340,042
Total Social Security Administration 4,340,042 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 216
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
U.S. Department of Homeland Security
Non-Profit Security Program 97.008 Public Safety 119,833 119,833
Boating Safety Financial Assistance 97.012 Game, Fish and Parks 1,169,974 0
Community Assistance Program State Support Services Element (CAP-SSSE) 97.023 Public Safety 126,548 0
Crisis Counseling 97.032 Public Safety 251,586 225,152
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Public Safety 13,501,813 13,348,206
Hazard Mitigation Grant 97.039 Public Safety 953,631 906,820
Environment and Natural
National Dam Safety Program 97.041 Resources 215,700 0
Emergency Management Performance Grants 97.042 Public Safety 3,950,868 1,823,164
Pre-Disaster Mitigation 97.047 Public Safety 805,801 785,909
Homeland Security Grant Program 97.067 Public Safety 4,076,135 2,924,003
Total U.S. Department of Homeland Security 25,171,889 20,133,087
Agency for International Development
Research and Development Cluster (Individual Federal Awards Reported at bottom of Schedule) 16,319 0
Total Agency for International Development 16,319 0
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 2,910,340,147 $ 327,763,546
Research and Development Cluster 0
U.S. Department of Agriculture
Agricultural Research Basic and Applied Research 10.001 59-0206-0-115 SDSU 119 0
Agricultural Research Basic and Applied Research 10.001 58-3080-0-002 SDSU 5,935 0
Agricultural Research Basic and Applied Research 10.001 58-3060-9-049 SDSU 15,776 0
Agricultural Research Basic and Applied Research 10.001 58-5030-8-065 SDSU 17,880 0
Agricultural Research Basic and Applied Research 10.001 58-3060-9-048 SDSU 17,999 0
Agricultural Research Basic and Applied Research 10.001 58-3060-9-036 SDSU 21,723 0
Agricultural Research Basic and Applied Research 10.001 59-0206-8-192 SDSU 24,897 0
Agricultural Research Basic and Applied Research 10.001 58-3080-9-003 SDSU 59,255 0
Agricultural Research Basic and Applied Research 10.001 58-3060-7-029 SDSU 72,076 0
Agricultural Research Basic and Applied Research 10.001 59-0206-8-193 SDSU 83,245 0
Agricultural Research Basic and Applied Research 10.001 59-0206-8-194 SDSU 91,895 0
COVID-19 Agricultural Research Basic and Applied Research 10.001 59-0206-8-194 SDSU 47 0
Agricultural Research Basic and Applied Research 10.001 58-5409-4-007 SDSU 10,784 10,784
Conservation Reserve Program 10.069 68-3A75-16-500 SD Conservation Districts SDSU 14,895 0
Conservation Reserve Program 10.069 NR186740XXXXG005 SDSU 16,864 0
Wetlands Reserve Program 10.072 68-3A75-16-500 SD Conservation Districts SDSU 2,979 0
North Dakota State
Grants for Agricultural Research, Special Research Grants 10.200 20193862430282 University SDSU 12,137 0
Board of Trustees of
Grants for Agricultural Research, Special Research Grants 10.200 20193438329882 Michigan State University SDSU 59,000 0
Board of Trustees of
Grants for Agricultural Research, Special Research Grants 10.200 20173438327028 Michigan State University SDSU 74,600 0
Cooperative Forestry Research 10.202 SDSU 319,038 0
Payments to Agricultural Experiment Stations Under the Hatch Act 10.203 SDSU 908,151 0
Payments to Agricultural Experiment Stations Under the Hatch Act 10.203 415-49-02 SDSU 1,662,673 0
Animal Health and Disease Research 10.207 SDSU 69,085 0
Sustainable Agriculture Research and Education 10.215 2018-38640-28416 University of Minnesota SDSU 60 0
Sustainable Agriculture Research and Education 10.215 2018-38640-28416 University of Minnesota SDSU 33,925 1,874
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 217
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Higher Education - Institution Challenge Grants Program 10.217 2020-70003-30933 SDSU 13,839 0
Higher Education - Institution Challenge Grants Program 10.217 2018-70003-27666 SDSU 72,380 0
Biotechnology Risk Assessment Research 10.219 2018-33522-28795 SDSU 142,061 0
COVID-19 Biotechnology Risk Assessment Research 10.219 2018-33522-28795 SDSU 182 0
Fort Berthold Community
1994 Institutions Research Program 10.227 2019-38424-29292 College SDSU 27,396 0
Integrated Programs 10.303 2018-51150-28698 University of Minnesota SDSU 3,668 0
Board of Trustees of
Integrated Programs 10.303 2018-51150-28698 Michigan State University SDSU 10,224 6,601
Organic Agriculture Research and Extension Initiative 10.307 2014-51300-22233 University of Illinois SDSU 12,714 0
Specialty Crop Research Initiative 10.309 2017-51181-26829 Cornell University SDSU 38,216 0
University of
Agriculture and Food Research Initiative (AFRI) 10.310 2014-67001-21851 Tennessee/Knoxville SDSU 12,871 0
Agriculture and Food Research Initiative (AFRI) 10.310 20166800424827 University of Missouri SDSU 17,079 0
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67007-26502 Cornell University SDSU 19,190 0
Board of Trustees of
Agriculture and Food Research Initiative (AFRI) 10.310 2019-67013-29015 Michigan State University SDSU 33,582 0
Trustees of Purdue
Agriculture and Food Research Initiative (AFRI) 10.310 2015-68007-23193 University SDSU 34,835 0
Regents of the University of
Agriculture and Food Research Initiative (AFRI) 10.310 20176700725939 California-Davis SDSU 74,769 0
Board of Trustees of
COVID-19 Agriculture and Food Research Initiative (AFRI) 10.310 2019-67013-29015 Michigan State University SDSU 73 0
Agriculture and Food Research Initiative (AFRI) 10.310 2016-67016-24949 SDSU 4,392 0
Agriculture and Food Research Initiative (AFRI) 10.310 2020-68018-30656 SDSU 4,482 0
Agriculture and Food Research Initiative (AFRI) 10.310 2015-67029-23654 SDSU 12,819 0
Agriculture and Food Research Initiative (AFRI) 10.310 2017-68010-25956 SDSU 16,186 0
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67016-26775 SDSU 24,770 0
Agriculture and Food Research Initiative (AFRI) 10.310 2018-67020-27885 SDSU 27,089 0
Agriculture and Food Research Initiative (AFRI) 10.310 2019-67032-29308 SDSU 27,167 0
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67016-26776 SDSU 28,826 0
Agriculture and Food Research Initiative (AFRI) 10.310 2016-67032-25011 SDSU 30,664 0
Agriculture and Food Research Initiative (AFRI) 10.310 2019-67016-29444 SDSU 43,091 0
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67032-26016 SDSU 43,838 0
Agriculture and Food Research Initiative (AFRI) 10.310 2018-67032-27712 SDSU 44,123 0
Agriculture and Food Research Initiative (AFRI) 10.310 2018-67014-27454 SDSU 49,254 0
Agriculture and Food Research Initiative (AFRI) 10.310 20196701629958 SDSU 49,504 0
Agriculture and Food Research Initiative (AFRI) 10.310 2019-67022-29695 SDSU 57,651 0
Agriculture and Food Research Initiative (AFRI) 10.310 2018-67016-27578 SDSU 58,141 0
Agriculture and Food Research Initiative (AFRI) 10.310 20176702026335 SDSU 59,545 0
Agriculture and Food Research Initiative (AFRI) 10.310 20186701727566 SDSU 67,595 0
Agriculture and Food Research Initiative (AFRI) 10.310 2018-67016-28292 SDSU 78,320 0
Agriculture and Food Research Initiative (AFRI) 10.310 2016-68006-24630 SDSU 79,600 0
Agriculture and Food Research Initiative (AFRI) 10.310 2016-67014-24589 SDSU 89,992 0
Agriculture and Food Research Initiative (AFRI) 10.310 2019-67014-29238 SDSU 103,277 0
Agriculture and Food Research Initiative (AFRI) 10.310 2018-67020-27809 SDSU 113,483 0
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67020-26511 SDSU 126,485 0
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67014-26530 SDSU 170,763 0
Agriculture and Food Research Initiative (AFRI) 10.310 2015-67020-23453 SDSU 37,561 5,286
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67014-26210 SDSU 37,917 10,672
Agriculture and Food Research Initiative (AFRI) 10.310 2017-69008-26208 SDSU 102,964 35,117
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67024-26279 SDSU 154,602 122,368
Agriculture and Food Research Initiative (AFRI) 10.310 2017-67008-25934 SDSU 155,203 4,535
Agriculture and Food Research Initiative (AFRI) 10.310 2013-69004-20401 SDSU 174,974 46,372
Agriculture and Food Research Initiative (AFRI) 10.310 2016-68004-24768 SDSU 668,081 115,424
New ERA Rural Technology Competitive Grants Program 10.314 2018-67014-27360 SDSU 13,901 0
Sun Grant Program 10.320 2019-38502-30120 SDSU 11,594 0
Sun Grant Program 10.320 2014-38502-22598 SDSU 3,627,013 3,490,086
North Dakota State
Alfalfa and Forage Research Program 10.330 20197000530239 University SDSU 20,144 0
Food Safety Cooperative Agreements 10.479 FSIS-C-23-2018 SDSU 30,379 0
Food Safety Cooperative Agreements 10.479 FSIS-C-23-2019 SDSU 38,393 0
Cooperative Extension Service 10.500 20184610028766 SDSU 108,103 25,385
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 218
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Partnership Agreements 10.699 18-JV-11111133-031 SDSU 35,234 0
Research Joint Venture and Cost Reimbursable Agreements 10.707 19-JV-11221635-090 SDSU 3,908 0
Community Facilities Loans and Grants 10.766 Grant dated 09/26/18 SDSMT 94,127 0
Community Facilities Loans and Grants 10.766 Grant Dated 01/02/19 SDSMT 39,468 0
Norman E. Borlaug International Agricultural Science and Technology Fellowship 10.777 FX17BF-10777R033 SDSU 1,482 0
SESD Experiment Farm
Soil and Water Conservation 10.902 69-6740-17-034 Corp SDSU 26,846 0
COVID-19 Soil and Water Conservation 10.902 NR186740XXXXG006 SDSU 26 0
Soil and Water Conservation 10.902 NR196740XXXXG012 SDSU 1,362 0
Soil and Water Conservation 10.902 NR196740XXXXG005 SDSU 2,346 0
Soil and Water Conservation 10.902 NR186740XXXXG007 SDSU 14,065 0
Soil and Water Conservation 10.902 NR186740XXXXG005 SDSU 22,485 0
Soil and Water Conservation 10.902 NR186740XXXXG006 SDSU 29,433 0
Soil and Water Conservation 10.902 NR183A750023C001 SDSU 38,098 0
Soil Survey 10.903 356002041 Purdue University SDSU 9,383 0
Environmental Quality Incentives Program 10.912 69-67401-16-526 Ducks Unlimited SDSU 10,000 0
North Dakota State
Environmental Quality Incentives Program 10.912 69-3A75-17-282 University SDSU 82,973 0
Environmental Quality Incentives Program 10.912 69-6740-16-509 SDSU 1,587 0
Environmental Quality Incentives Program 10.912 NR196740XXXXG012 SDSU 2,043 0
Environmental Quality Incentives Program 10.912 NR196740XXXXG007 SDSU 2,881 0
Environmental Quality Incentives Program 10.912 69-6740-16-525 SDSU 4,067 0
Environmental Quality Incentives Program 10.912 NR186740XXXXG007 SDSU 7,033 0
Environmental Quality Incentives Program 10.912 NR186740XXXXG005 SDSU 11,243 0
Environmental Quality Incentives Program 10.912 NR196740XXXXG005 SDSU 18,765 0
Environmental Quality Incentives Program 10.912 69-3A75-17-285 SDSU 146,665 0
Conservation Stewardship Program 10.924 68-3A75-16-500 SD Conservation Districts SDSU 9,831 0
SESD Experiment Farm
Conservation Stewardship Program 10.924 69-6740-17-034 Corp SDSU 15,407 0
Conservation Stewardship Program 10.924 NR196740XXXXG005 SDSU 2,346 0
Conservation Stewardship Program 10.924 NR186740XXXXG005 SDSU 5,621 0
Conservation Stewardship Program 10.924 NR196740XXXXG012 SDSU 10,214 0
Conservation Stewardship Program 10.924 NR186740XXXXG007 SDSU 49,228 0
Conservation Stewardship Program 10.924 NR186740XXXXG006 SDSU 68,677 0
COVID-19 Conservation Stewardship Program 10.924 NR186740XXXXG006 SDSU 60 0
Agricultural Conservation Easement Program 10.931 68-3A75-16-500 SD Conservation Districts SDSU 2,085 0
Initial Development of an Interactive, Web-based Science Application Tool for Grassland Managers 10.UNKNOWN 15-JV-11221632-142 SDSU 22,674 0
Total U.S. Department of Agriculture Research and Development 11,491,666 3,874,504
U.S. Department of Commerce
Economic Development Technical Assistance 11.303 ED18DEN3030025 SDSU 241,613 0
University Corporation for
Climate and Atmospheric Research 11.431 NA16NWS4670042 Atmospheric Research SDSMT 7,703 0
National Oceanic and Atmospheric Administration (NOAA) Cooperative Institutes 11.432 NA14NES4320003 State of Maryland SDSU 66,538 0
Office for Coastal Management 11.473 0318.18.062467 Rutgers University SDSU 6,345 0
Total U.S. Department of Commerce Research and Development 322,199 0
U.S. Department of Defense
Collaborative Research and Development 12.114 GR09638 Desert Research Institute USD 1,480 0
Collaborative Research and Development 12.114 656.628O Desert Research Institute USD 6,276 0
Collaborative Research and Development 12.114 W912P618C0007 USD 70,782 0
Basic and Applied Scientific Research 12.300 N00174-18-1-0001 SDSMT 26,221 0
Basic and Applied Scientific Research 12.300 N00014-17-1-2965 SDSMT 81,283 0
Basic and Applied Scientific Research 12.300 N002531910003 SDSMT 13,392 0
Basic and Applied Scientific Research 12.300 N00174-19-1-0014 SDSMT 67,364 0
Basic and Applied Scientific Research 12.300 N00174-19-1-0027 SDSMT 164,282 0
Basic and Applied Scientific Research 12.300 N00014-18-1-2733 SDSMT 80,042 37,567
Basic and Applied Scientific Research 12.300 N00174-20-1-0007 SDSMT 5,513 0
Basic and Applied Scientific Research 12.300 W9126G-18-2-0061 SDSU 39,944 0
Defense Threat Reduction
Basic Scientific Research - Combating Weapons of Mass Destruction 12.351 HDTRA1-14-1-0050 Agency SDSMT 55,830 0
Pest Management and Vector Control Research 12.355 W911QY1910013 USD 206,530 60,000
Basic Scientific Research 12.431 W911NF-15-2-0034 HF Webster, LLC SDSMT 104,272 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 219
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Basic Scientific Research 12.431 W911NF1920329 HF Webster, LLC SDSMT 119,335 0
Academy of Applied
Basic, Applied, and Advanced Research in Science and Engineering 12.630 W911SR-15-2-0001 Sciences SDSMT 2,000 0
Basic, Applied, and Advanced Research in Science and Engineering 12.630 57CD0C03-C841-41 Wichita State University SDSMT 17,384 0
Air Force Defense Research Sciences Program 12.800 FA9550-19-1-0070 Arizona State University SDSMT 48,832 0
Air Force Defense Research Sciences Program 12.800 FA9550-19-1-0289 SDSMT 63,132 0
Information Security Grants 12.902 DSU 162,801 0
GenCyber Grants Program 12.903 DSU 222,524 0
GenCyber Grants Program 12.903 H98230-19-1-0046 SDSMT 48,827 0
CyberSecurity Core Curriculum - Cybersecurity Regional Resource Center 12.905 DSU 93,000 0
NSA Cyber Security IPA 12.UNKNOWN PO 519994 DSU 31,371 0
NSA IPA 12.UNKNOWN PO 975018 DSU 20,371 0
VENICEKISS 12.UNKNOWN H98230-16-C-0957 DSU 518,970 0
Basic and Applied Research 12.UNKNOWN SBIR N6833517C0556 VRC Metal Systems, LLC SDSMT 51,661 0
Basic and Applied Scientific Research 12.UNKNOWN N0002417C4020 VRC Metal Systems, LLC SDSMT 85,124 0
Basic and Applied Scientific Research 12.UNKNOWN W15QKN-18-C-0002 VRC Metal Systems, LLC SDSMT 149,738 0
Sustainment & Restoration
Basic and Applied Scientific Research 12.UNKNOWN W9128F19F0341 Services, LLC SDSMT 202,840 0
Basic and Applied Scientific Research 12.UNKNOWN W911NF1920329 HF Webster, LLC SDSMT 135,797 0
Basic and Applied Scientific Research 12.UNKNOWN N68335-19-C-0092 Lynntech SDSMT 17,815 0
Basic and Applied Scientific Research 12.UNKNOWN N68335-C-17-0016 NanoCoatings Inc. SDSMT 72,523 0
Netherlands Organization for
Applied Scientific Research
Basic and Applied Scientific Research 12.UNKNOWN W912HQ19C0067 TNO SDSMT 21,878 0
Basic Expeditionary Airfield Resources (BEAR) Energy Saving Technologies (BEAR-EST) 12.UNKNOWN FA4819-14-C-0010 Universal Technology Corp SDSMT 111,977 0
Small Business Innovation Research 12.UNKNOWN FA864920-P-0398 VRC Metal Systems, LLC SDSMT 7,500 0
Small Business Innovation Research 12.UNKNOWN 191-104 NanoCoatings Inc. SDSMT 45,000 0
Small Business Innovation Research 12.UNKNOWN FA8650-20-P-5166 VRC Metal Systems, LLC SDSMT 39,935 0
Small Business Innovation Research 12.UNKNOWN N6833519C0558 VRC Metal Systems, LLC SDSMT 11,538 0
Small Business Innovation Research 12.UNKNOWN N6833520C0458 VRC Metal Systems, LLC SDSMT 11,731 0
Small Business Innovation Research 12.UNKNOWN N6833519C0850 VRC Metal Systems, LLC SDSMT 45,958 0
Small Business Innovation Research 12.UNKNOWN SBIR N68335-18-C-0221 NanoCoatings Inc. SDSMT 11,126 0
Small Business Technology Transfer 12.UNKNOWN FA864919PA043 HF Webster, LLC SDSMT 7,500 0
Small Business Technology Transfer 12.UNKNOWN FA864920-P-0393 HF Webster, LLC SDSMT 7,500 0
Small Business Technology Transfer 12.UNKNOWN W912HZ19P0032 NanoCoatings Inc. SDSMT 50,000 0
Basic Scientific Research 12.UNKNOWN W9128F-16-P-0140 SDSMT 22,489 0
Advanced Technology
Development of Additive Manufacturing Technologies for Energetic Materials 12.UNKNOWN DOTC-16-01 INIT1199 International SDSMT 165,331 99,833
Basic Expeditionary Airfield Resources (BEAR) Energy Saving Technologies (BEAR-EST) 12.UNKNOWN FA4819-14-C-0004 SDSMT 26,493 0
Total U.S. Department of Defense Research and Development 3,573,212 197,400
U.S. Department of Interior
Rangeland Resource Management 15.237 L18AC00089 SDSMT 45,091 0
Idaho Department of Fish
Wildlife Restoration and Basic Hunter Education 15.611 F16AF00908 (FY17) and Game SDSU 3,596 0
Nebraska Department Of
Wildlife Restoration and Basic Hunter Education 15.611 F17AF01167 (W-136-R-1) Game, Fish And Parks SDSU 56,381 0
North Dakota Department of
Wildlife Restoration and Basic Hunter Education 15.611 F17AF01062 Game, Fish and Parks SDSU 89,623 0
Nebraska Department Of
Wildlife Restoration and Basic Hunter Education 15.611 F17AF00375 Game, Fish And Parks SDSU 151,247 0
North Carolina State
Multistate Conservation Grant 15.628 F19AP00094 University SDSU 4,562 0
State Wildlife Grants 15.634 Game, Fish and Parks 338,260 41,124
Migratory Bird Joint Ventures - Prairie Pothole Venture 15.637 Game, Fish and Parks 67,197 0
Nebraska Community
Migratory Bird Joint Ventures 15.637 F15AC01071 Foundation SDSU 122,702 0
Migratory Bird Joint Ventures 15.637 F15AC01071 SDSU 621 0
Endangered Species Conservation – Recovery Implementation Funds 15.657 F19AC00386 USD 58,367 0
Cooperative Ecosystem Studies Units 15.678 F17AC01252 SDSU 1,560 0
Assistance to State Water Resources Research Institutes 15.805 G15AP00170 SDSU 56,774 0
Assistance to State Water Resources Research Institutes 15.805 G16AP00083 SDSU 97,905 0
U.S. Geological Survey Research and Data Collection 15.808 G18AC00207 SDSMT 20,765 0
COVID-19 U.S. Geological Survey Research and Data Collection 15.808 G19AC00177 SDSU 3,179 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 220
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
U.S. Geological Survey Research and Data Collection 15.808 G14AC00370 SDSU 100,143 0
U.S. Geological Survey Research and Data Collection 15.808 G19AC00177 SDSU 170,787 0
U.S. Geological Survey Research and Data Collection - Develop eDNA Techniques 15.808 G16AC00130 USD 4,433 0
Cooperative Research Units 15.812 G16AC00261 SDSU 65,547 0
Cooperative Research Units 15.812 G17AC00336; RWO 118 SDSU 74,792 0
Cooperative Research Units 15.812 G17AC00337; RWO 116 SDSU 251,104 0
Cooperative Research Units 15.812 G17AC00338; RWO 117 SDSU 304,778 0
Cooperative Research and Training Programs – Resources of the National Park System 15.945 P19AC00164 SDSMT 30,236 0
Cooperative Research and Training Programs – Resources of the National Park System 15.945 P18AC00403; P1800478 SDSU 4,238 0
Cooperative Research and Training Programs – Resources of the National Park System 15.945 P17AC00057; P16AC00011 SDSU 32,509 0
Cooperative Research and Training Programs – Resources of the National Park System - Missouri
National Recreational River American Indian Traditional Cultural Property Survey & Inventory 15.945 21H088-01 Texas Tech University USD 870 0
Cooperative Research and Training Programs – Resources of the National Park System - Evaluating
Post-Flood Sandbar Succession and Species Biodiversity Related to Listed Species Habitat-MNRR 15.945 P18AC00040 USD 118,220 0
Cooperative Research and Training Programs – Resources of the National Park System - Expand
Missouri River Intern Program 15.945 P20AC00365 USD 3,277 0
Cooperative Research and Training Programs – Resources of the National Park System - Natural
Resources Intern Program-MNRR 15.945 P16AC00369 USD 14,721 0
Effect of Water Velocity and Temperature on Energy Reserves, Growth, Survival and Dispersal
Distance of Larval Pallid Sturgeon 15.UNKNOWN 17-UGPR-47 SDSU 1,789 0
Intergovernmental Personnel Agreement with USGS EROS -2016-2018 15.UNKNOWN 4500104003 SDSU 37,149 0
Total U.S. Department of Interior Research and Development 2,332,423 41,124
U.S. Department of Justice
National Institute of Justice Research, Evaluation, and Development Project Grants 16.560 2017-IJ-CX-0026 SDSMT 232,241 13,009
National Institute of Justice Research, Evaluation, and Development Project Grants 16.560 2018-DU-BX-0228 George Mason University SDSU 9,115 0
National Institute of Justice Research, Evaluation, and Development Project Grants 16.560 2018-R2-CX-0010 SDSU 47,355 0
Regents of the University of
National Institute of Justice Research, Evaluation, and Development Project Grants 16.560 2017-DN-BX-0148 California SDSU 104,371 50,871
Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program 16.589 2019-MU-GX-K014-B Avera Health USD 35,720 0
Innovations in Community-Based Crime Reduction 16.817 2019-BJ-BX-0002 City of Rapid City USD 12,864 0
National Sexual Assault Kit Initiative 16.833 2019-AK-BX-0033 The Network -Beadle County USD 9,298 0
Total U.S. Department of Justice Research and Development 450,964 63,880
U.S. Department of Labor
Mine Health and Safety Grants 17.600 MS-05082-18-55-46 SDSMT 29,369 0
Mine Health and Safety Grants 17.600 MS-04601-19-55-46 SDSMT 45,009 0
Total U.S. Department of Labor Research and Development 74,378 0
U.S. Department of Transportation
National Academy of
Highway Research and Development Program 20.200 NCHRP-200 Sciences SDSMT 2,243 0
National Academy of
Highway Research and Development Program 20.200 DTFH61-13-H-00024 Sciences SDSMT 40,607 14,239
HR 12-105/
Highway Research and Development Program 20.200 DTFH61-08-H-00035 Nevada Board of Regents SDSU 12,360 0
National Priority Safety Programs 20.616 2019-02-24 SDSMT 2,077 0
University Transportation Centers Program 20.701 26220120361 SDSMT 25,000 0
North Dakota State
University Transportation Centers Program 20.701 DTRT13-G-UT38 University SDSU 846 0
University Transportation Centers Program 20.701 69A3551947137 Washington State University SDSU 6,364 0
North Dakota State
University Transportation Centers Program 20.701 69A3551747108 University SDSU 241,933 0
Total U.S. Department of Transportation Research and Development 331,430 14,239
National Aeronautics and Space Administration
North Carolina State
Science 43.001 NNX16AL68G University SDSU 3,211 0
Science 43.001 80MSFC18M0047 Wichita State University SDSU 15,918 0
Board of Trustees of
Science 43.001 80NSSC19M0132 Michigan State University SDSU 42,758 0
Science 43.001 80NSSC1K0235 State of Maryland SDSU 60,062 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 221
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Science 43.001 80NSSC18K1423 SDSU 9,330 0
Science 43.001 80NSSSC18K0626 SDSU 173,362 0
Science 43.001 NNX15AP36A SDSU 331,083
Science 43.001 NNX15AP81G SDSU 157,204 90,517
Aeronautics 43.002 80NSSC20K0475 SDSU 31,025 0
Office of Stem Engagement (OSTEM) - Education 43.008 NNX16AI83A SDSMT 23,564 0
Office of Stem Engagement (OSTEM) - Education 43.008 80NSSC19M0080 SDSMT 63,163 0
Office of Stem Engagement (OSTEM) - Education 43.008 80NSSC19M0168 SDSMT 69,641 0
Office of Stem Engagement (OSTEM) - Education 43.008 80NSSC19M0063 SDSMT 51,612 0
Office of Stem Engagement (OSTEM) - Education 43.008 NNX15AM83A SDSMT 20,582 18,624
Office of Stem Engagement (OSTEM) - Education 43.008 NNX16AI84A SDSMT 27,290 0
Office of Stem Engagement (OSTEM) - Education 43.008 NNX16AQ98A SDSMT 35,369 25,350
Office of Stem Engagement (OSTEM) - Education 43.008 NNX15AK54A SDSMT 116,663 21,908
Office of Stem Engagement (OSTEM) - Education 43.008 80NSSC20M0040 SDSMT 164,056 2,600
Office of Stem Engagement (OSTEM) - Education 43.008 80NSSC18M0022 SDSMT 209,473 99,201
Office of Stem Engagement (OSTEM) - Education 43.008 NNX15AJ13H-03-22-2015 SDSMT 357,707 176,234
Space Technology 43.012 80NSSC19K0971 Wichita State University SDSU 16,027 0
Total National Aeronautics and Space Administration Research and Development 1,979,100 434,434
National Endowment for the Humanities
South Dakota Humanities
Promotion of the Humanities Federal/State Partnership 45.129 SO-253172-17 Council SDSMT 454 0
South Dakota Humanities
Promotion of the Humanities Federal/State Partnership 45.129 8119 Council SDSU 4,583 0
South Dakota Humanities
Promotion of the Humanities Federal/State Partnership 45.129 8121 Council SDSU 7,000 0
Total National Endowment for the Humanities Research and Development 12,037 0
National Science Foundation
Engineering 47.041 1842577 Colorado State University SDSMT 56,538 0
Engineering 47.041 1560421 SDSMT 5,075 0
Engineering 47.041 1806034 SDSMT 8,814 0
Engineering 47.041 2010696 SDSMT 16,896 0
Engineering 47.041 1454102 SDSMT 22,238 0
Engineering 47.041 1663646 SDSMT 47,488 0
Engineering 47.041 1947303 SDSMT 54,470 0
Engineering 47.041 1852336 SDSMT 69,932 0
Engineering 47.041 1652958 SDSMT 73,925 0
Engineering 47.041 1805550 SDSMT 137,061 0
Engineering 47.041 1711946 SDSMT 143,984
Engineering 47.041 1826314 SDSMT 185,122 0
Engineering 47.041 1840478 SDSMT 34,386 19,915
COVID-19 Engineering 47.041 1852177 SDSU 697 0
Engineering 47.041 1906755 SDSU 3,795 0
Engineering 47.041 EEC-1559958 SDSU 7,570 0
Engineering 47.041 1841502 SDSU 12,904 0
Engineering 47.041 1852177 SDSU 14,036 0
Engineering 47.041 ECCS-1608722 SDSU 23,875 0
Engineering 47.041 ECCS-1726964 SDSU 24,974 0
Engineering 47.041 CBET-1428992 SDSU 43,117
Engineering 47.041 1929814 SDSU 96,664 20,361
Engineering 47.041 IIP-1841518 USD 10,074 0
Engineering 47.041 EEC-1852306 USD 11,310 0
Engineering - Collaborative Research: REU Site: Security Printing and Anti-Counterfeiting Technology 47.041 EEC-1560323 USD 532 0
Engineering - I-Corps: Analytic Tool Discovery System for Interdisciplinary Data Analysis 47.041 IIP-1830157 USD 12,169 0
Mathematical and Physical Sciences 47.049 PHY-1560474 BHSU 2,779 0
Mathematical and Physical Sciences 47.049 PHY-1852575 BHSU 75,021
Mathematical and Physical Sciences 47.049 1913746 University of Notre Dame SDSMT 2,406 0
Mathematical and Physical Sciences 47.049 1913607 University of Wisconsin SDSMT 42,802 0
Mathematical and Physical Sciences 47.049 1506033 SDSMT 1,006 0
Mathematical and Physical Sciences 47.049 1948838 SDSMT 1,289
Mathematical and Physical Sciences 47.049 1914835 SDSMT 8,593 0
Mathematical and Physical Sciences 47.049 1615050 SDSMT 22,549 0
Mathematical and Physical Sciences 47.049 1806826 SDSMT 39,726 0
Mathematical and Physical Sciences 47.049 1757799 SDSMT 68,657 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 222
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Mathematical and Physical Sciences 47.049 1615197 SDSMT 92,062 0
Mathematical and Physical Sciences 47.049 1830066 SDSU 28,715 0
Mathematical and Physical Sciences 47.049 A004088508 University of Minnesota USD 5,095 0
Mathematical and Physical Sciences - NSF Center for Sustainable Polymers 47.049 A008060106 University of Minnesota USD 50,790 0
Mathematical and Physical Sciences 47.049 CHE-1800354 USD 127,200
Mathematical and Physical Sciences - Acquisition of a Dual-Source Single-Crystal X-ray Diffractometer 47.049 CHE-1919637 USD 229,992 0
Mathematical and Physical Sciences - CAREER: Biomimetic Metal-Organic Super-Containers 47.049 CHE-1352279 USD 48,460 0
Mathematical and Physical Sciences - Rational Design of Perfluoroalkylated N- and S-Containing
Heteroaromatics for Engineering High Performance Air-stable OFET Materials with Lamellar Pi-Pi
Stacked Structure 47.049 CHE-1355677 USD 67,611 0
Mathematical and Physical Sciences - REU Site: Undergraduate Research in Fluorine Chemistry 47.049 CHE-1757652 USD 28,167 0
Mathematical and Physical Sciences - Undoped NaI/CsI Directly Coupled to PMTs at 77 K for Rare-
Event Searches 47.049 PHY-1506036 USD 89,575
Mathematical and Physical Sciences - Size-Selective Electrochemical Sensing via Metal-Organic
Supercontainers 47.049 DMR-1709912 USD 24,046 3,038
Geosciences 47.050 OCE-1636653 Columbia University SDSMT 29,567 0
Geosciences 47.050 1636653 Columbia University SDSMT 40,000 0
Geosciences 47.050 1645466 SDSMT 22,529 0
Geosciences 47.050 1904142 SDSU 74,878 0
Geosciences 47.050 1443663 SDSU 13,883 0
Geosciences 47.050 PLR-1602440 SDSU 120,746 0
University of Alaska-
Geosciences - RAPID: Radiocarbon Dating of Bernik Levels at Walakpa, North Slope, Alaska 47.050 P0541978 Fairbanks USD 5,179 0
Computer and Information Science and Engineering 47.070 CNS 1738855 BHSU 147,889 0
Computer and Information Science and Engineering 47.070 DSU 70,218 0
Computer and Information Science and Engineering 47.070 DSU 95,080 0
Computer and Information Science and Engineering 47.070 1626579 SDSMT 64,950 0
Computer and Information Science and Engineering 47.070 1949921 Florida Atlantic University SDSU 730 0
Computer and Information Science and Engineering 47.070 1925681 University of Missouri SDSU 32,331
Computer and Information Science and Engineering 47.070 ACI-1559978 SDSU 17,430 0
Computer and Information Science and Engineering - BD Spokes: Digital Agriculture-Unmanned
Aircraft Systems 47.070 016460-4044103E Iowa State University USD 4,999 0
Computer and Information Science and Engineering - Great Plains Regional Cyber Team 47.070 C00066283-5 University of Missouri USD 39,042
Computer and Information Science and Engineering 47.070 OAC-1827227 USD 503,349
Computer and Information Science and Engineering - Biology-guided neural networks for discovering
phenotypic traits 47.070 OAC-1940340 USD 824 0
Computer and Information Science and Engineering - CC Storage: The South Dakota Data Store, a
Modular, Affordable Platform to Enable Data-Intensive Research and Education 47.070 ACI-1659282 USD 97,863 0
Computer and Information Science and Engineering - MRI: Acquisition of the Lawrence Supercomputer
to Advance Multidisciplinary Research in South Dakota 47.070 ACI-1626516 USD 24,223 0
Biological Sciences 47.074 1555725 BHSU 44,760 0
University of Kansas Center
Biological Sciences 47.074 DDBI-1602067 for Research SDSMT 52,965 0
Biological Sciences 47.074 DEB-1342721 SDSMT 14,077 0
Biological Sciences 47.074 1442600 SDSMT 52,916 0
Biological Sciences 47.074 IOS-1340050 Carnegie Institution SDSU 26,597 0
Biological Sciences 47.074 1922542 SDSU 39,437 0
Biological Sciences 47.074 DBI-1532189 SDSU 75,990 0
Biological Sciences 47.074 IOS-1350189 SDSU 233,449 0
Biological Sciences 47.074 1546869 Saint Louis University SDSU 153,660 70,524
Biological Sciences 47.074 DEB-1735679 SDSU 34,958 17,432
Biological Sciences 47.074 DEB-1837233 USD 56,787 0
Biological Sciences - Collaborative Research: ABI Innovation: Enabling Machine-Actionable Semantics
for Comparative Analyses of Trait Evolution 47.074 DBI-1661529 USD 94,381 0
Biological Sciences - REU Site: Sustainable RIVER (Remediating InVasives to Encourage Resilience) 47.074 DBI-1560048 USD 76,063 0
Social, Behavioral, and Economic Sciences - Land-Surface Processes, Dust Sources, and Particulate
Fluxes of the 1930s Dust Bowl Drought in the US Great Plains, USA 47.075 32110204-01 Baylor University USD 8,295 0
Social, Behavioral, and Economic Sciences - Long-Term Human Reponses to Ecological Instability 47.075 BCS-1916770 USD 7,144 0
Education and Human Resources - Research on Learning in Formal and Informal Settings "Expanding
Pathways into Computer Science" 47.076 DRL-1441080 BHSU 33,531 0
Education and Human Resources - NRT 47.076 DSU 64,992 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 223
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Education and Human Resources - SFS Cyber Corp General Renewal 47.076 DSU 1,251,537 0
Education and Human Resources - SFS Cyber Corp Sch Renewal 47.076 DSU 338,714 0
Education and Human Resources 47.076 DUE-1260101 SDSMT 16,094 0
Education and Human Resources 47.076 1712195 SDSMT 24,849 0
Education and Human Resources 47.076 1525831 SDSMT 30,048 0
Education and Human Resources 47.076 1642050 SDSMT 78,826 0
Education and Human Resources 47.076 1564837 SDSMT 137,886 0
Education and Human Resources 47.076 1828462 SDSMT 224,224 0
Education and Human Resources 47.076 LCDC1665521; NSF 14-577 Lewis-Clark State College SDSU 10,542 0
Education and Human Resources 47.076 1828492 SDSU 37,485
Education and Human Resources 47.076 1930415 SDSU 40,990 0
Education and Human Resources 47.076 HRD-1642037 SDSU 46,245 0
Education and Human Resources 47.076 DUE-1439789 SDSU 73,414 0
Education and Human Resources 47.076 HRD-1463993 SDSU 167,246 0
Education and Human Resources 47.076 DGE-1828288 USD 48,654 0
Education and Human Resources - Graduate Research Fellowship Program 47.076 DGE-1939269 USD 38,160 0
Education and Human Resources - NRT-UtB: University of South Dakota Neuroscience and
Nanotechnology Network 47.076 DGE-1633213 USD 670,852 0
Office of International Science and Engineering 47.079 IIA-1355423 SDSU 1,046,907 218,328
Office of International Science and Engineering 47.079 PHY-1902577 USD 24,674 0
Office of International Science and Engineering 47.079 PHY-1812356 USD 135,111 0
Office of International Science and Engineering - PIRE: Advanced Germanium Detectors and
Technologies for Underground Physics 47.079 OISE-1743790 USD 643,593 382,067
Integrative Activities 47.083 Board of Regents 1,219,834 84,490
Integrative Activities 47.083 1833069 SDSMT 22,864 0
Integrative Activities 47.083 1920954 SDSMT 333,436 92,421
Integrative Activities 47.083 1736255 SDSMT 1,336,283 699,823
University of Louisiana at
Integrative Activities 47.083 OIA-1920858 Lafayette SDSU 2,874 0
University of Alaska-
Integrative Activities 47.083 1740991 Fairbanks SDSU 3,500 0
Integrative Activities 47.083 1833005 SDSU 31,149 0
Integrative Activities - R11 Track-2 FEC: Sustainable Socio-economic, Ecological, and Technological
Scenarios 47.083 G137-17-W6274 Montana State University USD 368,193 0
Integrative Activities 47.083 OIA-1833095 USD 41,151 0
Integrative Activities - R11 Track-4: Development of High-purity Ge Detector Technology with LBNL for
Dark Matter and Neutrino Physics 47.083 OIA-1738695 USD 26,151 0
Intergovernmental Personnel Act 47.UNKNOWN DMR-1936490 SDSMT 193,481 0
Total National Science Foundation Research and Development 13,314,866 1,608,399
U.S. Department of Veterans Affairs
Research and Development - Investigate the Impact of Blast Exposure on Recent War Veterans with
Auditory Complaints 64.054 VA263-17-Q-0530 USD 1,098 0
Total U.S. Department of Veterans Affairs Research and Development 1,098 0
U.S. Environmental Protection Agency
South Dakota Discovery
Nonpoint Source Implementation Grants 66.460 99818517 Center & Aquarium SDSU 2,434 0
Office of Research and Development Consolidated Research/Training/Fellowships 66.511 83617401 Colorado School of Mines SDSMT 53,231 0
Total U.S. Environmental Protection Agency Research and Development 55,665 0
U.S. Department of Energy
Office of Science Financial Assistance Program 81.049 DE-SC0017229 VRC Metal Systems, LLC SDSMT 142,903 0
Office of Science Financial Assistance Program 81.049 DE-SC0017209/0003 Olympic Research SDSMT 17,822 0
Office of Science Financial Assistance Program 81.049 DE-SC0019430 SDSMT 265,229 0
Office of Science Financial Assistance Program 81.049 DE-SC0014223 SDSMT 402,693 0
Office of Science Financial Assistance Program 81.049 DE-SC0014156 University of Texas at Austin SDSU 21,960 0
University of Alaska-
Office of Science Financial Assistance Program 81.049 DE-SC0020281 Fairbanks SDSU 86,211 0
Office of Science Financial Assistance Program 81.049 DE-SC0015657 USD 88,730
Office of Science Financial Assistance Program 81.049 DE-SC0019463 USD 160,832 0
SLAC National Accelerator
Renewable Energy Research and Development 81.087 DE-AC02-76SF00515 Laboratory SDSMT 47,505 0
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 224
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Renewable Energy Research and Development 81.087 DE-EE0008252 SDSMT 294,225 106,839
Renewable Energy Research and Development 81.087 DEEE0008521 University of Illinois SDSU 48,392 0
Renewable Energy Research and Development - Develop the Detector Configuration and Data Quality Leland Stanford, Jr.
Monitoring Software for the SuperCDMS-SNOLAB Experiment and Performing DAQ Integration Tests 81.087 169968 University USD 8,508 0
National Nuclear Security Administration - Design, install, assess and monitor a clean room air Lawrence Livermore
environment for the GeIV counting facility 81.123 B634625 National Laboratory USD 13,626 0
Lawrence Berkeley National
Basic and Applied Scientific Research 81.UNKNOWN DE-AC02-05CH11231 Laboratory SDSMT 7,307 0
Basic and Applied Scientific Research 81.UNKNOWN DE-AC02-07CH11359 Fermi National Laboratory SDSMT 5,341
Lawrence Berkeley National
Basic Research and Development 81.UNKNOWN DE-AC02-05CH11231 Laboratory SDSMT 23,596 0
Basic Research and Development 81.UNKNOWN DE-AC05-00OR22725 UT Battelle, LLC SDSMT 317,182 0
Lawrence Berkeley National
Basic Scientific Research 81.UNKNOWN DE-AC02-05CH11231 Laboratory SDSMT 20,034 0
Lawrence Berkeley National
Office of Science Financial Assistance Program 81.UNKNOWN DE-AC02-05CH11231 Laboratory SDSMT 50,458 0
Alliance for Sustainable
Renewable Energy Research and Development 81.UNKNOWN DE-AC36-08G028308 Energy, LLC SDSMT 47,156
Small Business Innovation Research 81.UNKNOWN DE-SC0018577 VRC Metal Systems, LLC SDSMT 22,844 0
Small Business Innovation Research 81.UNKNOWN DE-SC0020021 VRC Metal Systems, LLC SDSMT 30,000 0
Unclassified Research and Development 81.UNKNOWN DE-AC02-07CH11359 Fermi National Laboratory SDSMT 410 0
Total U.S. Department of Energy Research and Development 2,122,964 106,839
U.S. Department of Health and Human Services
COVID-19 Food and Drug Administration Research 93.103 U18FD006558 SDSU 3,969 0
Food and Drug Administration Research 93.103 U18FD005010 SDSU 5,450 0
Food and Drug Administration Research 93.103 U18FD006181 SDSU 43,181 0
Food and Drug Administration Research 93.103 U18FD006558 SDSU 52,887 0
The Regents of the
Environmental Health 93.113 R01ES028212 University of California SDSU 47,381 0
Regents of University of
Environmental Health 93.113 U54ES027698 Colorado SDSU 50,445 0
Regents of University of
Environmental Health 93.113 U54ES027698 Colorado SDSU 77,675 0
Mental Health Research Grants - Amygdalar Orexin Modulation of Affective Disorders 93.242 R15MH104485 USD 53,196 0
Mental Health Research Grants - Characterization of Trophic Factor Induced Antidepressant Action 93.242 R01MH106640 USD 370,811 0
Occupational Safety and Health Program 93.262 U54OH008085 Colorado State University SDSU 5,918 0
Occupational Safety and Health Program 93.262 5 U54OH008085-16-00 Colorado State University SDSU 15,132 0
Alcohol Research Programs - Alcohol and Implicit Process in Sexual Risk Behavior in MSM 93.273 27189-04107-S02 Syracuse University USD 58,972 0
Alcohol Research Programs 93.273 R01AA027206 USD 177,859 0
Drug Abuse and Addiction Research Programs - Serotonergic Changes in the Frontal Cortex During
Methamphetamine Reinstatement 93.279 R00DA036012 USD 146,814 0
Drug Abuse and Addiction Research Programs - Summer Program for Undergraduate Research in
Addiction 93.279 1R25DA033674 USD 86,414 0
Discovery and Applied Research for Technological Innovations to Improve Human Health 93.286 R03EB028869 SDSMT 1,567 0
Trans-NIH Research Support 93.310 OT2OD026663 USD 16,638 14,478
The General Hospital
Cancer Cause and Prevention Research 93.393 R01CA240080 Corporation SDSU 31,113 0
Cancer Cause and Prevention Research 93.393 R01CA201112 Colorado State University SDSU 141,664 0
The General Hospital
COVID-19 Cancer Cause and Prevention Research 93.393 R01CA240080 Corporation SDSU 133 0
The Nebraska Board of
Regents/University of
Cancer Detection and Diagnosis Research 93.394 1R21CA212500-01 Nebraska SDSU 2,615 0
Cancer Biology Research 93.396 R03CA223935 USD 57,815 0
Cardiovascular Diseases Research 93.837 R01HL147105 USD 217,426 0
Cardiovascular Diseases Research - Cardiac Sympathetic Afferent Reflex Control of Venous Function 93.837 R01HL136741 USD 317,029 0
Cardiovascular Diseases Research - Mechanical Response and Cytoskeletal Rearrangement Following
Interrupted Cholesterol Metabolism in Vascular Smooth Muscle Cell 93.837 R15HL147214 USD 9,916
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 225
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Cardiovascular Diseases Research - Molecular Pathogenesis of Protein Surplus Cardiomyopathy 93.837 R01HL072166 USD 34,396 0
Cardiovascular Diseases Research - The COP9 Signalosome in the Heart 93.837 R01HL085629 USD 373,605 0
Cardiovascular Diseases Research - The NRF2-p62 Axis in the Cross-Talk between Proteasomal and
Lysosomal Degradation 93.837 R01HL131667 USD 299,998 173,063
Lung Diseases Research 93.838 5R01HL122154 University of North Carolina SDSU 19,694 0
Lung Diseases Research - Hyperoxic Modulation of Thioredoxin Signaling 93.838 SR-2018-06 Sanford Research USD 4,539 0
Diabetes, Digestive and Kidney Diseases Extramural Research - Novel Target Mechanism to Reduce University of Nebraska-
Sodium Retention in Chronic Health Failure 93.847 34-5170-2096-001 Medical Center USD 189,128 0
Extramural Research Programs in the Neurosciences and Neurological Disorders - Modulating Low- University of California, San
Frequency Cortical Population Dynamics to Augment Motor Function After Stroke 93.853 12099sc Francisco USD 23,333 0
Extramural Research Programs in the Neurosciences and Neurological Disorders 93.853 F30NS106788 USD 36,663 0
Extramural Research Programs in the Neurosciences and Neurological Disorders - Endovanilloid-
Mediated Modulation and its Role in Habituation and Sensitization 93.853 R01NS092716 USD 276,311 0
Extramural Research Programs in the Neurosciences and Neurological Disorders - Role of Ubiquilin in
Ischemic Stroke 93.853 R01NS088084 USD 258,319 0
Extramural Research Programs in the Neurosciences and Neurological Disorders - Rehabilitation
Mechanisms of Hand Motor Recovery After Sensorimotor Cortex Injury 93.853 R01NS097450 USD 257,646 71,749
North Dakota State
Allergy and Infectious Diseases Research 93.855 1R21AI37963-01 University SDSU 6,617 0
Allergy and Infectious Diseases Research 93.855 R21AI21906 Kansas State University SDSU 13,934 0
Allergy and Infectious Diseases Research 93.855 R21AI128558 SDSU 72,437 0
Allergy and Infectious Diseases Research 93.855 R01AI141889 SDSU 432,592 161,893
Allergy and Infectious Diseases Research 93.855 R03AI142593 USD 61,153
Allergy and Infectious Diseases Research 93.855 R21AI140037 USD 210,945
Allergy and Infectious Diseases Research - Immunotherapeutic Intervention of Influenza-S. Pyogenes
Coinfections 93.855 R21AI115087 USD 816 0
The Regents of the
Biomedical Research and Research Training 93.859 R35GM131720 University of Michigan SDSU 17,013 0
Biomedical Research and Research Training 93.859 IR41GM132683 DFH Pharma Inc SDSU 57,078 0
Biomedical Research and Research Training 93.859 R15GM134502 SDSU 20,031 0
Biomedical Research and Research Training 93.859 1R15GM116040-01A1 SDSU 93,848
Biomedical Research and Research Training 93.859 R15GM131263 SDSU 147,824
COVID-19 Biomedical Research and Research Training 93.859 R15GM134502 SDSU 31
University of Nebraska-
Biomedical Research and Research Training 93.859 34-5250-2005-863 Medical Ctr USD 1,164 0
University of Nebraska-
Biomedical Research and Research Training 93.859 34-5250-2005-793 Medical Ctr USD 15,846 0
BBC Entrepreneurial
Biomedical Research and Research Training 93.859 1UT2GM130175 Training & Consulting USD 36,609
Biomedical Research and Research Training 93.859 UND10728 University of North Dakota USD 332,646 0
University of Nebraska-
Biomedical Research and Research Training - Dakota Cancer Collaborative on Translational Activity 93.859 34-5250-2016-0101 Medical Ctr USD 15,350 0
Biomedical Research and Research Training - Dakota Cancer Collaborative on Translational Activity 93.859 UND0024341-S1 University of North Dakota USD 53,773 0
Biomedical Research and Research Training - Dakota Cancer Collaborative on Translational Activity 93.859 UND0024341-S3 University of North Dakota USD 32,227 0
University of Nebraska-
Biomedical Research and Research Training - Great Plains IDeA-CTR: Baugh 93.859 34-5250-2016-717 Medical Ctr USD 3,366 0
University of Nebraska-
Biomedical Research and Research Training 93.859 34-5250-2005-523 Medical Ctr USD 2,593 2,058
Biomedical Research and Research Training - AKT/mTOR Pathway in Obesity and Colorectal Cancer 93.859 UND0024341-S2 University of North Dakota USD 63,098 553
Biomedical Research and Research Training - Great Plains IDeA-CTR: Dirty Little Secrets: Wastewater University of Nebraska-
Epidemiology Use to Determine Community Drug Use 93.859 34-5250-2005-752 Medical Ctr USD 53,710 39,965
Biomedical Research and Research Training - Biomedical Technology -BRIN (Biomedical Research
Infrastructure Network) for SD 93.859 P20GM103443 USD 3,229,737 1,249,503
Child Health and Human Development Extramural Research 93.865 R03HD099412 SDSU 44,494 0
Antimicrobial Resistance Surveillance in Retail Food Specimens 93.876 U01FD005787 SDSU 170,779 0
Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care
Provider Quality Improvement 93.912 P10RH32094 Avera Sacred Heart Hospital SDSU 5,988 0
CDC's Collaboration with Academia to Strengthen Public Health 93.967 20IPA2008334DPG USD 24,701 0
Numerical Modeling of Gas Emissions and Cave Ventilation in Block Caving Mines 93.UNKNOWN 200-2014-59613 SDSMT 161,429 0
Safe Integrated Engineering in Mining 93.UNKNOWN 75D30119C06090 SDSMT 144,064 23,927
Total U.S. Department of Health and Human Services Research and Development 9,291,545 1,737,189
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 226
STATE OF SOUTH DAKOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
Amount Passed
Federal/Pass-Through Through to Non-State
Federal Agency/Program Title/Cluster CFDA # Entity Identifying Number Pass-Through Entity State Agency Total Expenditures Agencies
Research and Development Cluster (continued)
Agency for International Development
RC102095; Board of Trustees of
USAID Foreign Assistance for Programs Overseas 98.001 RC102095BHEARD-MALI Michigan State University SDSU 1,590 0
National Academy of
USAID Foreign Assistance for Programs Overseas 98.001 AID-263-A-15-00002 Sciences SDSU 14,729 0
Total Agency for International Development Research and Development 16,319 0
Research and Development Cluster Total $ 45,369,866 $ 8,078,008
Student Financial Assistance
U.S. Department of Education
P007A203840; BHSU/DSU/NSU/SDSMT/
Federal Supplemental Educational Opportunity Grants 84.007 P007A193840 SDSU/USD 1,933,247 0
P033A183840; BHSU/DSU/NSU/SDSMT/
Federal Work-Study Program 84.033 P033A193840 SDSU/USD 1,960,149 0
BHSU/DSU/NSU/SDSMT/
Federal Perkins Loan Program - Federal Capital Contributions (Notes 3D and 3F) 84.038 SDSU/USD 16,448,442 0
P063P192214;
P063P182214; BHSU/DSU/NSU/SDSMT/
Federal Pell Grant Program 84.063 P063P202214 SDSU/USD 27,772,471 0
P268K192214;
P268K212214; BHSU/DSU/NSU/SDSMT/
Federal Direct Student Loans (Note 3H) 84.268 P268K202214 SDSU/USD 144,370,400 0
BHSU/DSU/NSU/SDSU/
Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) 84.379 P379T202214 USD 387,243 0
Total U.S. Department of Education Student Financial Assistance 192,871,952 0
U.S. Department of Health and Human Services
Nurse Faculty Loan Program (NFLP) (Note 3F) 93.264 P379T092217 SDSU 879,716 0
Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students
(Note 3F) 93.342 P379T092219 SDSU/USD 9,325,183 0
Nursing Student Loans (Note 3F) 93.364 SDSU/USD 2,249,971 0
Total U.S. Department of Health and Human Services Student Financial Assistance 12,454,870 0
Student Financial Assistance Cluster Total $ 205,326,822 $
LEGEND
BHSU = Black Hills State University
DSU = Dakota State University
NSU = Northern State University
SDSMT = South Dakota School of Mines and Technology
SDSU = South Dakota State University
USD = University of South Dakota
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 227
STATE OF SOUTH DAKOTA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2020
NOTE 1: Purpose of the Schedule
The Schedule of Expenditures of Federal Awards (Schedule) is a supplementary schedule to the
State of South Dakota’s (the State) basic financial statements and is presented for purposes of
additional analysis. The Schedule is required by Title 2 U.S. Code of Federal Regulations Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance).
NOTE 2: Significant Accounting Policies
A. Reporting Entity - The accompanying Schedule includes all federal financial assistance
programs administered by the State for the fiscal year ended June 30, 2020, except for
programs administered by the South Dakota Housing Development Authority, which has
elected to have its own Single Audit a described in Note 3P.
B. Basis of Presentation - The information in the Schedule is presented in accordance with
Uniform Guidance.
1. Federal Awards - Federal financial assistance is defined in the Uniform Guidance as
assistance that non-federal entities receive or administer in the form of grants, cooperative
agreements, non-cash contributions or donations of property, direct appropriations, food
commodities, loans, loan guarantees, interest subsidies, insurance, and other financial
assistance, but does not include amounts received as reimbursement for services
rendered to individuals for Medicare and Medicaid.
The Catalog of Federal Domestic Assistance (CFDA) is a government-wide compendium
of individual federal programs. Each program included in the catalog is assigned a five-
digit program identification number (CFDA Number) and program name. The
accompanying schedule and footnotes reflect the program names and CFDA numbers
assigned by the https://beta.sam.gov website. Federal financial assistance programs and
contracts which have not been assigned a CFDA number or, where management has
been unable to determine the CFDA number, are identified with a two-digit number that
identifies the federal awarding agency followed by ‘UNKNOWN’.
2. Clusters of Programs – Closely related programs with different CFDA numbers which
share common compliance requirements are considered clusters of programs, as
determined by the Office of Management and Budget (OMB). Most clusters of programs
are contained within a single federal awarding agency and are reported on the Schedule
under the respective awarding agency. Two clusters, the Research and Development
Cluster and the Student Financial Assistance Cluster, have awards from two or more
federal agencies. These clusters are reported on the Schedule in total under each federal
awarding agency, with the detail for each individual award being shown by federal
awarding agency at the bottom of the Schedule.
3. Pandemic Funding – Program expenditures of funds awarded in response to the
Coronavirus Pandemic are identified with “COVID-19” in the Program Title.
228
4. Type A and Type B Programs - The Uniform Guidance establishes the levels of
expenditures or expenses to be used in defining Type A and Type B federal financial
assistance programs. Type A programs for the State are those which equaled or exceeded
$8,600,000 in expenditures/disbursements/issuances for the fiscal year ended June 30,
2020. Type B programs for the State are those which had less than $8,600,000 in
expenditures/disbursements/issuances for the fiscal year ended June 30, 2020.
C. Basis of Accounting - The information presented in the Schedule is presented on the cash
basis of accounting, which is consistent with other federal grant reports. The State’s basic
financial statements are reported on the modified accrual or the accrual basis of accounting
and, therefore, the Schedule's data may not be directly traceable to the basic financial
statements.
The Schedule includes a portion of costs associated with general activities which are allocated
to federal financial assistance programs under negotiated formulas commonly referred to as
indirect cost rates. Several of South Dakota’s state agencies have negotiated indirect cost
rates or other approved cost allocation plans for the purpose of claiming indirect costs, while
others do not. The Board of Regents Central Office claimed the 10 percent de minimis cost
rate during fiscal year 2020 for CFDA #47.083 Integrative Activities. This was the only state
agency that claimed the de minimis cost rate during fiscal year 2020.
D. Expenditures and Expenses - All federal expenditures included in the Schedule are
assistance received directly from the federal government or indirectly through entities from
outside the State. When monies are received by one state grantee agency and re-distributed
(expended) to another state grantee agency (i.e. a subaward of funds by the primary recipient
state grantee agency to a subrecipient state grantee agency), the federal financial assistance
is reflected in the primary receiving/expending state grantee agency's accounts. This is to
avoid duplication and the overstatement of the aggregate level of federal financial assistance
expended by the State.
NOTE 3: Other
A. Commodities administered through distributing agencies totaling $6,945,851 ($3,152,581
under CFDA #10.555, $9,083 under CFDA #10.559, and $3,784,187 under CFDA #10.569)
are included in the definition of expenditures of federal awards for the purpose of the
accompanying Schedule. Commodities are valued at the last purchase price.
B. As of June 30, 2020, donated federal surplus property (CFDA #39.003) reported on the
Schedule totaled $1,902,308, which represents 23.3% of the original acquisition cost of the
federal surplus property received by the State. This percentage approximates the fair market
value of the property at the time of distribution as determined by the General Services
Administration.
C. The amounts reported as federal expenditures for CFDA #64.014 and 64.015 represent cash
received. Federal reimbursements are based on approved rates for services provided, rather
than reimbursement for specific expenditures.
D. Perkins Loan amounts (CFDA #84.038) include federal, state, and program revenues. The
exact portion associated with federal dollars cannot be readily determined.
229
E. Electronic benefits under the Supplemental Nutrition Assistance Program (SNAP) (CFDA
#10.551) totaled $128,347,246 and are included in the federal financial assistance reported
on the Schedule.
F. Federally funded loan programs had the following current fiscal year disbursement and
outstanding loan balances at year end:
Current Year Outstanding
CFDA Administrative Loan Loan Balance
Number Grant Program Expense Disbursement June 30, 2020
66.458 Clean Water State Revolving $ 440,222 $46,137,875 $298,450,817
Fund
66.468 Drinking Water State Revolving 914,115 27,792,553 189,361,125
Fund
84.038 Perkins Loans Funds 102,614 16,345,828
93.264 Nurse Faculty Loan Program 123,254 879,716
93.342 Health Professions Student 1,752,442 9,325,183
Loans/ Loans For
Disadvantaged Students
93.364 Nursing Student Loans 643,700 2,249,971
G. The loan balances provided for the Clean Water State Revolving Fund (CFDA #66.458) and
the Drinking Water State Revolving Fund (CFDA #66.468) consist of federal, state, and
program revenues, the exact percentage of which is not readily determinable. The same
requirements are followed for all loans regardless of the funding source utilized.
H. Loans disbursed under the Federal Direct Student Loans program (CFDA #84.268) and
issued to parents of eligible students or eligible students attending state universities had the
following values:
Direct Subsidized Loans $ 40,670,965
Direct Unsubsidized Loans 81,105,054
Direct PLUS & G PLUS Program Loans 22,594,381
I. During the fiscal year ended June 30, 2020, the South Dakota Department of Health (DOH)
received $3,443,218 in cash rebates from infant formula manufacturers on sales of formula to
participants in the WIC Program (CFDA #10.557). Rebate contracts with infant formula
manufacturers are authorized by 7 CFR 246.16(a) as a cost containment measure. Rebates
represent a reduction of expenditures previously incurred for WIC food. The rebate contract
allowed the DOH to serve 4,805 more persons during fiscal year 2020.
230
J. The South Dakota Department of Transportation (SDDOT) acts as a channeling state for the
various Airport Improvement Program grants (CFDA #20.106) funded through the Federal
Aviation Administration (FAA). The majority of these grants are between the FAA and cities,
counties, and airport authorities that carry out the projects. Total reimbursements processed
in fiscal year 2020 for channeling grants amounted to $21,695,169. These monies are not
reflected on the Schedule as expenditures of federal awards of the State. The $1,011,712
reported on the Schedule under CFDA #20.106 was expended under a separate agreement
between the SDDOT and the FAA in which the SDDOT is considered the grant recipient and
directly funds multiple small projects at these airports.
K. The amount included as of June 30, 2020 on the unemployment insurance section of the
Schedule (CFDA #17.225) includes the amount of federal unemployment insurance, the
amount of the State’s expenditure for unemployment insurance benefits, the amount of
administrative expense, and the amount of Alternative Trade Adjustment Assistance as
required by the U.S. Department of Labor and the Inspector General. The amounts are
$171,844,839, $69,498,042, $8,828,900, and $73,099 respectively.
L. The South Dakota Governor’s Office of Economic Development, through the South Dakota
Value Added Finance Authority (VAFA), participates in the United States Department of
Agriculture Rural Business Cooperative Service (RBCS) Intermediary Relending Program
(IRP). As of June 30, 2020, VAFA had drawn down $2,179,030 of RBCS loan funds and had
disbursed all these RBCS funds. The total value of loans issued as of June 30, 2020 was
$4,201,600, with the total remaining loans outstanding as of June 30, 2020 equaling
$1,431,720.
M. Department of Energy (DOE) programs were funded in part by Petroleum Violation Escrow
(PVE) funds which represent the State’s share of settlement proceeds in various lawsuits
between the Federal Government and oil producers. During fiscal year 2020, the South
Dakota Department of Tourism had $27,245 in expenditures from the trust fund in support of
DOE programs and received $1,072,429 in loan payments. These expenditures are not
included on the Schedule.
N. The amount of expenditures reported for the Child Support Enforcement program (CFDA
#93.563) was not reduced by $3,587,560 which is the federal share of prior quarters’ Title IV-
A collections retained to fund the Child Support Enforcement program during fiscal year 2020.
O. (Unaudited) During fiscal year ended June 30, 2020, the State of South Dakota received
inventory from the federal government to assist in the fight against the global COVID-19
pandemic. The Department of Health received $2,668,694 and used $1,574,818, the
Department of Corrections received $12,552 and used $502, and the Department of Veteran’s
Affairs received $1,423 and has yet to use the inventory received. Because donated PPE has
no bearing on the single audit, this footnote was not audited as part of the Single Audit.
P. The South Dakota Housing Development Authority (SDHDA) is a discretely presented
component unit of the State. The SDHDA has chosen to have its own separate Single Audit
performed and has reported its federal expenditures, including loan information, in its own
SEFA. Copies of the SDHDA Single Audit are available from the Department of Legislative
Audit, 427 South Chapelle, c/o 500 East Capitol, by calling (605) 773-3595, or online at
http://legislativeaudit.sd.gov/reports/reports.aspx.
231
232
AUDITOR'S REPORTS ON
INTERNAL CONTROL AND
COMPLIANCE
AUDITOR'S REPORTS ON
INTERNAL CONTROL AND
COMPLIANCE
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Kristi Noem
Governor of South Dakota
and
Members of the Legislature
State of South Dakota
We have audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the State of South Dakota (State) as of and for the year ended June 30, 2020, and the related
notes to the financial statements, which collectively comprise the State’s basic financial statements and
have issued our report thereon dated December 31, 2020. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. The financial statements of the discretely presented component units (foundations) of Higher
Education were not audited in accordance with Government Auditing Standards, and accordingly, this
report does not include reporting on internal control over financial reporting or instances of reportable
noncompliance associated with the discretely presented component units (foundations) of Higher
Education. Our report includes a reference to other auditors who audited the financial statements of the
Unemployment Insurance Fund, the South Dakota Retirement System, the South Dakota Housing
Development Authority, the South Dakota Ellsworth Development Authority and foundations of Higher
Education as described in our report on the State’s financial statements. Except for the discretely presented
component units (foundations) of Higher Education, this report includes our consideration of the results of
the other auditors’ testing of internal control over financial reporting and compliance and other matters that
are reported on separately by those other auditors. However, this report, insofar as it relates to the results
of the other auditors, is based solely on the reports of the other auditors.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the State’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the State’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the State’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have
233
not been identified. However, as described in the accompanying Schedule of Findings and Questioned
Costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and
significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. We and the other
auditors consider the deficiencies described in the accompanying Schedule of Findings and Questioned
Costs as items 2020-002, 2020-003 and 2020-004 to be material weaknesses.
We performed additional procedures which were completed April 22, 2021, in order to issue our opinion on
the Supplementary Schedule of Expenditures of Federal Awards. As a result of these procedures, we have
identified and consider the deficiency described in the accompanying Schedule of Findings and Questioned
Costs as item 2020-007 to be a material weakness.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance. We
consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as
finding number 2020-001, to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the State’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests and
those of other auditors disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
State’s Response to Findings
The State’s response to the findings identified in our audit is described in the accompanying “Schedule of
Findings and Questioned Costs”. The State’s response was not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the State’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose. As required by South Dakota Codified Law 4-11-
11, this report is a matter of public record and its distribution is not limited.
Russell A. Olson
Auditor General
December 31, 2020, except for additional procedures performed on the Supplementary Schedule of
Expenditures of Federal Awards as to which the date is April 22, 2021.
234
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM
GUIDANCE
The Honorable Kristi Noem
Governor of South Dakota
and
Members of the Legislature
State of South Dakota
Report on Compliance for Each Major Federal Program
We have audited the State of South Dakota’s (State’s) compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that
could have a direct and material effect on each of the State’s major federal programs for the year ended
June 30, 2020. The State’s major federal programs are identified in the “Summary of Auditor’s Results”
section of the accompanying “Schedule of Findings and Questioned Costs.”
The State’s basic financial statements include the operation of the South Dakota Housing Development
Authority (discretely presented component unit), which expended $34,378,700 in federal awards which are
not included on the schedule of expenditures of federal awards for the year ended June 30, 2020. Our
audit, described below, did not include the operations of the South Dakota Housing Development Authority
because the component unit has a separately issued audit in accordance with the audit requirements of
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance).
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the State’s major federal programs
based on our audit of the types of compliance requirements referred to above.
As stated in our report on the basic financial statements, we did not audit the financial statements of the
Unemployment Insurance Fund, the South Dakota Retirement System, the South Dakota Housing
Development Authority, the South Dakota Ellsworth Development Authority and foundations of Higher
Education. Those statements were audited by other auditors whose reports, including reports on
compliance and internal control over compliance, have been furnished to us. Our report on the basic
financial statements and this report, insofar as it relates to the amounts included for these entities and their
235
compliance and internal control over compliance, excluding the South Dakota Housing and Development
Authority, are based solely on the reports of the other auditors.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of the
Uniform Guidance. Those standards and the Uniform Guidance require that we plan and perform the audit
to obtain reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An
audit includes examining, on a test basis, evidence about the State’s compliance with those requirements
and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit and the reports of other auditors provide a reasonable basis for our opinion on
compliance for each major federal program. However, our audit and the reports of other auditors do not
provide a legal determination of the State’s compliance.
Opinion on Each Major Federal Program
In our opinion, based on our audit and the reports of other auditors, the State complied, in all material
respects, with the types of compliance requirements referred to above that could have a direct and material
effect on each of its major federal programs for the year ended June 30, 2020.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required to be
reported in accordance with the Uniform Guidance and which is described in the accompanying “Schedule
of Findings and Questioned Costs” as item 2020-006. Our opinion on each major federal program is not
modified with respect to this matter.
The State’s response to the noncompliance finding identified in our audit is described in the accompanying
“Schedule of Findings and Questioned Costs” and “Auditee Prepared Corrective Action Plan.” The State’s
response and “Auditee Prepared Corrective Action Plan” were not subjected to the auditing procedures
applied in the audit of compliance and, accordingly, we express no opinion on them.
Report on Internal Control Over Compliance
Management of the State is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the State’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the State’s internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control over compliance that might
be material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that have not been identified. However, as discussed below, we did identify certain
deficiencies in internal control over compliance that we consider to be material weaknesses and significant
deficiencies.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
236
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will not
be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control
over compliance described in the accompanying “Schedule of Findings and Questioned Costs” as item
2020-006 to be a material weakness.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program that is less
severe than a material weakness in internal control over compliance, yet important enough to merit attention
by those charged with governance. We consider the deficiency in internal control over compliance
described in the accompanying “Schedule of Findings and Questioned Costs” as item 2020-005 to be a
significant deficiency.
The State’s response to the internal control over compliance findings identified in our audit is described in
the accompanying “Schedule of Findings and Questioned Costs” and “Auditee Prepared Corrective Action
Plan.” The State’s response and “Auditee Prepared Corrective Action Plan” were not subjected to the
auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on them.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose. As required by South Dakota
Codified Law 4-11-11, this report is a matter of public record and its distribution is not limited.
Russell A. Olson
Auditor General
April 22, 2021
237
238
AUDITOR PREPARED
SCHEDULE OF FINDINGS
AND QUESTIONED COSTS
AUDITOR PREPARED
SCHEDULE OF FINDINGS
AND QUESTIONED COSTS
State of South Dakota
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2020
Index
Page
Summary of Auditor’s Results 240
Current Audit Findings and Recommendations 242
Summary of Findings and Questioned Costs for Federal Awards:
Federal Finding
State Agency Agency Number Page
Non-Compliance Finding:
Department of Transportation DOT 2020-006 250
Material Weakness:
Department of Transportation DOT 2020-006 250
Significant Deficiency:
Department of Labor and Regulation DOL 2020-005 248
Summary of State Audit Findings:
Financial Statement Findings:
Department of Revenue 2020-001 242
Board of Economic Development 2020-002 244
Statewide Financial Reporting Process 2020-003 245
Department of Labor and Regulation 2020-004 247
Statewide Financial Reporting Process (SEFA) 2020-007 252
Corn Utilization Council 2020-008 254
Soybean Research and Promotion Council 2020-009 255
239
State of South Dakota
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2020
(Continued)
Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
Material weaknesses identified? Yes
Significant deficiencies identified? Yes
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
Material weaknesses identified? Yes
Significant deficiencies identified? Yes
Type of auditor’s report issued on compliance for major programs Unmodified
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? Yes
Identification of major federal programs:
CFDA Numbers Name of Federal Program or Cluster
Medicaid Cluster
Research and Development Cluster
Child Nutrition Cluster
Special Education Cluster (IDEA)
Clean Water State Revolving Fund Cluster
10.557 WIC Special Supplemental Nutrition Program for Women, Infants, and
Children
10.558 Child and Adult Care Food Program
17.225 Unemployment Insurance
20.934 Nationally Significant Freight and Highway Projects
21.019 Coronavirus Relief Fund
240
State of South Dakota
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2020
(Continued)
81.049 Office of Science Financial Assistance Program
81.UNKNOWN Fermi National Accelerator Laboratory Contract
84.010 Title I Grants to Local Educational Agencies
84.424 Student Support and Academic Enrichment Program
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher
Quality State Grants)
93.558 Temporary Assistance for Needy Families
93.659 Adoption Assistance
93.767 Children’s Health Insurance Program
97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Dollar threshold used to distinguish between Type A and Type B programs - $8,600,000
Auditee Qualified as low-risk auditee? No
241
DEPARTMENT OF REVENUE
CURRENT AUDIT FINDING AND RECOMMENDATIONS
Financial Statement Audit Finding:
Finding No. 2020-001: Inadequate Segregation of Duties over Access Rights
Type of Finding: Significant Deficiency
Criteria:
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the
Internal Control – Integrated Framework (2013 Framework) defined internal control as:
… a process, effected by an entity’s board of directors, management, and other
personnel, designed to provide reasonable assurance regarding the achievement of
objectives relating to operations, reporting, and compliance.
The Government Accountability Office – Standards for Internal Control in the Federal
Government principle of internal control 10 states, “The organization selects and develops
control activities that contribute to the mitigation of risks to the achievement of objectives to
acceptable levels.” and principle 12 states, “The organization deploys control activities through
policies that establish what is expected and procedures that put policies into action.”
The Government Accountability Office – Standards for Internal Control in the Federal
Government principle of internal control 16 states, “[m]anagement should establish and operate
monitoring activities to monitor the internal control system and evaluate the results” and
principle 17 states, “[m]anagement should remediate identified internal control deficiencies on a
timely basis”.
Condition:
In the prior audit, we noted that employees had edit access rights to both the RV 23 Capitalizing
on Efficiency and Data Accelerating Revenue (CEDAR) system and the South Dakota
Accounting System (SDAS). We recommended to management that only necessary CEDAR
system edit rights be provided for Department of Revenue (DOR) accountants or that policies
be developed to ensure that the accountants with those rights do not have access to any cash
or checks. Follow-up testing for FY2020 identified that the policies and procedures that the
DOR has been working on have not been developed enough to compensate for this weakness.
The DOR stated they are working towards security classifications within CEDAR to limit the
amount of access employees have and started reviewing the edit logs but have not
implemented any sort of signature control within this review. This represents a significant lack
of segregation of duties and presents a general security risk.
Cause:
The internal controls over access rights are not adequate to ensure proper segregation of
duties.
Effect:
As a result of inadequate controls over access rights, an employee could alter records without
the knowledge of management or other staff. This could allow for hiding errors, incorrect or
improper returns, or the misappropriation of assets.
Repeat Finding from Prior Year:
Yes
242
DEPARTMENT OF REVENUE
(Continued)
Recommendations:
1. We recommend that controls continue to be developed to ensure segregation of duties
among accounting staff.
2. We recommend the implementation of signature monitoring so that there is oversight if
the duties cannot be separated.
Views of Responsible Officials:
The Department of Revenue concurs with the finding.
243
BOARD OF ECONOMIC DEVELOPMENT
CURRENT AUDIT FINDING AND RECOMMENDATION
Financial Statement Audit Finding:
Finding No. 2020-002: Inadequate internal controls over financial reporting
Type of Finding: Material Weakness
Criteria:
Proper controls over financial reporting include the ability to prepare financial statements and
accompanying notes to the financial statements that are materially correct.
Condition:
The Revolving Economic Development Initiative Fund incorrectly reported the net position of the
Disaster Relief Subfund.
Cause:
The Revolving Economic Development Initiative Fund reported the net position of the Disaster
Relief Subfund as $190,000, which was the subfund’s ending cash balance. The net position
should have also included outstanding loans receivable totaling $10,310.000. The net position
of the Disaster Relief Subfund was adjusted to total $10,500,000.
Effect or Potential Effect:
The Statement of Net Position was materially misstated.
Repeat Finding from Prior Year:
No
Recommendation:
We recommend that controls be evaluated to ensure that they are able to prevent material
misstatements from occurring.
Views of Responsible Officials: The Governor’s Office of Economic Development concurs with
the finding.
244
STATEWIDE FINANCIAL REPORTING PROCESS
CURRENT AUDIT FINDING AND RECOMMENDATION
Financial Statement Audit Finding:
Finding No. 2020-003: Ineffective internal controls over financial reporting
Type of Finding: Material Weakness
Criteria:
In order for the State to compile the needed information for the State’s financial statements,
including the notes to the financial statements, the Bureau of Finance and Management (BFM)
issued a policies and procedures manual to be used while preparing year-end entries and
disclosures. From these broad guidelines, each agency develops specific policies and
procedures as well as various internal control procedures to properly report its portion of the
year-end entries and disclosures to BFM.
From the year-end entries and disclosure information provided by the agencies, the State’s
financial statements and applicable note disclosures are prepared by the BFM’s Accounting
Analysis and Financial Reporting Division. The BFM has implemented controls to detect and
correct reporting errors and omissions in the agency provided information to ensure the State’s
financial statements are accurate and reported in accordance with Generally Accepted
Accounting Principles.
Condition:
The internal controls implemented by the agencies and BFM did not adequately detect and
correct all of the material reporting errors and omissions.
For the reporting errors and omissions that we identified after the State’s internal control
procedures had been performed, we proposed correcting entries to the State’s financial
statements and the accompanying notes to the financial statements. The BFM posted adjusting
entries to the accounting records as recommended by us during the audit or adjusted the
financial statements or notes to the financial statements accordingly. Our audit identified errors
for the following areas:
• Proper recognition and classification of assets, liabilities, revenues, and
expenditures/expenses,
• Proper inclusion of separately issued audited financial statements for funds of the State,
• Financial statement preparation,
• Note disclosure preparation,
• Budget to Actual Required Supplementary Information preparation.
Cause:
In many instances the controls implemented by the agencies and BFM were not fully effective,
and as a result, year-end entries and disclosure information had material reporting errors and
omissions.
Effect:
Because the internal controls of the State were not fully effective in identifying and correcting
material misstatements, there existed an increased risk for inaccurate financial reporting.
245
STATEWIDE FINANCIAL REPORTING PROCESS
(Continued)
Repeat Finding from Prior Year:
No
Recommendation:
We recommend the BFM and State agencies continue to review and improve internal control
procedures that have been placed into operation to identify and correct weaknesses that are
resulting in reporting errors and omissions.
Views of Responsible Officials:
The Bureau of Finance and Management concurs with this audit finding.
246
DEPARTMENT OF LABOR AND REGULATION
The following was issued under a separate audit of the Department of Labor and Regulation by
Eide Bailly, LLP.
CURRENT AUDIT FINDINGS AND RECOMMENDATIONS
Financial Statement Audit Finding:
Finding No. 2020-004:
Material Weakness – Internal Control over Financial Reporting
Criteria:
The Fund’s internal control structure should provide for the complete and accurate recording of
all necessary adjustments in accordance with generally accepted accounting principles.
Condition:
During our engagement, we discovered errors based on our audit procedures and proposed
certain material adjustments to amounts in the financial statements that were corrected by
management. We also discovered a material error in the 2019 financial statements that was
corrected in the current year with a prior period adjustment.
Cause:
Existing internal controls did not prevent or detect these misstatements which were identified
and corrected during our audit.
Effect:
The identification of proposed audit adjustments increases the risk that unidentified and
uncorrected misstatements in the financial statements and financial reporting is not materially
correct.
Recommendation:
We recommend internal controls to be reviewed and revised relating to necessary fiscal year-
end accrual basis adjustments to ensure all necessary receivables and payables are accrued in
accordance with generally accepted accounting principles for a proprietary fund reporting on an
accrual basis.
Views of Responsible Officials:
Management agrees with the finding.
247
DEPARTMENT OF LABOR AND REGULATION
(Continued)
CURRENT AUDIT FINDINGS AND RECOMMENDATIONS
Federal Compliance Audit Finding:
Finding No. 2020-005: Internal Control over Compliance
Type of Finding: Significant Deficiency
CFDA Title: Unemployment Insurance
CFDA Number: 17.225
Federal Agency: Department of Labor
Category of Finding: Special Tests and Provisions – UI Reemployment Programs
Criteria:
The Reemployment Services and Eligibility Assessments (RESEA) program serves as one of
the Unemployment Insurance (UI) program’s primary programs that facilitates the reemployment
needs of UI claimants. RESEA is authorized by Section 306 of the Social Security Act and uses
an evidence-based integrated approach that combines an eligibility assessment for continuing
UI eligibility and the provision of reemployment services. Operating guidance for the RESEA
program is updated annually, UIPL 7-19 provides RESEA operating guidance for fiscal year
2019.
Condition:
In our testing of a sub-sample of RESEA cases, as instructed by the OMB Compliance
Supplement, we identified 2 instances where case files were missing certain documentation to
support compliance with program policies and program requirements. Those instances related
to case files of selected participants who did not report or attend their scheduled initial intake
meeting, and therefore were non-compliant, and there was no documentation of a notification
made to the Reemployment Assistance Division reporting the noncompliance and potential
eligibility issue to the Division.
Cause:
Existing controls in place did not ensure that proper notification was made, or supporting
documentation of notification maintained, to support notification was made.
Effect:
Failure to report participant non-compliance or identified potential UI eligibility issues can result
in claims of claimants not being properly adjudicated and potentially ineligible benefits being
paid to claimants.
Questioned Costs:
None reported
Context/Sampling:
A nonstatistical sample of 60 participants out of 2,051 case files were selected for testing this
special test and provision.
Repeat Finding from Prior Year(s)::
No
248
DEPARTMENT OF LABOR AND REGULATION
(Continued)
Recommendation:
We recommend management review existing control procedures and implement necessary
corrective action to revise current controls to ensure that all instances of program non-
compliance and potential UI eligibility concerns are promptly reported to the Reemployment
Assistance Division.
Views of Responsible Officials:
Management agrees with the finding.
249
DEPARTMENT OF TRANSPORTATION
CURRENT AUDIT FINDING AND RECOMMENDATION
Federal Compliance Audit Finding:
Finding No. 2020-006: Inadequate internal controls over Federal Financial Reports
Type of Finding: Material Weakness and Noncompliance
CFDA Title: Nationally Significant Freight and Highway Projects
CFDA Number: CFDA 20.934
Federal Award Number: INFRA 2017
Federal Award Year: 2019
Federal Agency: Department of Transportation
Type of Finding: Material Weakness and Noncompliance
Category of Finding: Reporting
Criteria:
The South Dakota Department of Transportation (DOT) is required under the Term Sheet Under
the Nationally Significant Freight and Highway Projects Discretionary Grant Program (INFRA
Grant) to submit Quarterly Project Progress Reports, which must include the SF-425 Federal
Financial Report.
Condition:
The SF-425 Federal Financial Reports for the periods ending December 31st, 2019 and
June 30th, 2020, two of the four quarters reported during the audit period, were selected for
testing and determined to have material variances as compared to the accounting system. In
comparing the data reported on the SF-425 to the South Dakota Accounting System, the
following variances were identified:
December 31, 2019 Reported Verified Variance
a. Cash Receipts $15,988,839.93 $13,021,522.87 $2,967,317.06
b. Cash Disbursements 15,988,839.93 13,021,522.87 2,967,317.06
e. Federal Share of Expenditures 15,988,839.93 13,021,522.87 2,967,317.06
j. Recipient Share of Expenditures 7,795,611.80 3,257,197.47 4,538,414.33
June 30, 2020 Reported Verified Variance
a. Cash Receipts $20,339,987.01 $16,772,956.64 $3,567,030.37
b. Cash Disbursements 20,339,987.01 16,772,956.64 3,567,030.37
e. Federal Share of Expenditures 20,339,987.01 16,772,956.64 3,567,030.37
j. Recipient Share of Expenditures 10,529,721.97 4,193,239.16 6,336,482.81
Cause:
The INFRA Grant was awarded for a project already under construction by the DOT at the time
of award and for which expenditures and reimbursements under another federal program had
been previously incurred. The DOT prepares the SF-425 Federal Financial Reports utilizing
data from an internal accounting system under the parameters of “Inception to Date.” As a
result, transactions which were not incurred or reimbursed under the INFRA program were
included in the SF-425 report. The parameters utilized also included transactions after the
250
DEPARTMENT OF TRANSPORTATION
(Continued)
cutoff date of the cash basis report. Further, no secondary review or other relevant internal
control was in place to detect or correct misstatements.
Effect:
The result of the errors noted is in an overstatement of a. Federal Cash Receipts, b. Federal
Cash Disbursements, e. Federal Share of Expenditures, and j. Recipient Share of Expenditures,
as noted in the table above.
Questioned Costs:
None
Repeat Finding from Prior Year:
No
Recommendation:
We recommend the Department implement internal controls to ensure the accuracy of SF-425
reports submitted.
Views of Responsible Officials:
The Department agrees with the finding.
251
STATEWIDE FINANCIAL REPORTING PROCESS (SEFA)
CURRENT AUDIT FINDING AND RECOMMENDATION
Financial Statement Audit Finding:
Finding No. 2020-007: Inadequate internal controls over the preparation of the Schedule
of Expenditures of Federal Awards
Type of Finding: Material Weakness
Criteria:
2 CFR 200.510 requires the auditee to prepare a Schedule of Expenditures of Federal Awards
which, at a minimum, must:
(1) List individual Federal programs by Federal agency. For a cluster of programs,
provide the cluster name, list individual Federal programs within the cluster of
programs, and provide the applicable Federal agency name.
…
(3) Provide total Federal awards expended for each individual Federal program and the
Assistance Listings Number or other identifying number when the Assistance Listings
information is not available. For a cluster of programs also provide the total for the
cluster.
(4) Include the total amount provided to subrecipients from each Federal program.
…
Condition:
The following significant misstatements were noted in the State’s Schedule of Expenditures of
Federal Awards (SEFA) file submitted to the auditors on February 26, 2021:
• Nine federal grant programs were improperly classified as part of the Employment
Service Cluster.
• CFDA No. 15.611 Wildlife Restoration and Basic Hunter Education was improperly
classified as part of the Research and Development Cluster rather than the Fish and
Wildlife Cluster.
• Two federal grant programs were improperly classified as part of the 477 Cluster. No
expenditures should have been reported in the 477 Cluster since it only applies to tribal
governments.
• One program received from the National Science Foundation was not properly classified
as part of the Research and Development Cluster.
• For CFDA No. 47.083 Integrative Activities, Grant Award No. 1736255, the amount
passed through to subrecipients exceeded total expenditures.
• A Department of Defense, Army grant award was improperly omitted from the SEFA.
• CFDA No. 12.112 Payments to States in Lieu of Real Estate Taxes grant program was
improperly omitted from the SEFA.
• Incorrect expenditures were reported for eight programs.
• Incorrect amounts were reported as passed through to subrecipients for seven
programs.
252
STATEWIDE FINANCIAL REPORTING PROCESS (SEFA)
(Continued)
Adjustments were made to the final SEFA to properly report the items noted above. Other less
significant misstatements were also noted and corrected.
Cause:
The Bureau of Finance and Management (BFM) is responsible for the preparation of the
statewide SEFA submitted as part of the state’s Single Audit Report in accordance with the
provisions of the Uniform Guidance. Each state agency prepares and submits an agency SEFA
to the BFM to be included in the statewide SEFA. To aid the state agencies in proper reporting
of their federal expenditures, the BFM has provided detailed written procedures to the personnel
responsible for preparation of the SEFA at each state agency. These procedures include
performing a reconciliation between the expenditures reported on the agency’s SEFA and the
South Dakota Accounting System (SDAS).
Limitations in SDAS require the BFM to perform manual procedures when combining the state
agency SEFAs into the statewide SEFA. The BFM has created detailed written procedures to
be performed to ensure the accuracy of the statewide SEFA. These procedures include, in part,
instructions on performing the following steps:
• Making sure the information from all state agency SEFAs are included on the final
SEFA.
• Verifying the state agency reconciliations with SDAS and following up on any
variances identified.
• Checking to make sure each federal program is reported under the proper CFDA
number, program name, federal agency, and cluster of programs.
Based on the results of our testing, it does not appear these procedures were consistently
followed by the BFM prior to submission of the SEFA file for audit and adequate review was not
performed to detect and correct these errors prior to submission.
Effect:
Because internal controls were not effective in identifying and correcting material
misstatements, significant audit adjustments were required to the Schedule of Expenditures of
Federal Awards and there existed an increased risk of inaccurate reporting to federal awarding
and pass-through agencies.
Repeat Finding from Prior Year:
No
Recommendation:
We recommend controls be implemented, including stronger oversight and review, to ensure
written procedures are consistently followed to prevent misstatements in the SEFA for future
periods.
Views of Responsible Officials:
The Bureau of Finance and Management concurs with this audit finding.
253
CORN UTILIZATION COUNCIL
The following was issued under a separate audit of the Corn Utilization Council by Eide Bailly,
LLP.
CURRENT AUDIT FINDING AND RECOMMENDATION
Financial Statement Audit Finding:
Finding No. 2020-008:
Significant Deficiency - Preparation of Financial Statements
Criteria:
Proper controls over financial reporting include the ability to prepare financial statements and
accompanying notes to the financial statements that are materially correct.
Condition:
The Council does not have an internal control system designed to provide for the preparation of
the financial statements being audited. We were requested to draft the financial statements and
accompanying notes to the financial statements.
Cause:
The Council has limited staff. They cannot justify having an individual on staff with the proper
accounting skills necessary for preparing the draft financial statements and accompanying notes
to the financial statements.
Effect:
This deficiency results in a reasonable possibility that the Council would not be able to draft the
financial statements and accompanying notes to the financial statements that are correct
without the assistance of the auditors.
Recommendation:
While we recognize that this condition is not unusual for an organization of your size, it is
important that you be aware of this condition for financial reporting purposes. Management and
the Board should continually be aware of the financial accounting and reporting requirements of
the Council as well as changes in these requirements.
Views of Responsible Officials:
Since it is not cost-effective for an organization of our size to have an individual on staff to
prepare audit ready financial statements, we have chosen to hire Eide Bailly, a public
accounting firm, to prepare our financial statements as part of the annual audit. Management
and the Board of Directors will review for propriety the draft financial statements and
accompanying notes to the financial statements.
254
SOYBEAN RESEARCH AND PROMOTION COUNCIL
The following was issued under a separate audit of the Soybean Research and Promotion
Council by Eide Bailly, LLP.
CURRENT AUDIT FINDING AND RECOMMENDATION
Financial Statement Audit Finding:
Finding No. 2020-009:
Significant Deficiency - Preparation of Financial Statements
Criteria:
Proper controls over financial reporting include the ability to prepare financial statements and
accompanying notes to the financial statements that are materially correct.
Condition:
The Council does not have an internal control system designed to provide for the preparation of
the financial statements being audited. We were requested to draft the financial statements and
accompanying notes to the financial statements.
Cause:
The accounting standards changes that impact financial reporting are ever changing. The
training specific to the Council’s financial reporting under the modified accrual basis of
accounting of a special revenue fund for a governmental entity is very specialized. The
accounting manager was unable to obtain the necessary continuing education relating to
financial reporting within the government industry, partially due to the COVID-19 pandemic and
cancellation of Qualified State Soybean Board conference.
Effect:
This deficiency results in a reasonable possibility that the Council would not be able to draft the
financial statements and accompanying notes to the financial statements that are correct
without the assistance of the auditors.
Recommendation:
The Council should look for opportunities of industry specific continuing education for the
accounting manager.
Views of Responsible Officials:
We will actively look for industry specific continuing education for the accounting manager to be
able to prepare the financial statements and the accompanying notes to the financial statements
in the future. We have designated a member of management to review the propriety of the draft
financial statements and accompanying notes to the financial statements.
255
256
AUDITEE PREPARED
CORRECTIVE ACTION
PLANS
AUDITEE PREPARED
CORRECTIVE ACTION
PLANS
STATE OF SOUTH DAKOTA
AUDITEE PREPARED CORRECTIVE ACTION PLANS
For the Fiscal Year Ended June 30, 2020
DEPARTMENT OF REVENUE
Finding No. 2020-001: Inadequate Segregation of Duties Over Access Rights
Corrective Action Plan: The Department of Revenue concurs with the finding and offers the
following corrective action plan. The Department has worked with the Bureau of Information
and Telecommunications and the lead programmer of the CEDAR Tax Accounting System
to create a new permission class in CEDAR titled “Accounting Finance”. This new
permission still allows Accounting Finance staff to perform the necessary duties in CEDAR,
such as preparing vouchers and handling refunds, but restricts certain functions that affect
ledger activity, including adjustments, transfers, moving payments, re-entering credits or
debits and removing credits or debits.
The programming was delayed by programming related to the COVID-19 pandemic, but
has now been completed and moved into production in October 2020. Prior to the
completion of the programming, staff was trained on appropriate activity in CEDAR and
directed to work through the Business Tax Accounting Manager for any updates that
needed to be completed in CEDAR, which has always been the department’s practice.
Further, user activity was reviewed regularly to ensure no Accounting Finance staff were
performing any activities in CEDAR that were not allowed by policy.
Contact Person: Toni Richardson, Director of Administration
Anticipated Completion Date: October 2020
BOARD OF ECONOMIC DEVELOPMENT
Finding No. 2020-002: Inadequate Internal Controls Over Financial Reporting
Corrective Action Plan: In order to prevent future material misstatements, we will add a control
to ensure that legislation is reviewed each year to check for possible restrictions on assets.
Contact Person: Travis Dovre, Fiscal Officer
Anticipated Completion Date: The control will be added immediately; however, the review will
only occur once a year after the legislative session.
257
STATE OF SOUTH DAKOTA
AUDITEE PREPARED CORRECTIVE ACTION PLANS
For the Fiscal Year Ended June 30, 2020
STATEWIDE FINANCIAL REPORTING PROCESS
Finding No. 2020-003: Ineffective Internal Controls Over Financial Reporting
Corrective Action Plan: The State is committed to timely and accurate financial reporting.
The State has numerous accounting and financial reporting procedures as well as
preventive and detective controls in place to ensure accurate and timely financial reporting.
However, the State struggles with hiring qualified accounting staff. Many accounting
positions remain unfilled for extended periods of time. Additionally, the COVID-19
pandemic created even more challenges including further staffing shortages, slowed
recruitment, lost training time, and increased research and reporting time for new pandemic
relief funds. These obstacles added additional complications to the financial reporting
process. Despite these hurdles, the State still managed to issue the fiscal year 2020
Comprehensive Annual Financial Report on time.
The Bureau of Finance and Management will continue to evaluate and improve the
financial reporting process. We will continue to enhance and streamline training for new
and existing accounting personnel across all state agencies. We will find ways to simplify
and automate procedures to achieve accurate financial reporting.
Contact Person: Keith Senger, Director of Accounting and Financial Reporting, Bureau of
Finance and Management
Anticipated Completion Date: Ongoing
DEPARTMENT OF LABOR AND REGULATION
The following was issued under a separate audit of the Unemployment Insurance Fund of the
South Dakota Department of Labor and Regulation by Eide Bailly, LLP.
Finding No. 2020-004: Auditor Proposed Adjustments and Prior Period Adjustment
Corrective Action Plan: The Department of Labor and Regulation accounting staff will receive
additional training in the next 12 months regarding preparation of financial statements. Both
Reemployment Assistance staff and Administrative Services staff will receive training.
When the financial statements are prepared in the future by Reemployment Assistance
staff, Administrative Services staff will double-check the statements prior to the audit for
accuracy.
Contact Person: Pauline Heier, Director of Reemployment Assistance; Mary Grode, Accountant
Manager; Emily Ward, Director of Administrative Services
Anticipated Completion Date: August 31, 2021
258
STATE OF SOUTH DAKOTA
AUDITEE PREPARED CORRECTIVE ACTION PLANS
For the Fiscal Year Ended June 30, 2020
DEPARTMENT OF LABOR AND REGULATION
(Continued)
Finding No. 2020-005: Special Tests and Provisions – UI Reemployment Programs
Corrective Action Plan: Development has started to extract the data from the Reemployment
Services Eligibility Assessment review forms in SDWORKS and automatically upload it to
the Reemployment Assistance system. Additionally, the processes will utilize review logic
to flag potential eligibility issues for Reemployment Assistance staff to review and make a
determination for eligibility/compliance.
Additional development is underway to create an automated process for sharing of relevant
case note/fact-finding information between SDWORKS and the Reemployment Assistance
system. This sharing of relevant case information will reduce the risk of miscommunication
between divisions and contribute to timeliness and accuracy of claimant activity tracking.
Development is planned to automate processes between SDWORKS and the
Reemployment Assistance system where the system will monitor claimant activity and if
scheduled activities are missed, will automatically insert and/or remove a hold on payment
of a claim for non-compliance with the Department of Labor and Regulation Reemployment
Services Eligibility Assessment requirements.
Contact Person: Kendra Ringstmeyer, Director of Workforce Development
Anticipated Completion Date: December 31, 2021
DEPARTMENT OF TRANSPORTATION
Finding No. 2020-006: Inadequate Internal Controls Over Federal Financial Reports
Corrective Action Plan: The Organization agrees with the finding. By March 23, 2021, Jerry
Ortbahn will Amend the completed SF-425 reports and the Quarterly Project Progress
Reports using data from the Finance accounting system and resubmit them to Federal
Highway.
Beginning March 31, 2021, The Department will receive a notification from FHWA Division
office when a new quarterly report guidance, forms and share point site are available for
use on any new grants. Patricia Devitt, Accounting Manager will notify Patty Thompson,
Accountant III of the new grant for reporting on SEFA. Each quarter the Department will
receive notification from FHWA Division office that the quarterly report is due and will
specify project number and PCN number. Mary Hoyt, Accountant II will report the data on
the SF-425. Patricia Devitt, Accounting Manager will review the report and send to Jerry
Ortbahn in Project Development. Jerry will prepare the Quarterly Progress Report based off
the SF-425 data and submit both reports to Federal Highway.
Contact Person: Kellie Beck, Director of Finance
Anticipated Completion Date: March 23, 2021
259
STATE OF SOUTH DAKOTA
AUDITEE PREPARED CORRECTIVE ACTION PLANS
For the Fiscal Year Ended June 30, 2020
STATEWIDE FINANCIAL REPORTING PROCESS (SEFA)
Finding No. 2020-007: Inadequate controls over the preparation of the Schedule of
Expenditures of Federal Awards
Corrective Action Plan: The State is committed to timely and accurate financial reporting.
As stated in the finding, the State has numerous accounting and financial reporting written
procedures and control activities designed to ensure the accuracy of the statewide
Schedule of Expenditures of Federal Awards (SEFA). However, the State struggles with
hiring qualified accounting staff. Many accounting positions remain unfilled for extended
periods of time. Additionally, the COVID-19 pandemic created even more challenges
including further staffing shortages, slowed recruitment, lost training time, and increased
research and reporting time for new pandemic relief funds. These obstacles added
additional complications to the financial reporting process.
The Bureau of Finance and Management will continue to evaluate and improve the
financial reporting process. We will continue to enhance and streamline training for new
and existing accounting personnel across all state agencies. We will find ways to simplify
and automate procedures to achieve accurate financial reporting
Contact Person: Keith Senger, Director of Accounting and Financial Reporting, Bureau of
Finance and Management
Anticipated Completion Date: Ongoing
SOUTH DAKOTA CORN UTILIZATION COUNCIL
The following was issued under a separate audit of the South Dakota Corn Utilization Council by
Eide Bailly, LLP.
Finding No. 2020-008: Preparation of Financial Statements
Corrective Action Plan: Since it is not cost-effective for an organization of our size to have an
individual on staff to prepare audit-ready financial statements, we have chosen to hire Eide
Bailly, a public accounting firm, to prepare our financial statements as part of the annual
audit. Management and the board of directors will review for propriety the draft financial
statements and accompanying notes to the financial statements.
Contact Person: No contact person was listed in the separately issued audit report.
Anticipated Completion Date: No anticipated completion date was listed in the separately issued
audit report.
260
STATE OF SOUTH DAKOTA
AUDITEE PREPARED CORRECTIVE ACTION PLANS
For the Fiscal Year Ended June 30, 2020
SOUTH DAKOTA SOYBEAN RESEARCH AND PROMOTIONAL COUNCIL
The following was issued under a separate audit of the South Dakota Soybean Research and
Promotional Council by Eide Bailly, LLP.
Finding No. 2020-009: Preparation of Financial Statements
Corrective Action Plan: We will actively look for industry specific continuing education for the
accounting manager to be able to prepare the financial statements and the accompanying
notes to the financial statements in the future. We have designated a member of
management to review the propriety of the draft financial statements and accompanying
notes to the financial statements.
Contact Person: No contact person was listed in the separately issued audit report.
Anticipated Completion Date: No anticipated completion date was listed in the separately issued
audit report.
261
262
AUDITEE PREPARED
SUMMARY SCHEDULE OF
PRIOR AUDIT FINDINGS
AUDITEE PREPARED
SUMMARY SCHEDULE OF
PRIOR AUDIT FINDINGS
STATE OF SOUTH DAKOTA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Fiscal Year Ended June 30, 2020
DEPARTMENT OF REVENUE
Finding No. 2019-001: Inadequate Segregation of Duties Over Access Rights
Initial Year of Finding: Fiscal Year 2019
Status: Repeat audit finding issued in Fiscal Year 2020 Single Audit – see Finding No. 2020-001
Reason for Recurrence: The necessary programming was not completed due to COVID-19 and
Department of Revenue turnover.
DEPARTMENT OF HUMAN SERVICES
Finding No. 2019-002: Inadequate Controls Over Matching Requirements
Initial Year of Finding: Fiscal Year 2019
Status: Fully Corrected – Corrective Action was Taken
CORN UTILIZATION COUNCIL
The following was issued under a separate audit of the Corn Utilization Council by Eide Bailly,
LLP.
Finding No. 2019-003: Preparation of Financial Statements
Initial Year of Finding: Fiscal Year 2010
Status: Repeat audit finding issued in Fiscal Year 2020 Single Audit – see Finding No. 2020-008
Reason for Recurrence: No reason given – see Finding No. 2020-008
Finding No. 2019-004: Contracted Services Agreement
Initial Year of Finding: Fiscal Year 2019
Status: There were no amendments during the year and the fee paid to SDCGA was supported
by approval of the annual contract by the board of directors, however, the amount paid
was in excess of the contract amount by an insignificant amount during the year ended
June 30, 2020.
263
STATE OF SOUTH DAKOTA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Fiscal Year Ended June 30, 2020
SOYBEAN RESEARCH AND PROMOTION COUNCIL
The following was issued under a separate audit of the Soybean Research and Promotion
Council by Eide Bailly, LLP.
Finding No. 2019-005: Preparation of Financial Statements and Material Audit
Adjustments
Initial Year of Finding: Fiscal Year 2010
Status: Repeat audit finding issued in Fiscal Year 2020 Single Audit – see Finding No. 2020-009
Reason for Recurrence: No reason given – see Finding No. 2020-009
Finding No. 2019-006: Segregation of Duties
Initial Year of Finding: Fiscal Year 2018
Status: The Council continues to be fully staffed and has implemented procedures and
processes to segregate duties to the extent possible for the size of its organization to
reduce this risk. Although we have limited staffing, the controls established over the
current processes and oversight exercised by the Executive Director and the Board of
Directors are taken seriously and evaluated on a continuous basis.
Finding No. 2019-007: Late Submission of USB Remittances and QSSB Remittances
Initial Year of Finding: Fiscal Year 2019
Status: Fully Corrected – Corrective Action was Taken
264
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