Audit 415536

Department of the Treasury Passed through Nevada Housing Division, Department of Business and Industry Federal Financial Assistance Listing 21.027 Award Number SLFRP2634 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Immaterial Instance of Noncompliance and Significant Deficiency in Internal Control over Compliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement policies required. Condition – The Organization did not properly procure three contracts in accordance with the procurement policy. Additionally, the Organization did not have proper procedures to ensure contracts include all required provisions. Cause – The Organization entered into three non-competitive contracts without following the proper procurement process for a contract of those sizes. Additionally, the Organization does not have controls adequately designed to ensure compliance with all the requirements for procurement are met. Effect – The Organization did not comply with Uniform Guidance relating to Procurement. Questioned Costs – $166,720 Context/Sampling – A nonstatistical sample of five contracts out of 20 total transactions were selected for testing. Of which, three of the five contracts are included in the finding. Repeat Finding from Prior Year(s) – No Recommendation – We recommend the Organization review their procurement policy and follow proper procedures for all contracts above the determined thresholds. We also recommend the Organization review all contracts to ensure they include all required provisions as outlined by Uniform Guidance. Views of Responsible Officials – There is no disagreement with the finding.