FAC Explorer

Audit 45043

FY End
2022-06-30
Total Expended
$6.14M
Findings
2
Programs
6
Organization: City of Fallon, Nevada (NV)
Year: 2022 Accepted: 2023-02-06
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46452 2022-002 Significant Deficiency - L
622894 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.81M Yes 1
20.205 Highway Planning and Construction $110,229 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $82,378 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $55,000 - 0
20.106 Airport Improvement Program $52,844 - 0
97.042 Emergency Management Performance Grants $28,083 - 0

Contacts

Name Title Type
VRSWHCKWFLJ5 Sean Richardson Auditee
7754235104 Teri Gage Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Fallon under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of Fallon, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the City of Fallon.

Finding Details

Finding 2022-002
2022-002 U.S. Department of Treasury Passed Through State of Nevada Governor?s Office of Economic Development COVID-19 Coronavirus State and Local Fiscal Recovery Fund CFDA 21.027 Reporting Significant Deficiency in Internal Control over Compliance and Non-compliance over Reporting Criteria: The OMB compliance supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by underlying accounting information or performance records, and are fairly presented in accordance with government requirements. The City of Fallon is required to submit the Project and Expenditure Report annually. The following are key line items on the Project and Expenditure report: current period obligation, cumulative obligation, current period expenditure, cumulative expenditure, subawards, and detailed information on loans issued. Condition: We noted the City incorrectly reported vendor expenditures as subawards when no subawards were granted by the City. Cause: The City did not have adequate internal controls for accurate reporting. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested. Repeat Finding from Prior Year: No. Recommendation: We recommend City of Fallon enhance internal controls to ensure its reports are accurate. Views of Responsible Officials: Management will closely review the Project and Expenditure Report User Guide to ensure future reports are in compliance.
Finding 2022-002
2022-002 U.S. Department of Treasury Passed Through State of Nevada Governor?s Office of Economic Development COVID-19 Coronavirus State and Local Fiscal Recovery Fund CFDA 21.027 Reporting Significant Deficiency in Internal Control over Compliance and Non-compliance over Reporting Criteria: The OMB compliance supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by underlying accounting information or performance records, and are fairly presented in accordance with government requirements. The City of Fallon is required to submit the Project and Expenditure Report annually. The following are key line items on the Project and Expenditure report: current period obligation, cumulative obligation, current period expenditure, cumulative expenditure, subawards, and detailed information on loans issued. Condition: We noted the City incorrectly reported vendor expenditures as subawards when no subawards were granted by the City. Cause: The City did not have adequate internal controls for accurate reporting. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested. Repeat Finding from Prior Year: No. Recommendation: We recommend City of Fallon enhance internal controls to ensure its reports are accurate. Views of Responsible Officials: Management will closely review the Project and Expenditure Report User Guide to ensure future reports are in compliance.