Audit 378165

Allowable Costs/Cost Principles U.S. Department of Treasury/Passed Through State of Nevada Department of Education and Nevada State Public Charter School Authority (SPCSA) Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds – AB495 (COVID-19) Award Date – 7/1/2022–12/31/2024 Criteria – The grant award budget included expenditures for salaries and retirement fringe benefits. Grant terms specify that recipients may use funds as outlined in the approved budget, and any changes to budget line items require prior approval from the grantor. Condition – The School charged $83,907 in contracted services to the grant; however, the approved grant budget did not include any allocation for contracted services. Cause – Due to an employment shortage, the School engaged individuals through a staffing agency to perform duties funded by the grant. Effect or Potential Effect – Although in December 2025 the grantor determined that the $83,907 in contracted services was allowable, the School did not obtain prior approval before incurring the expenditure. This created a compliance risk, including the potential for questioned costs and loss of funding, had the grantor determined the costs were unallowable. Questioned Costs – None reported. Recommendation – We recommend that the School obtain prior written approval from the grantor for any expenditures not included in the approved grant budget before incurring such costs. Repeat Finding – No. Views of Responsible Officials and Planned Corrective Actions – Management will ensure that submitted costs for reimbursement are in accordance with the approved grant budget. If an update to the budget is necessary, management will ensure the budget amendment is approved prior to submitting for reimbursement.