Audit 401310

U.S. Department of Treasury Pass-through Washoe County COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects grant award ARPA-SLFRF #48 included under assistance listing 21.027 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) states that entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. In addition, the Uniform Guidance section 200.303 provides that entities must establish and maintain effective internal control that provides reasonable 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: Procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction. Cause: Truckee Meadows Fire Protection District (the District) did not have adequate internal controls to ensure procedures were followed to verify a vendor was not suspended or debarred prior to entering into a covered transaction. Effect: A covered transaction may be entered into with a vendor that is suspended or debarred and not prevented or detected by the District. Questioned Costs: None Context/Sampling: No sampling was used. We tested the entire population of one covered transaction and the vendor was not verified for suspension and debarment prior to entering into a covered transaction. Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure vendors are not suspended or debarred prior to entering into covered transactions.

U.S. Department of Treasury Pass-through Washoe County COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects grant award ARPA-SLFRF #48 included under assistance listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. The grant award agreement states Truckee Meadows Fire Protection District (the District) shall submit a quarterly financial report identifying expenses for all cost categories detailed in the grant agreement. Condition: Certain amounts included in the reports submitted did not agree to underlying support and there was no review process in place over the reports submitted. Cause: The District did not have adequate internal controls to ensure Quarterly Financial Reports were reconciled to underlying supporting documentation. Effect: Inaccurate information was reported to the grantor. Questioned Costs: None Context/Sampling: No sampling was used. The entire population of two Quarterly Financial Reports was selected for testing. Neither report was reviewed prior to submission and variances were noted as follows: Reporting Period Ended September 30, 2024: Amount Reported Amount Supported by Underlying Documentation Reimbursement Amount $500,000 $0 Total Disbursed $500,000 $0 Total Spent $500,000 $0Amounts were not spent until November 2024 and were reimbursed/disbursed by the grantor in February 2025 (thus reported in the wrong quarter). Reporting Period Ended December 31, 2024: Amount Reported Amount Supported by Underlying Documentation Reimbursement Amount $500,000 $0 Total Disbursed $500,000 $0 Amounts were not reimbursed/disbursed by the grantor until February 2025 (thus reported in the wrong quarter). Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure Quarterly Financial Reports are reconciled to underlying supporting documentation and are reviewed prior to submission. Views of Responsible Officials: Truckee Meadows Fire Protection District agrees with this finding