Audit 366274

U.S. Department of the Treasury Passed through the Nevada Housing Division, City of Reno COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Procurement, Suspension and Debarment Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP0309, SLFRP2634. 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 contracts contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Non-Federal entities are prohibited from contracting with parties that are suspended or debarred under covered transactions. Condition: Certain applicable provisions described in Appendix II to Part 200 were not included in contracts as required. Procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction. Cause: The Foundation did not have adequate internal controls to ensure contracts under federal awards contained all of the applicable provisions or to ensure procedures were followed to verify an entity was not suspended or debarred prior to entering into a covered transaction. Effect: Contractors may not be aware of required terms and conditions. A covered transaction may be entered into with an entity that is suspended or debarred. Questioned Costs: None noted. Context/sampling: A nonstatistical sample of 15 procurement transactions out of a population of 98 was selected for testing, including two contracts totaling $3,500,000 subject to Appendix II to Part 200. Two vendor contracts selected did not contain the applicable provisions required by Appendix II to Part 200 and were missing procedures to verify the vendor was not suspended or debarred. Report Finding from Prior Year: Yes , 2023-003 Recommendation: We recommend the Foundation enhance internal controls to ensure all contracts under federal awards contain the applicable contract provisions and to ensure procedures are followed to verify an entity was not suspended or debarred prior to entering into a covered transaction. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.

U.S. Department of the Treasury Passed Through the Nevada Housing Division, City of Reno COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP0309, SLFRP2634. 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: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports and inaccurate information was reported to the federal awarding agency. Cause: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Effect: Inaccurate information could be reported to the federal awarding agency. Questioned Costs: None noted. Context/sampling: Two quarterly financial reports out of a population of four was selected for testing. Report Finding from Prior Year: Yes, 2023-004 Recommendation: We recommend the Foundation enhance the internal controls to ensure quarterly financial reports are reviewed and approved and accurate information is included in the reports. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.

U.S. Department of the Treasury Passed through the Nevada Housing Division, City of Reno COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Procurement, Suspension and Debarment Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP0309, SLFRP2634. 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 contracts contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Non-Federal entities are prohibited from contracting with parties that are suspended or debarred under covered transactions. Condition: Certain applicable provisions described in Appendix II to Part 200 were not included in contracts as required. Procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction. Cause: The Foundation did not have adequate internal controls to ensure contracts under federal awards contained all of the applicable provisions or to ensure procedures were followed to verify an entity was not suspended or debarred prior to entering into a covered transaction. Effect: Contractors may not be aware of required terms and conditions. A covered transaction may be entered into with an entity that is suspended or debarred. Questioned Costs: None noted. Context/sampling: A nonstatistical sample of 15 procurement transactions out of a population of 98 was selected for testing, including two contracts totaling $3,500,000 subject to Appendix II to Part 200. Two vendor contracts selected did not contain the applicable provisions required by Appendix II to Part 200 and were missing procedures to verify the vendor was not suspended or debarred. Report Finding from Prior Year: Yes , 2023-003 Recommendation: We recommend the Foundation enhance internal controls to ensure all contracts under federal awards contain the applicable contract provisions and to ensure procedures are followed to verify an entity was not suspended or debarred prior to entering into a covered transaction. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.

U.S. Department of the Treasury Passed Through the Nevada Housing Division, City of Reno COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP0309, SLFRP2634. 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: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports and inaccurate information was reported to the federal awarding agency. Cause: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Effect: Inaccurate information could be reported to the federal awarding agency. Questioned Costs: None noted. Context/sampling: Two quarterly financial reports out of a population of four was selected for testing. Report Finding from Prior Year: Yes, 2023-004 Recommendation: We recommend the Foundation enhance the internal controls to ensure quarterly financial reports are reviewed and approved and accurate information is included in the reports. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.