Hello,
It depends on what you plan to do with the model. If the dam does not break it is probably better to represent it as an island. The flow through the dam can be represented by a culvert. What you did can also work but however with steep dry bottom slopes which may cause local problems (and what about the flow through the dam ?). If it is for a dam-break it is different, then you can inspire from test case Malpasset.
With best regards,
Jean-Michel Hervouet