Audit 352768

2024-008: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all awards under assistance listing 15.235 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) states that charges for salaries and wages must be based on records that accurately reflect the work performed. In part, the records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that, in part, that the system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the federal award is accurate, allowable, and properly allocated. 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 effect 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: Labor rates charged to the federal award did not agree to underlying support of payroll costs. In addition, labor rates were not reviewed prior to being charged to the federal award. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to ensure payroll costs charged to the federal award were accurate. Effect: Inaccurate payroll costs were charged to the federal award, which resulted in an underbilling of actual payroll costs. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 ($50,798) out of a population of 433 ($420,962) payroll expenditures at the District was selected for testing. We noted 24 payroll transactions did not agree to underlying support for the employees payroll and fringe rate. These 24 payroll transactions totaled $20,798 and were underbilled to the federal award by $422. In addition, the labor rates charged to the federal award were not reviewed on any of the 60 transactions. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure payroll costs charged to the federal award are accurate. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-009: U.S. Department of The Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Cash Management Significant Deficiency in Internal Control over Compliance Grant Award Number: Potentially affects all grant awards included under assistance listing 15.235 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 effect 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: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of Requests for Reimbursement. Effect: Inaccurate information may be reported and funds may not be drawn on a reimbursement basis. Questioned Costs: None Context/Sampling: A nonstatistical sample of 2 Requests for Reimbursement out of a population of 4 was selected for testing. We noted that there was no evidence of review on one of the Requests for Reimbursement. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of Requests for Reimbursement. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-010: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 15.235 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 effect 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. The grant awards require the submission of Federal Financial Reports (SF-425) and Performance Reports. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Information reported did not agree to underlying supporting records. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of SF-425 reports or Performance Reports. Effect: Inaccurate information was reported to the federal agency on the SF-425 and inaccurate information was reported to the pass-through entity on the Performance Reports. Questioned Costs: None Context/Sampling: A non-statistical sample of two SF-425 reports out of a population of four was selected for testing. A non-statistical sample of two Performance Reports out of a population of four was selected for testing. We noted that there was no evidence of review on all four reports tested. Amounts reported on all four reports tested did not agree to underlying support. Errors are noted as follows: SF-425 for Quarter Ended 9/30/2023: SF-425 for Quarter Ended 3/31/2024: Performance Report to TRCD for Quarter End 9/30/2023: Performance Report to TRCD for Quarter End 12/31/2023: Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of SF-425 reports and Performance Reports. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-008: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all awards under assistance listing 15.235 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) states that charges for salaries and wages must be based on records that accurately reflect the work performed. In part, the records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that, in part, that the system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the federal award is accurate, allowable, and properly allocated. 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 effect 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: Labor rates charged to the federal award did not agree to underlying support of payroll costs. In addition, labor rates were not reviewed prior to being charged to the federal award. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to ensure payroll costs charged to the federal award were accurate. Effect: Inaccurate payroll costs were charged to the federal award, which resulted in an underbilling of actual payroll costs. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 ($50,798) out of a population of 433 ($420,962) payroll expenditures at the District was selected for testing. We noted 24 payroll transactions did not agree to underlying support for the employees payroll and fringe rate. These 24 payroll transactions totaled $20,798 and were underbilled to the federal award by $422. In addition, the labor rates charged to the federal award were not reviewed on any of the 60 transactions. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure payroll costs charged to the federal award are accurate. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-009: U.S. Department of The Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Cash Management Significant Deficiency in Internal Control over Compliance Grant Award Number: Potentially affects all grant awards included under assistance listing 15.235 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 effect 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: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of Requests for Reimbursement. Effect: Inaccurate information may be reported and funds may not be drawn on a reimbursement basis. Questioned Costs: None Context/Sampling: A nonstatistical sample of 2 Requests for Reimbursement out of a population of 4 was selected for testing. We noted that there was no evidence of review on one of the Requests for Reimbursement. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of Requests for Reimbursement. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-010: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 15.235 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 effect 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. The grant awards require the submission of Federal Financial Reports (SF-425) and Performance Reports. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Information reported did not agree to underlying supporting records. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of SF-425 reports or Performance Reports. Effect: Inaccurate information was reported to the federal agency on the SF-425 and inaccurate information was reported to the pass-through entity on the Performance Reports. Questioned Costs: None Context/Sampling: A non-statistical sample of two SF-425 reports out of a population of four was selected for testing. A non-statistical sample of two Performance Reports out of a population of four was selected for testing. We noted that there was no evidence of review on all four reports tested. Amounts reported on all four reports tested did not agree to underlying support. Errors are noted as follows: SF-425 for Quarter Ended 9/30/2023: SF-425 for Quarter Ended 3/31/2024: Performance Report to TRCD for Quarter End 9/30/2023: Performance Report to TRCD for Quarter End 12/31/2023: Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of SF-425 reports and Performance Reports. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-007: U.S. Department of Homeland Security Pass-through North Lake Tahoe Fire Protection District Assistance to Firefighters Grant, 97.044 Equipment and Real Property Management Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 97.044 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 200.313 requires that property records be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including federal award identification number), who holds title, acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Condition: Property records did not originally include the title, acquisition date, percentage of federal participation, and condition of the equipment. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to ensure property records track all applicable information on equipment purchased with federal funds. Effect: Incomplete information was maintained for federal equipment. Questioned Costs: None Context/Sampling: A nonstatistical sample of 9 out of 57 equipment was selected for testing. None of the equipment tested included all required information. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure property records are appropriately maintained. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-008: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all awards under assistance listing 15.235 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) states that charges for salaries and wages must be based on records that accurately reflect the work performed. In part, the records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that, in part, that the system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the federal award is accurate, allowable, and properly allocated. 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 effect 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: Labor rates charged to the federal award did not agree to underlying support of payroll costs. In addition, labor rates were not reviewed prior to being charged to the federal award. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to ensure payroll costs charged to the federal award were accurate. Effect: Inaccurate payroll costs were charged to the federal award, which resulted in an underbilling of actual payroll costs. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 ($50,798) out of a population of 433 ($420,962) payroll expenditures at the District was selected for testing. We noted 24 payroll transactions did not agree to underlying support for the employees payroll and fringe rate. These 24 payroll transactions totaled $20,798 and were underbilled to the federal award by $422. In addition, the labor rates charged to the federal award were not reviewed on any of the 60 transactions. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure payroll costs charged to the federal award are accurate. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-009: U.S. Department of The Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Cash Management Significant Deficiency in Internal Control over Compliance Grant Award Number: Potentially affects all grant awards included under assistance listing 15.235 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 effect 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: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of Requests for Reimbursement. Effect: Inaccurate information may be reported and funds may not be drawn on a reimbursement basis. Questioned Costs: None Context/Sampling: A nonstatistical sample of 2 Requests for Reimbursement out of a population of 4 was selected for testing. We noted that there was no evidence of review on one of the Requests for Reimbursement. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of Requests for Reimbursement. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-010: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 15.235 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 effect 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. The grant awards require the submission of Federal Financial Reports (SF-425) and Performance Reports. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Information reported did not agree to underlying supporting records. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of SF-425 reports or Performance Reports. Effect: Inaccurate information was reported to the federal agency on the SF-425 and inaccurate information was reported to the pass-through entity on the Performance Reports. Questioned Costs: None Context/Sampling: A non-statistical sample of two SF-425 reports out of a population of four was selected for testing. A non-statistical sample of two Performance Reports out of a population of four was selected for testing. We noted that there was no evidence of review on all four reports tested. Amounts reported on all four reports tested did not agree to underlying support. Errors are noted as follows: SF-425 for Quarter Ended 9/30/2023: SF-425 for Quarter Ended 3/31/2024: Performance Report to TRCD for Quarter End 9/30/2023: Performance Report to TRCD for Quarter End 12/31/2023: Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of SF-425 reports and Performance Reports. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-008: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all awards under assistance listing 15.235 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) states that charges for salaries and wages must be based on records that accurately reflect the work performed. In part, the records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that, in part, that the system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the federal award is accurate, allowable, and properly allocated. 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 effect 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: Labor rates charged to the federal award did not agree to underlying support of payroll costs. In addition, labor rates were not reviewed prior to being charged to the federal award. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to ensure payroll costs charged to the federal award were accurate. Effect: Inaccurate payroll costs were charged to the federal award, which resulted in an underbilling of actual payroll costs. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 ($50,798) out of a population of 433 ($420,962) payroll expenditures at the District was selected for testing. We noted 24 payroll transactions did not agree to underlying support for the employees payroll and fringe rate. These 24 payroll transactions totaled $20,798 and were underbilled to the federal award by $422. In addition, the labor rates charged to the federal award were not reviewed on any of the 60 transactions. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure payroll costs charged to the federal award are accurate. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-009: U.S. Department of The Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Cash Management Significant Deficiency in Internal Control over Compliance Grant Award Number: Potentially affects all grant awards included under assistance listing 15.235 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 effect 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: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of Requests for Reimbursement. Effect: Inaccurate information may be reported and funds may not be drawn on a reimbursement basis. Questioned Costs: None Context/Sampling: A nonstatistical sample of 2 Requests for Reimbursement out of a population of 4 was selected for testing. We noted that there was no evidence of review on one of the Requests for Reimbursement. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of Requests for Reimbursement. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-010: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 15.235 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 effect 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. The grant awards require the submission of Federal Financial Reports (SF-425) and Performance Reports. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Information reported did not agree to underlying supporting records. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of SF-425 reports or Performance Reports. Effect: Inaccurate information was reported to the federal agency on the SF-425 and inaccurate information was reported to the pass-through entity on the Performance Reports. Questioned Costs: None Context/Sampling: A non-statistical sample of two SF-425 reports out of a population of four was selected for testing. A non-statistical sample of two Performance Reports out of a population of four was selected for testing. We noted that there was no evidence of review on all four reports tested. Amounts reported on all four reports tested did not agree to underlying support. Errors are noted as follows: SF-425 for Quarter Ended 9/30/2023: SF-425 for Quarter Ended 3/31/2024: Performance Report to TRCD for Quarter End 9/30/2023: Performance Report to TRCD for Quarter End 12/31/2023: Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of SF-425 reports and Performance Reports. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

2024-007: U.S. Department of Homeland Security Pass-through North Lake Tahoe Fire Protection District Assistance to Firefighters Grant, 97.044 Equipment and Real Property Management Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 97.044 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 200.313 requires that property records be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including federal award identification number), who holds title, acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. Condition: Property records did not originally include the title, acquisition date, percentage of federal participation, and condition of the equipment. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to ensure property records track all applicable information on equipment purchased with federal funds. Effect: Incomplete information was maintained for federal equipment. Questioned Costs: None Context/Sampling: A nonstatistical sample of 9 out of 57 equipment was selected for testing. None of the equipment tested included all required information. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure property records are appropriately maintained. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.