Audit 412006

U.S. Department of the Treasury Passed through the Nevada Housing Division 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: 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. Condition: Certain applicable provisions described in Appendix II to Part 200 were not included in contracts as required. Cause: The Foundation did not have adequate internal controls to ensure contracts under federal awards contained all of the applicable provisions. Effect: Contractors may not be aware of required terms and conditions. Questioned Costs: None noted. Context/sampling: A nonstatistical sample of 14 procurement transactions out of a population of 89 was selected for testing, including one contract totaling $3,500,000 subject to Appendix II to Part 200. Repeat Finding from Prior Year: Yes, 2024-001 Recommendation: We recommend the Foundation enhance internal controls to ensure contracts under federal awards contain all the applicable contract provisions. 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 COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control Over Compliance Grant Award Number: 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. Cause: The Foundation's procedures did not include 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. Repeat Finding from Prior Year: Yes, 2024-002 Recommendation: We recommend the Foundation enhance the internal controls to ensure quarterly financial reports are reviewed and approved. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.