Audit 364452

Department of Homeland Security, State of Nebraska Office of Emergency Management Agency, 97.039, DR‐4420‐NE‐0017 Hazard Mitigation Grant Program Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule. Condition: The District does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the District meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the District would not be able to draft a complete and accurate schedule. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding form Prior Year: Yes, prior year finding 2023‐002. Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the District is aware of this condition for financial reporting requirements relating to the District’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Department of Homeland Security, State of Nebraska Office of Emergency Management Agency, 97.039, DR‐4420‐NE‐0017 Hazard Mitigation Grant Program Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Certain line items in the reports submitted for the quarters ended 3/31/2024 and 6/30/2024 contained costs from the incorrect period. Cause: The District utilized the “Job Analysis Report” and was unaware the report contained costs that were from the incorrect period. Effect: The District’s control process and procedures did not detect or correct the errors. Questioned Costs: No questioned costs over $25,000. Context/Sampling: Nonstatistical sampling was used. There were three quarterly reports submitted throughout the fiscal year. As such, three reports were selected for testing. Key line items were identified within the reports for testing. Repeat Finding form Prior Year: Yes, prior year finding 2023‐004. Recommendation: We recommend the District review the process surrounding the data utilized to put together the quarterly reports submitted to ensure the correct amounts are used and are properly supported. Views of Responsible Officials: Management agrees with the finding.

Department of Homeland Security, State of Nebraska Office of Emergency Management Agency, 97.039, DR‐4420‐NE‐0017 Hazard Mitigation Grant Program Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule. Condition: The District does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the District meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the District would not be able to draft a complete and accurate schedule. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding form Prior Year: Yes, prior year finding 2023‐002. Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the District is aware of this condition for financial reporting requirements relating to the District’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Department of Homeland Security, State of Nebraska Office of Emergency Management Agency, 97.039, DR‐4420‐NE‐0017 Hazard Mitigation Grant Program Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Certain line items in the reports submitted for the quarters ended 3/31/2024 and 6/30/2024 contained costs from the incorrect period. Cause: The District utilized the “Job Analysis Report” and was unaware the report contained costs that were from the incorrect period. Effect: The District’s control process and procedures did not detect or correct the errors. Questioned Costs: No questioned costs over $25,000. Context/Sampling: Nonstatistical sampling was used. There were three quarterly reports submitted throughout the fiscal year. As such, three reports were selected for testing. Key line items were identified within the reports for testing. Repeat Finding form Prior Year: Yes, prior year finding 2023‐004. Recommendation: We recommend the District review the process surrounding the data utilized to put together the quarterly reports submitted to ensure the correct amounts are used and are properly supported. Views of Responsible Officials: Management agrees with the finding.