March 26, 2025
Eide Bailly, LLP
Supervisor, Local Government & Finance
Reno, NV 89706
Dear Mr. Kurt Schlicker,
We have received and reviewed the audit report issued by your firm regarding our financial statements for the fiscal year ended June 30, 2024. We appreciate the thoroughness and profess...
March 26, 2025
Eide Bailly, LLP
Supervisor, Local Government & Finance
Reno, NV 89706
Dear Mr. Kurt Schlicker,
We have received and reviewed the audit report issued by your firm regarding our financial statements for the fiscal year ended June 30, 2024. We appreciate the thoroughness and professionalism demonstrated by your audit team throughout the process.
We acknowledge the critical importance of establishing and maintaining an effective system of internal control over compliance, including procurement, suspension, and debarment per Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) related to the Assistance to Firefighters Grant, 97.044. As such, we are committed to taking immediate corrective actions to address documented procurement procedures to reflect applicable state and local laws and regulations and to ensure that our District (as a non-federal entity) is prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. We have outlined below the specific steps we have already undertaken and will undertake:
1. Revise & Update Procurement Procedures:
a. Conduct a comprehensive review of current procurement procedures to identify gaps.
b. Update procurement policies to reflect the specific requirements under 2 CFR Part 200, including provisions related to debarment and suspension.
c. Ensure procurement procedures address compliance with state and local laws and regulations.
d. Implement an approval process to review and validate any new procedures before they are finalized.
2. Staff Training & Capacity Building:
a. We hired additional staff in January 2025 experienced in federal awards and compliance to oversee our grant administration. We have assigned dedicated staff with clear roles and responsibilities to manage and comply with grant requirements, including
application, compliance, and reporting, ensuring that all parties understand their obligations and deadlines.
b. We will provide training for relevant staff involved on updated procedures, including specific training on 2 CFR Part 200 for procurement standards, and suspension/debarment requirements.
c. Provide regular refresher training to ensure ongoing compliance and awareness of updates to federal, state, and local laws.
3. Strengthen Internal Monitoring and Oversight Mechanisms:
a. Implement periodic audits of procurement and subaward transactions to ensure compliance with updated policies and procedures.
b. Assign a compliance officer to monitor the effectiveness of the suspension and debarment verification process.
c. Develop a reporting system for non-compliance or procurement violations, and establish a corrective action protocol to address any identified issues
d. Regularly review compliance metrics and audit reports with senior management.
4. Responsible Parties and Accountability to be designated:
a. Chief Procurement Officer (CPO): Responsible for overseeing the update of procurement procedures and ensuring compliance with state, local, and federal regulations.
b. Compliance Officer: Responsible for monitoring suspension and debarment verification, conducting audits, and overseeing staff training.
c. Procurement Staff: Responsible for implementing updated procedures and ensuring all contractors and subawardees are verified for suspension or debarment status.
d. Grant Administrator: Responsible for ensuring that federal grant expenditures comply with applicable procurement regulations and internal controls.
By implementing these corrective actions, we are committed to addressing the material weakness in compliance, including procurement, suspension, and debarment. These steps will enhance the accuracy, reliability, and transparency of our financial reporting and improve our internal controls over our financial reporting.
The District is committed to ensuring compliance with all applicable federal, state, and local regulations governing procurement, suspension, and debarment under all federal awards, to include the Assistance to Firefighters Grant Program. Through the implementation of these corrective actions, we will strengthen our internal controls, ensure accountability, and uphold the integrity of federal funds. These steps will be monitored continuously to ensure that the corrective actions are successfully implemented and sustained.
We appreciate your insights and recommendations provided during the audit process and welcome any additional guidance or support your firm can offer as we work to address the identified weaknesses.
Should you have any questions or require further information, please do not hesitate to contact me.
Thank you for your continued partnership and support.
Sincerely,
Jackie Signorelli
CFO