Corrective Action Plans

Finding 369910 (2022-012)

Material Weakness 2022

Vermont Association for Mental Health and Addiction Recovery, INC

VT

Questioned Costs Allowable Costs / Cost Principles Cash Management

Recommendation: We recommend the Company should implement a timesheet protocol for all employees to complete on a weekly basis. Action Taken: We agree with the recommendation, we have hired a CPA as third-party bookkeeper; the bookkeeper has implemented a timesheet program for all time allocated to...

Recommendation: We recommend the Company should implement a timesheet protocol for all employees to complete on a weekly basis. Action Taken: We agree with the recommendation, we have hired a CPA as third-party bookkeeper; the bookkeeper has implemented a timesheet program for all time allocated to grants for each employee to follow.

View Audit 291395 Questioned Costs: $1

Finding 369908 (2022-010)

Material Weakness 2022

Vermont Association for Mental Health and Addiction Recovery, INC

VT

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Recommendation: We recommend procedures should be implemented requiring approval of invoices by a senior member of management or member of the board of directors prior to payment. Invoices or other documentation to support expenditures should be retained. Action Taken: We agree with the recommenda...

Recommendation: We recommend procedures should be implemented requiring approval of invoices by a senior member of management or member of the board of directors prior to payment. Invoices or other documentation to support expenditures should be retained. Action Taken: We agree with the recommendation, on November 14, 2022, the Vermont Association for Mental Health and Addition Recovery, Inc, approved a new Internal Controls Policy and Procedures document. Under the new policy, roles and responsibilities for the board of directors, the executive director, and all employees with respect to payments, authorization, and records management.

View Audit 291395

Finding 369902 (2022-004)

Material Weakness 2022

Vermont Association for Mental Health and Addiction Recovery, INC

VT

Allowable Costs / Cost Principles Cash Management

Recommendation: We recommend the Company start properly tracking hours worked by employees per grant on a weekly basis. The Company needs to start retaining audit evidence for review of independent audits and grant compliance. Action Taken: We agree with the recommendation. We have moved to a times...

Recommendation: We recommend the Company start properly tracking hours worked by employees per grant on a weekly basis. The Company needs to start retaining audit evidence for review of independent audits and grant compliance. Action Taken: We agree with the recommendation. We have moved to a timesheet allocation on a weekly basis which is reviewed and tracked by the 3rd party bookkeeper. The 3rd party bookkeeper now requests all invoices before a check for reimbursement to be released.

View Audit 291395

Finding 369775 (2022-009)

Significant Deficiency 2022

City of Warren

MN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Contact Person – Shannon Mortenson, City Administrator Corrective Action Plan – The City will establish a policy to ensure all federal expenditures are approved. Completion Date - January 31, 2024

View Audit 291301

Finding 369480 (2022-003)

Significant Deficiency 2022

Tennessee Immigrant and Refugee Rights Coalition

TN

Allowable Costs / Cost Principles

Management accepts the recommendation. Corrective Action Taken: The organization has since implemented additional controls to ensure costs are allowable per grant agreement and compliance supplement by moving all timesheet tracking to ADP, a Professional Employer Organization (PEO), that requires su...

Management accepts the recommendation. Corrective Action Taken: The organization has since implemented additional controls to ensure costs are allowable per grant agreement and compliance supplement by moving all timesheet tracking to ADP, a Professional Employer Organization (PEO), that requires supervisor oversight and documented approval of all timesheets before payroll. After supervisors approve hours, the finance manager will ensure expenses are allocated based on the time allocated in the timesheets and the individual’s supervisor will review individual payroll expenses to ensure accuracy. The senior operations director will then review and approve all expenses before paychecks are issued. As a result of the transition from timesheet spreadsheets for part-time employees to ADP’s timesheet tracking with required supervisor approval documentation in October 2022 for every employee and added payroll expense approval procedures, we do not anticipate an issue with allowable cost determination moving forward. Anticipated Completion Date: January 31, 2024

View Audit 290698

Finding 369474 (2022-001)

Significant Deficiency 2022

Jackson Park Hospital Foundation

IL

Questioned Costs Allowable Costs / Cost Principles Reporting

Recommendation: We recommend the Hospital design controls to ensure documentation is completed timely and sufficiently on how costs are necessary to respond to COVID-19. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management has identified that th...

Recommendation: We recommend the Hospital design controls to ensure documentation is completed timely and sufficiently on how costs are necessary to respond to COVID-19. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management has identified that the Hospital has more than a sufficient amount of lost revenues related to COVID-19 to offset this difference. Action taken in response to finding: The Hospital will ensure that controls are put into place to capture Covid specific costs in accordance with HHS guidelines. Name of the contact person responsible for corrective action: Barry Mandell, VP Special Projects. Planned completion date for corrective action plan: April 1, 2022

View Audit 290693 Questioned Costs: $1

Finding 367424 (2022-006)

Material Weakness 2022

Municipality of Maunabo

PR

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking § 200.303

The Municipality's Finance Department staff will be instructed to safeguard properly, all the fiscal supporting documents related to the disbursement process. In addition, we will improve our procedures and internal control controls over the filing and safeguarding of documents, payment vouchers and...

The Municipality's Finance Department staff will be instructed to safeguard properly, all the fiscal supporting documents related to the disbursement process. In addition, we will improve our procedures and internal control controls over the filing and safeguarding of documents, payment vouchers and all related supporting documentation of the disbursement cycle.

View Audit 290429

Finding 367191 (2022-001)

Material Weakness 2022

Real Journey Academies INC

CA

Questioned Costs Allowable Costs / Cost Principles

The Organization has developed an action plan to conduct time studies on staff working in program areas supported with federal funding resources. Staff training will be provided to the departments on proper payroll documentation. Time studies will be conducted twice annually. Proper documentation of...

The Organization has developed an action plan to conduct time studies on staff working in program areas supported with federal funding resources. Staff training will be provided to the departments on proper payroll documentation. Time studies will be conducted twice annually. Proper documentation of allowable payroll expenditures will be submitted monthly. Signed documents will be retained on file by the department.

View Audit 290309 Questioned Costs: $1

Finding 367180 (2022-065)

Material Weakness 2022

State of Nevada

NV

Reporting Allowable Costs / Cost Principles Material Weakness § 200.303

Finding 2022-065: Reporting. The Nevada Division of Public and Behavioral Health (DPBH) did not maintain underlying documentation to support the amounts reported in annual and midyear Performance Progress Reports (PPR). Nevada Division of Public and Behavioral Health response: The Nevada Division of...

Finding 2022-065: Reporting. The Nevada Division of Public and Behavioral Health (DPBH) did not maintain underlying documentation to support the amounts reported in annual and midyear Performance Progress Reports (PPR). Nevada Division of Public and Behavioral Health response: The Nevada Division of Public and Behavioral Health accepts this finding and will initiate corrective action as described below. Corrective Action: The Bureau of Behavioral Health, Wellness, and Prevention (BBHWP) developed a document retention system to ensure subgrantee grant reports and supporting documentation is saved and is easily accessible for each award period. This new system will remove unnecessary barriers for accessing reports moving forward. Date of Completion: BBHWP: December 2023 Responsible Party: BBHWP State Opioid Response Unit: Breanne Van Dyne, Health Program Manager II If you have any questions, please contact Kitty DeSocio, Administrative Services Officer IV at 775-684-3481 or by email at kdesocio@health.nv.gov.

View Audit 290300

Finding 367172 (2022-056)

Significant Deficiency 2022

State of Nevada

NV

Allowable Costs / Cost Principles

Program: U.S. Department of Health and Human Services Foster Care - Title IV-E, CFDA 93.658 Corrective Action Plan Finding Number: 2022-056 Finding: Allocation methods used in cost allocation did not agree to the approved cost allocation plan and allocation statistics did not agree to underlying sup...

Program: U.S. Department of Health and Human Services Foster Care - Title IV-E, CFDA 93.658 Corrective Action Plan Finding Number: 2022-056 Finding: Allocation methods used in cost allocation did not agree to the approved cost allocation plan and allocation statistics did not agree to underlying support. Corrective Action Taken or To Be Taken: Quarterly Cost Allocation procedures were updated to expand the validation process to confirm the most recent Cost Allocation Plan narrative matches AlloCAP, requires signature review confirmation, and, if a discrepancy is found, the Cost Allocation Plan Narrative is updated and submitted for approval. The Cost Allocation Plan will be updated and submitted for approval. Staff will be trained on the procedures. If already taken, date of completion: Quarterly Cost Allocation Procedures were updated July 19, 2022. If to be taken, estimated date of completion: Staff will be trained on the updated procedures and the Cost Allocation Plan Narrative will be updated and submitted for approval by December 31, 2024. Agency Response Does the Agency agree with this finding? The Nevada Division of Child and Family Services agrees with this finding. If no or partial, please explain reason(s) why: Additional comments: Prior year finding 2021-054 Division Responsible for Corrective Action Name, Title: Heather Bugg, Administrative Services Office IV Address: 4126 Techonology Way City, State, Zip Code: Carson City, NV 89706 Phone Number: 775-684-4462 Email: hbugg@dcfs.nv.gov Reviewed and Approved Tiffany Greenameyer, Deputy Administrator

View Audit 290300

Finding 367163 (2022-048)

Material Weakness 2022

State of Nevada

NV

Allowable Costs / Cost Principles Eligibility Material Weakness § 200.303

U.S. Department of Health and Human Services Low Income Home Energy Assistance, 93.568 Finding Number: 2022-048 – Eligibility Material Weakness in Internal Control over Compliance Finding: Supervisor case reviews were not performed in accordance with the State Plan. Corrective Action Taken or To Be ...

U.S. Department of Health and Human Services Low Income Home Energy Assistance, 93.568 Finding Number: 2022-048 – Eligibility Material Weakness in Internal Control over Compliance Finding: Supervisor case reviews were not performed in accordance with the State Plan. Corrective Action Taken or To Be Taken: During the review period there were vacancies in both supervisory positions in the Energy Assistance Program. The Division filled these positions during the review period. The supervisory case reviews began for July 2022. In addition, the LIHEAP State Plan has been amended to allow additional staff members to review case work for new staff. The changes were approved at the June 29, 2023, Public Hearing. These changes have been included in the FFY 2024 LIHEAP State Plan to address staff shortages if they arise again. If to be taken, estimated date of completion Corrective Actions are already in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Maria Wortman-Meshberger, Chief Employment and Support Services Phone Number: 775-684-0506 Email: mrwortman@dwss.nv.gov Reviewed and Approved Robert H. Thompson, Administrator Date December 19, 2023

View Audit 290300

Finding 367162 (2022-047)

Significant Deficiency 2022

State of Nevada

NV

Cash Management Allowable Costs / Cost Principles Reporting § 200.303

Finding number: 2022-047 – Cash Management Significant Deficiency in Internal Control over Compliance Finding: A reimbursement request was not reviewed and approved by an individual independent of the preparation of the request. Corrective Action Take or To Be Taken: The Division has added addition...

Finding number: 2022-047 – Cash Management Significant Deficiency in Internal Control over Compliance Finding: A reimbursement request was not reviewed and approved by an individual independent of the preparation of the request. Corrective Action Take or To Be Taken: The Division has added additional internal controls to ensure the separation between reimbursement requestors and approvers, in addition to providing adequate guidance to all new staff involved in cash management on the internal control policy. If to be taken, estimated date of completion: These procedures were implemented July 1, 2023. Agency Response Does the Agency agree With finding: Yes If No or Partial, please Explain reason(s) why: Individual Responsible for Corrective Action Plan: Name, Title: Brooke Barlow, Chief of Fiscal Phone Number: 775-684-0659 Email: bebarlow@dwss.nv.gov Reviewed and Approved: Crystal Buscay, CFO

View Audit 290300

Finding 367123 (2022-046)

Significant Deficiency 2022

State of Nevada

NV

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Finding #2022-046 – Education Stabilization Fund, CFDA 84.425 Other – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure payments to subrecipients are recorded to the de...

Finding #2022-046 – Education Stabilization Fund, CFDA 84.425 Other – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure payments to subrecipients are recorded to the designated subrecipient general ledger accounts within the chart of accounts. NDE Response NDE agrees with this finding. Corrective Action NDE shall develop a comprehensive Policy and Procedure (1.15 SEFA Reporting) documenting the process for the development, review, and finalization of all SEFA reports. A checklist detailing the chain of review shall also be implemented to track the review and approval process of federal reports prior to submission. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further revise existing internal controls to expand the controls applied as it relates to verifications and reviews/approvals. The Office of Division Compliance will collaborate with the Office of Fiscal Operations to develop and finalize these documents. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance and Fiscal Operations; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 290300

Finding 367120 (2022-043)

Material Weakness 2022

State of Nevada

NV

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding #2022-043 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required informati...

Finding #2022-043 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Efforts to ensure consistent business practices within the Student Investment Division are underway. Corrective Action NDE shall develop a comprehensive Policy and Procedure (1.9 Title I ESEA MOE) documenting the process for the development, review, and finalization of the MOE report. Supplemental to the Policy and Procedure, NDE shall develop a Business Rule which clearly crosswalks source data to reporting outcomes. This business rule shall integrate principles from NDE’s Records Management Program, to include clear file architecture for supporting documentation. A checklist detailing the chain of review shall also be implemented to track the review and approval process of federal reports prior to submission. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with the Office of District Support Services to develop and finalize these documents. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of District Support Services and Division Compliance; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 290300

Finding 367118 (2022-042)

Material Weakness 2022

State of Nevada

NV

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles

Finding #2022-042 – Education Stabilization Fund, CFDA 84.425 Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure earmarking requirements are initially met and im...

Finding #2022-042 – Education Stabilization Fund, CFDA 84.425 Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure earmarking requirements are initially met and implement internal controls to ensure ongoing compliance is monitored. NDE Response At the time of this Corrective Action Plan, NDE is able to demonstrate appropriate earmarking for summer enrichment and after-school programs. Related to earmark monitoring, upon receipt of a grant award, NDE utilizes a Notice of Incoming Funding Form pursuant to Policy and Procedure 10.2 Funding Opportunities; this form and corresponding policy include information regarding the grant funding and support whether an earmarking spreadsheet would be necessary. Corrective Action NDE shall develop a comprehensive Policy and Procedure (10.12 Match, Maintenance of Effort, and Earmarking) documenting the earmarking process, to include monitoring; additional information shall be added to 10.1 Grant Applications and 10.2 Funding Opportunities to ensure smooth establishment of necessary forms related to the funding requirements. Training on these Policies shall be provided across the agency. NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with the Office of School and Student Supports to develop and finalize these documents. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance; Student Achievement Division, Office of Student and School Supports; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 290300

Finding 367113 (2022-036)

Material Weakness 2022

State of Nevada

NV

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Audit Finding 2022-036: U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: The Nevada Governor’s Finance Office (GFO) did not have adequate internal controls to ensure payments to subrecipients were appropriately reported on the SEFA. Recommendation: Rec...

Audit Finding 2022-036: U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: The Nevada Governor’s Finance Office (GFO) did not have adequate internal controls to ensure payments to subrecipients were appropriately reported on the SEFA. Recommendation: Recommend the GFO enhance internal controls to ensure payments to subrecipients are appropriately reported on the SEFA. Agency Response: Does the agency Agree with Finding: Yes Additional Comments: None Corrective Action: The GFO will update internal controls related to SEFA reporting to ensure payments to subrecipients are appropriately reported. Date of Completion: June 30, 2024 Department or Agency Responsible for Corrective Action Plan: Agency: Nevada Governor’s Finance Office Contract: Brenda Berry, ASO 200 Musser Street, Ste 200 Carson City, NV 89703 Signature: Amy Stephenson, Director

View Audit 290300

Finding 367110 (2022-033)

Material Weakness 2022

State of Nevada

NV

Allowable Costs / Cost Principles Material Weakness Reporting

Audit Finding 2022-033: U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: The maximum allowable expenditures to be spent on government services pursuant to lost public sector revenue was inaccurate. Recommendation: Recommend the Nevada Governor’s Finance...

Audit Finding 2022-033: U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: The maximum allowable expenditures to be spent on government services pursuant to lost public sector revenue was inaccurate. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure the revenue loss calculation is prepared in accordance with the governing requirements. Agency Response: Does the agency Agree with Finding: Yes Additional Comments: Lost revenue was calculated under the Interim Final Rule, which was the guidance available at the time, and was not calculated using the Final Rule’s definition of State revenue. Corrective Action: The GFO will re-calculate revenue loss on a fund-by-fund basis rather than relying on the Census Bureau's Annual Survey of State and Local Government Finances. The Interim Final Rule requested that data used in the calculation must come from the Census Bureau's Annual Survey of State and Local Government Finances, and the revenue used in the calculation must come from the State's own sources. The auditor's recalculation used a microdata file from the State Controller's Office, re-calculating revenue on a fund-by-fund basis rather than relying on the Census Bureau's Annual Survey of State and Local Government Finances. Additionally, the Final Rule's definition of revenue from own sources is more expansive of revenue sources than the Interim Final Rule’s guidance. Date of Completion: Estimated to be completed by January of 2024 Department or Agency Responsible for Corrective Action Plan: Agency: Nevada Governor’s Finance Office Contract: Brenda Berry 200 Musser Street, Ste 200 Carson City, NV 89703 Signature: Amy Stephenson, Director

View Audit 290300

Finding 367107 (2022-030)

Significant Deficiency 2022

State of Nevada

NV

Reporting Allowable Costs / Cost Principles Significant Deficiency § 200.303

Audit Finding: 2022-030 Homeowner Assistance Fund: 21.026 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no evidence that the one-time interim report was reviewed by an individual separate from the preparer. Recommendation: Implement internal controls to ens...

Audit Finding: 2022-030 Homeowner Assistance Fund: 21.026 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no evidence that the one-time interim report was reviewed by an individual separate from the preparer. Recommendation: Implement internal controls to ensure compliance with subrecipient monitoring requirements. Agency Response: The Division agrees with the finding. The Division would like to note, and be given consideration for, the substantive fact of the context of the time period in a pandemic, a once in a lifetime crisis that was impacting daily work and personal lives of all Nevadans, including Division staff. Corrective Action: The Division will establish an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business. The internal audit and compliance committee will be responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. This will include ensuring policies and procedures are followed in which reports submitted to federal funders are reviewed by an individual independent of the preparation of the reports. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

View Audit 290300

Finding 367103 (2022-025)

Material Weakness 2022

State of Nevada

NV

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Audit Finding 2022-025: U.S. Department of the Treasury Coronavirus Relief Fund, 21.019 Finding: Assistance listing numbers were not communicated at disbursement and there was no evidence that subrecipient audit reports were monitored. Recommendation: Recommend the Nevada Governor’s Finance Offic...

Audit Finding 2022-025: U.S. Department of the Treasury Coronavirus Relief Fund, 21.019 Finding: Assistance listing numbers were not communicated at disbursement and there was no evidence that subrecipient audit reports were monitored. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure Financial Progress Reports are prepared in accordance with governing requirements. Agency Response: Does the agency Agree with Finding: Yes Additional Comments: None Corrective Action: The corrective action to add the assistance listing number to disbursements was completed approximately January of 2023. The GFO has contracted with a vendor to complete all monitoring of subrecipients. Date of Completion: Estimated completion March 2024. Department or Agency Responsible for Corrective Action Plan: Agency: Nevada Governor’s Finance Office Contract: Brenda Berry 200 Musser Street, Ste 200 Carson City, NV 89703 Signature: Amy Stephenson, Director

View Audit 290300

Finding 367103 (2022-025)

Material Weakness 2022

State of Nevada

NV

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding #: 2022-025 – Material Weakness in Internal Control Over Compliance Condition: Assistance listing numbers were not communicated at disbursement Cause: Adequate internal controls were not in place to ensure compliance Effect: Noncompliance at the subrecipient level may occur Corrective Action...

Finding #: 2022-025 – Material Weakness in Internal Control Over Compliance Condition: Assistance listing numbers were not communicated at disbursement Cause: Adequate internal controls were not in place to ensure compliance Effect: Noncompliance at the subrecipient level may occur Corrective Action In February 2023, Court accounting staff were made aware of the need to include the CFDA # on payments made with federal funds and began including the CFDA # as part of the Line Description for all payables transmitted to the State, which was then included on the subrecipients’ remittance advices. If you have any questions, please contact Casandra Vanzura, Chief Accountant, at cvanzura@nvcourts.nv.gov. Sincerely, Todd Myler Chief Financial Officer

View Audit 290300

Finding 367099 (2022-021)

Material Weakness 2022

State of Nevada

NV

Internal Control / Segregation of Duties Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

Finding 2022-021 Investigations performed by the UI BAM supervisor or senior investigator are not reviewed by someone other than the investigator. In addition, completion of cases and timely data entry requirements were not met. A nonstatistical sample of 60 completed BAM cases out of a population ...

Finding 2022-021 Investigations performed by the UI BAM supervisor or senior investigator are not reviewed by someone other than the investigator. In addition, completion of cases and timely data entry requirements were not met. A nonstatistical sample of 60 completed BAM cases out of a population of 734 was selected for testing. The investigator and reviewer were the same person for 17 of the cases tested. In addition, a time lapse report of case completion was examined for paid claims accuracy. Of these investigations, 85.19% of the cases were completed within 90 days, rather than the 95% required. In addition, the total completion was 92.12% complete, rather than the 98% completion required. Recommendation We recommend the Department implement internal controls to ensure appropriate segregation of duties on all BAM investigations and to ensure timeliness requirements are met. Nevada DETR’s Response The Employment Security Division’s Unemployment Insurance Support Services (UISS) recognizes the importance of internal controls for a system of checks and balances to ensure no one person has control over all parts of BAM investigations, and to ensure investigation timeliness. Background: BAM timeliness has been impacted since 2020 due to many factors that include but are not limited to significant staff turnover (i.e., retirement, promotions, and recruitment/retainment of qualified staff). Historically, the BAM supervisor PCN 5089 has been tasked with training and reviewing new staff work and activities, which resulted in experienced investigators’ work not being reviewed in attempts to meet timeliness on other BAM cases. Nevada DETR ESD UISS’ Corrective Action Plan: Attached (ATTACHMENT A) is DETR’s Benefit Accuracy Measurement (BAM) Segregation of Duties Internal Control. Estimated Date of Completion: COMPLETED Contact Person: Kristine K. Nelson, ESD Administrator, DETR/ESD (775)684-3828, kknelson@detr.nv.gov

View Audit 290300

Finding 366887 (2022-002)

Significant Deficiency 2022

Del Norte Child Care Council

CA

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.512

Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the single audit not being completed and submitted to the Federal Audit Clearinghouse be the due date. As of the audit report date, the Council has engaged an outside accounting firm to ...

Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the single audit not being completed and submitted to the Federal Audit Clearinghouse be the due date. As of the audit report date, the Council has engaged an outside accounting firm to provide financial oversight. Action: Develop procedures to ensure required single audits are completed and submitted to the Federal Audit Clearinghouse by the 9-month due date. Due Date: 3/1/23 Staff: Don Reynolds, contracted CFO Mike Michelon, Interim Executive

View Audit 290035

Finding 366885 (2022-001)

Material Weakness 2022

Del Norte Child Care Council

CA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the cost allocation formulas and leadsheet account reconciliations not being updated on a continuing basis as reimbursement requests were being to the California Department of Social Ser...

Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the cost allocation formulas and leadsheet account reconciliations not being updated on a continuing basis as reimbursement requests were being to the California Department of Social Services. Management believes that all key accounting positions have since been filled by qualified personnel. A formal close process and reconciliation of all balance sheet accounts and indirect cost allocations each month will ensure reimbursement requests are complete and accurate. Process documentation is also being prepared to help personnel in the accounting department follow proper control procedures. Action: Develop and document process for drawdown calculation and year end reconciliation to accounting records. Due Date: 3/1/23 Staff: Don Reynolds, contracted CFO

View Audit 290035

Finding 366854 (2022-009)

Material Weakness 2022

Minnesota Math and Science Academy

MN

Allowable Costs / Cost Principles

Education Stabilization Fund – Assistance Listing No. 84.425 Recommendation: CliftonLarsonAllen LLP (CLA) recommends the school has proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member review the transactions in detail...

Education Stabilization Fund – Assistance Listing No. 84.425 Recommendation: CliftonLarsonAllen LLP (CLA) recommends the school has proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member review the transactions in detail and then getting approval from all board members. Explanation of disagreement with audit finding: The school doesn’t agree with this finding. There is no disagreement with the audit finding. Actions planned in response to the finding: The school uses Concept SIS for credit card transactions and ensures to use of it for all credit card receipts. The credit card receipts will be submitted thru Concept SIS for the principal’s approval. Once the approved receipt is received. The A/P manager enters it into accounting software and saves a copy of the documents to the Concept backup folder. The treasurer reviews the receipts and compares them with the credit card statements. Finally, a copy of the credit card statement is presented to the executive director and the board members by the treasurer. Name of the contact person responsible for corrective action: Stephen West, the School Director is the official responsible for ensuring corrective action. Planned completion date for a corrective action plan: June 30, 2024

View Audit 289920

Finding 366755 (2022-006)

Material Weakness 2022

South Bend Community School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.334 § 200.403 § 200.430

FINDING 2022-006 Finding Subject: COVID-19 - Education Stabilization Fund - Allowable Costs/Cost Principles Summary of Finding: Finding: Documentation for 3 employees was not available to verify the contract amounts. Recommendation: Documents be retained to support amounts paid. Contact Person Respo...

FINDING 2022-006 Finding Subject: COVID-19 - Education Stabilization Fund - Allowable Costs/Cost Principles Summary of Finding: Finding: Documentation for 3 employees was not available to verify the contract amounts. Recommendation: Documents be retained to support amounts paid. Contact Person Responsible for Corrective Action: Kareemah Fowler, Assistant Superintendent of Business and Finance Contact Phone Number and Email Address: (574) 393-6088; kfowler@sbcsc.k12.in.us Views of Responsible Officials: We disagree with the finding. Explanation and Reasons for Disagreement: While we agree that the single source document used by the State to validate a teacher’s contract was not available for 3 employees. We provided sufficient alternate documents that would allow the State to validate the contract amount being paid, and whether the proper employees were paid from or should have been paid from the Education Stabilization Funds. The documents provided sufficient data to support the questioned cost of $26,207 outlined in the finding. We will be working with our software vendor to rectify the glitch that prevented us from providing the documentation requested by the State for future audit. Description of Corrective Action Plan: We will be working with our software vendor to rectify the glitch that prevented us from providing the documentation requested by the State. Anticipated Completion Date: January 2024

View Audit 289747 Questioned Costs: $1

Corrective Action Plans

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