Audit 352775

2024-004: U.S. Department of Homeland Security Assistance to Firefighters Grant, 97.044 Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 97.044 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 that a non-Federal entity must use its own documented procurement procedures which reflect applicable state and local laws and regulations, provided that the policies conform to applicable federal law. In addition, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement policies were consistent with state laws under Nevada Revised Statutes but did not consider or conform to all applicable federal procurement laws. In addition, procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction. Cause: North Lake Tahoe Fire Protection District (the District) did not have adequate internal controls to ensure procurement policies complied with applicable federal laws or to ensure procedures were followed to verify an entity was not suspended or debarred prior to entering into a covered transaction. Effect: An inappropriate procurement method may be used. A covered transaction may be entered into with an entity that is suspended or debarred. Questioned Costs: None Context/Sampling: All procurements were tested as a population of only two were noted. Suspension and debarment verification procedures were not performed for either covered transaction. Lastly, as noted the procurement policies were reviewed and were absent consideration of federal criteria regarding: • Avoidance of acquisition of duplicative items • Awarding to responsible parties and contract oversight • Federal solicitation provisions • Disadvantaged Business Enterprise programs • Contract price and types • Bonding requirements • Contract provisions and recovered materials Repeat Finding from Prior Year: No Recommendation: We recommend the District update its written procurement policy to include federal laws and implement internal controls to ensure procedures are followed to verify an entity is not suspended or debarred prior to entering into a covered transaction. Views of Responsible Officials: North Lake Tahoe Fire Protection District agrees with this finding.

2024-005: U.S. Department of Homeland Security Assistance to Firefighters Grant, 97.044 Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards EMW-2022-FG-03975 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 200.303 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. The grant awards require the submission of Federal Financial Reports (SF-425). Condition: Information reported did not agree to underlying supporting records. Cause: North Lake Tahoe Fire Protection District (the District) did not have adequate internal controls to provide for accurate reporting of the SF-425 report. Effect: Inaccurate information was reported to the federal agency. Questioned Costs: None Context/Sampling: A non-statistical sample of three SF-425 reports out of a population of eight was selected for testing. Amounts reported on one of the three reports tested did not agree to underlying support. An error was noted as follows: SF-425 for Quarter Ended 12/31/2023 for grant EMW-03975: Key Line Item Amount Reported Amount Supported Cash Disbursements $76,855.71 $0 Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for accurate reporting of the SF-425 report. Views of Responsible Officials: North Lake Tahoe Fire Protection District agrees with this finding.

2024-004: U.S. Department of Homeland Security Assistance to Firefighters Grant, 97.044 Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 97.044 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 that a non-Federal entity must use its own documented procurement procedures which reflect applicable state and local laws and regulations, provided that the policies conform to applicable federal law. In addition, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: Procurement policies were consistent with state laws under Nevada Revised Statutes but did not consider or conform to all applicable federal procurement laws. In addition, procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction. Cause: North Lake Tahoe Fire Protection District (the District) did not have adequate internal controls to ensure procurement policies complied with applicable federal laws or to ensure procedures were followed to verify an entity was not suspended or debarred prior to entering into a covered transaction. Effect: An inappropriate procurement method may be used. A covered transaction may be entered into with an entity that is suspended or debarred. Questioned Costs: None Context/Sampling: All procurements were tested as a population of only two were noted. Suspension and debarment verification procedures were not performed for either covered transaction. Lastly, as noted the procurement policies were reviewed and were absent consideration of federal criteria regarding: • Avoidance of acquisition of duplicative items • Awarding to responsible parties and contract oversight • Federal solicitation provisions • Disadvantaged Business Enterprise programs • Contract price and types • Bonding requirements • Contract provisions and recovered materials Repeat Finding from Prior Year: No Recommendation: We recommend the District update its written procurement policy to include federal laws and implement internal controls to ensure procedures are followed to verify an entity is not suspended or debarred prior to entering into a covered transaction. Views of Responsible Officials: North Lake Tahoe Fire Protection District agrees with this finding.

2024-005: U.S. Department of Homeland Security Assistance to Firefighters Grant, 97.044 Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards EMW-2022-FG-03975 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 200.303 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. The grant awards require the submission of Federal Financial Reports (SF-425). Condition: Information reported did not agree to underlying supporting records. Cause: North Lake Tahoe Fire Protection District (the District) did not have adequate internal controls to provide for accurate reporting of the SF-425 report. Effect: Inaccurate information was reported to the federal agency. Questioned Costs: None Context/Sampling: A non-statistical sample of three SF-425 reports out of a population of eight was selected for testing. Amounts reported on one of the three reports tested did not agree to underlying support. An error was noted as follows: SF-425 for Quarter Ended 12/31/2023 for grant EMW-03975: Key Line Item Amount Reported Amount Supported Cash Disbursements $76,855.71 $0 Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for accurate reporting of the SF-425 report. Views of Responsible Officials: North Lake Tahoe Fire Protection District agrees with this finding.