Audit 337882

2024-003: U.S. Department of Education Direct Program Impact Aid, 84.041 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.041 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 reporting required under the grant award. Condition: Impact aid annual application did not have evidence of the reporting figures used at the time of submission of the report. Cause: Elko County School District did not have adequate internal controls to ensure maintenance of records used to support the reporting required under the grant award. Effect: Reporting figures may be incorrect and not detected by Elko County School District. Questioned Costs: None noted Context/Sampling: An annual application is required and was selected for testing. Reporting was not maintained to substantiate key line items for current year membership on the survey date reported. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of records used to complete required reporting for the Impact Aid grant award. Views of Responsible Officials: Management agrees with the finding.

2024-005: U.S. Department of Education Passed through State of Nevada Department of Education Supporting Effective Instruction State Grants, 84.367 Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 84.367 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides 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. Condition: Underlying supporting documentation that the Elko County School District compiled to monitor local compliance with level of effort requirements was not maintained. Cause: Elko County School District did not have sufficient internal controls to ensure level of effort tracking was maintained and reviewed. Effect: Noncompliance with level of effort requirements may not be detected. Questioned Costs: None Context/Sampling: Underlying supporting documentation for monitoring was not maintained. A recalculation of the level of effort requirements, as applicable, for the fiscal year ending June 30, 2024, was performed and no issues of noncompliance were noted. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District enhance internal controls to ensure information used in the level of effort monitoring is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-005: U.S. Department of Education Passed through State of Nevada Department of Education Supporting Effective Instruction State Grants, 84.367 Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 84.367 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides 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. Condition: Underlying supporting documentation that the Elko County School District compiled to monitor local compliance with level of effort requirements was not maintained. Cause: Elko County School District did not have sufficient internal controls to ensure level of effort tracking was maintained and reviewed. Effect: Noncompliance with level of effort requirements may not be detected. Questioned Costs: None Context/Sampling: Underlying supporting documentation for monitoring was not maintained. A recalculation of the level of effort requirements, as applicable, for the fiscal year ending June 30, 2024, was performed and no issues of noncompliance were noted. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District enhance internal controls to ensure information used in the level of effort monitoring is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-003: U.S. Department of Education Direct Program Impact Aid, 84.041 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 84.041 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 reporting required under the grant award. Condition: Impact aid annual application did not have evidence of the reporting figures used at the time of submission of the report. Cause: Elko County School District did not have adequate internal controls to ensure maintenance of records used to support the reporting required under the grant award. Effect: Reporting figures may be incorrect and not detected by Elko County School District. Questioned Costs: None noted Context/Sampling: An annual application is required and was selected for testing. Reporting was not maintained to substantiate key line items for current year membership on the survey date reported. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of records used to complete required reporting for the Impact Aid grant award. Views of Responsible Officials: Management agrees with the finding.

2024-005: U.S. Department of Education Passed through State of Nevada Department of Education Supporting Effective Instruction State Grants, 84.367 Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 84.367 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides 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. Condition: Underlying supporting documentation that the Elko County School District compiled to monitor local compliance with level of effort requirements was not maintained. Cause: Elko County School District did not have sufficient internal controls to ensure level of effort tracking was maintained and reviewed. Effect: Noncompliance with level of effort requirements may not be detected. Questioned Costs: None Context/Sampling: Underlying supporting documentation for monitoring was not maintained. A recalculation of the level of effort requirements, as applicable, for the fiscal year ending June 30, 2024, was performed and no issues of noncompliance were noted. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District enhance internal controls to ensure information used in the level of effort monitoring is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-005: U.S. Department of Education Passed through State of Nevada Department of Education Supporting Effective Instruction State Grants, 84.367 Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 84.367 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides 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. Condition: Underlying supporting documentation that the Elko County School District compiled to monitor local compliance with level of effort requirements was not maintained. Cause: Elko County School District did not have sufficient internal controls to ensure level of effort tracking was maintained and reviewed. Effect: Noncompliance with level of effort requirements may not be detected. Questioned Costs: None Context/Sampling: Underlying supporting documentation for monitoring was not maintained. A recalculation of the level of effort requirements, as applicable, for the fiscal year ending June 30, 2024, was performed and no issues of noncompliance were noted. Repeat Finding from Prior Year(s): No Recommendation: We recommend Elko County School District enhance internal controls to ensure information used in the level of effort monitoring is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.

2024-004: 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 Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing numbers 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 entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. In addition, procurements must be carried out in a manner consistent with free and open competition and contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining rate quotations or maintaining sole source vendor documentation, if applicable. In addition, contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: Elko County School District did not have adequate internal controls to ensure that procurement processes were followed relating to obtaining rate quotations or maintaining sole source vendor documentation, if applicable, or including required contract provisions. Effect: Noncompetitive purchases may be deemed improper. Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: Child Nutrition Cluster, 10.553, 10.555 and 10.582 A nonstatistical sample of three procurement transactions out of nine was selected for testing for purchases over the micro-purchase threshold over $10,000. We noted three vendors where the vendor documentation maintained did not have the documented rate quotations or single source vendor documentation. COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 A nonstatistical sample of five procurement transactions out of 18 was selected for testing, including one contract subject to Appendix II to Part 200. The one contract was missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): Yes Recommendation: We recommend Elko County School District implement internal control policies to follow required procurement processes including obtaining rate quotations or maintaining single source vendor documentation and including required contract provisions. Views of Responsible Officials: Management agrees with the finding.