Audit 307955

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-003: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 10.553 and 10.555 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is adequate documentation to support payroll costs through approved timecards. Condition: Payroll costs charged to the program did not have evidence of timecards by the employee. Cause: Elko County School District did not have adequate internal controls to ensure maintenance of timecards charged to the program with approvals. Effect: Unallowable costs may be charged to the program and not detected by Elko County School District. Questioned Costs: None noted Context/Sampling: A nonstatistical sample of 40 payroll charges out of a population of 2,021 charges were selected for testing. For five charges made there was no documented timecards with appropriate approval. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of timecards for the program with appropriate approvals. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-003: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 10.553 and 10.555 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is adequate documentation to support payroll costs through approved timecards. Condition: Payroll costs charged to the program did not have evidence of timecards by the employee. Cause: Elko County School District did not have adequate internal controls to ensure maintenance of timecards charged to the program with approvals. Effect: Unallowable costs may be charged to the program and not detected by Elko County School District. Questioned Costs: None noted Context/Sampling: A nonstatistical sample of 40 payroll charges out of a population of 2,021 charges were selected for testing. For five charges made there was no documented timecards with appropriate approval. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of timecards for the program with appropriate approvals. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-003: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 10.553 and 10.555 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is adequate documentation to support payroll costs through approved timecards. Condition: Payroll costs charged to the program did not have evidence of timecards by the employee. Cause: Elko County School District did not have adequate internal controls to ensure maintenance of timecards charged to the program with approvals. Effect: Unallowable costs may be charged to the program and not detected by Elko County School District. Questioned Costs: None noted Context/Sampling: A nonstatistical sample of 40 payroll charges out of a population of 2,021 charges were selected for testing. For five charges made there was no documented timecards with appropriate approval. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of timecards for the program with appropriate approvals. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-003: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 10.553 and 10.555 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is adequate documentation to support payroll costs through approved timecards. Condition: Payroll costs charged to the program did not have evidence of timecards by the employee. Cause: Elko County School District did not have adequate internal controls to ensure maintenance of timecards charged to the program with approvals. Effect: Unallowable costs may be charged to the program and not detected by Elko County School District. Questioned Costs: None noted Context/Sampling: A nonstatistical sample of 40 payroll charges out of a population of 2,021 charges were selected for testing. For five charges made there was no documented timecards with appropriate approval. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of timecards for the program with appropriate approvals. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Education Passed through State of Nevada Department of Education Special Education Cluster (IDEA) Special Education Grants to States, 84.027 COVID-19, Special Education Grants to States, 84.027 Special Education Preschool Grants, 84.173 COVID-19, Special Education Preschool Grants, 84.173 U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster School Breakfast Program, 10.553 National School Lunch Program, 10.555 Fresh Fruit and Vegetable Program, 10.582 U.S. Department of Treasury Passed through State of Nevada Department of Education and the State of Nevada Department of Agriculture COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.027, 84.173, 10.553, 10.555, 10.582, and 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires procurement processes for acquiring goods and services over $10,000 include obtaining rate quotations, otherwise sole source vendor documentation must be maintained. Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding the verification of whether an entity was suspended or debarred before entering into a covered transaction. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or to verify subrecipients were not suspended or debarred prior to entering into a covered transaction. Effect: Procurement policies are not adhered to. A covered transaction may be entered into with an entity or subrecipient that is suspended or debarred. Questioned Costs: None Context/Sampling: Special Education Cluster (IDEA), 84.027 and 84.173 A nonstatistical sample of four vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of ten vendors meeting this criteria were selected for testing. For all four vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Child Nutrition Cluster, 10.553, 10.555 and 10.582 All vendors which had purchases over the micro-purchase threshold over $10,000 for the fiscal year were selected for testing as the population was three. For two vendors there was no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five vendors which had purchases over the micropurchase threshold over $10,000 for the fiscal year out of a population of 25 vendors meeting this criteria were selected for testing. There were four vendors with no documented rate quotations or single source vendor documentation maintained or evidence of verification if the parties were suspended or debarred. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations and ensuring entities are not suspended or debarred prior to entering into covered transactions. Views of Responsible Officials: Management agrees with the finding.