FAC Explorer

Audit 291944

FY End
2023-06-30
Total Expended
$6.90M
Findings
2
Programs
5
Organization: City of Fallon, Nevada (NV)
Year: 2023 Accepted: 2024-02-23
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370314 2023-002 Material Weakness - L
946756 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.81M Yes 1
14.227 Community Development Block Grant $724,308 - 0
20.106 Airport Improvement Program $316,202 - 0
97.042 Emergency Management Performance Grants $28,422 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $24,927 - 0

Contacts

Name Title Type
VRSWHCKWFLJ5 Sean Richardson Auditee
7754235104 Teri Gage Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The City of Fallon has not elected to use the 10% de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Fallon under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with the 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). Because the Schedule presents only a selected portion of the operations of the City of Fallon, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the City of Fallon.
Title: Note B - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The City of Fallon has not elected to use the 10% de minimis cost rate. Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
Title: Note C - Indirect Cost Rate Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The City of Fallon has not elected to use the 10% de minimis cost rate. The City of Fallon has not elected to use the 10% de minimis cost rate.

Finding Details

Finding 2023-002
2023-002 U.S. Department of Treasury Passed Through State of Nevada Governor’s Finance Office COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Federal Financial Assistance Listing 21.027 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: The OMB compliance supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by underlying accounting information or performance records, and are fairly presented in accordance with government requirements. The City of Fallon is required to submit the Project and Expenditure Report quarterly. The following are key line items on the Project and Expenditure report: current period obligation, cumulative obligation, current period expenditure, cumulative expenditure, subawards, and detailed information on loans issued. Condition: We noted the City incorrectly reported projected obligations and expenditures, however the amount shown in the total was amounts actually spent for this grant. Cause: The City did not have adequate internal controls for accurate reporting. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested. Repeat Finding from Prior Year: No. Recommendation: We recommend City of Fallon enhance internal controls to ensure its reports are accurate and reviewed by someone other than the preparer prior to submission. Views of Responsible Officials: Management will closely review the Project and Expenditure Report User Guide to ensure future reports are in compliance and are properly reviewed prior to submission.
Finding 2023-002
2023-002 U.S. Department of Treasury Passed Through State of Nevada Governor’s Finance Office COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Federal Financial Assistance Listing 21.027 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: The OMB compliance supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by underlying accounting information or performance records, and are fairly presented in accordance with government requirements. The City of Fallon is required to submit the Project and Expenditure Report quarterly. The following are key line items on the Project and Expenditure report: current period obligation, cumulative obligation, current period expenditure, cumulative expenditure, subawards, and detailed information on loans issued. Condition: We noted the City incorrectly reported projected obligations and expenditures, however the amount shown in the total was amounts actually spent for this grant. Cause: The City did not have adequate internal controls for accurate reporting. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested. Repeat Finding from Prior Year: No. Recommendation: We recommend City of Fallon enhance internal controls to ensure its reports are accurate and reviewed by someone other than the preparer prior to submission. Views of Responsible Officials: Management will closely review the Project and Expenditure Report User Guide to ensure future reports are in compliance and are properly reviewed prior to submission.