Corrective Action Plans

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Hands of Healing Residential Treatment Center, Inc. respectfully submits the following correction action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Doeren Mayhew, 2600 North Loop West, Suite 600, Houston, TX 77092. The finding discussed belo...
Hands of Healing Residential Treatment Center, Inc. respectfully submits the following correction action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Doeren Mayhew, 2600 North Loop West, Suite 600, Houston, TX 77092. The finding discussed below from the Schedule of Findings and Questioned Costs (the schedule) for the year ended December 31, 2022 is numbered consistently with the number assigned in the schedule. Federal Award Finding 2022-001. Corrective Action Plan: Management understands that the annual audit must be filed within nine months of the organization's year-end and adhere to specific reporting requirements of federal grant contracts. Management has put additional processes in place within the chain of command to ensure that reports are submitted timely by the due date. Staff tasked with completing the reports will also be coached on the importance of drafting reports well in advance of the due date to give time for review, approval, and submittal by management. Contact Person Responsible for Corrective Action: Mr. Victor Weetly, President. Anticipated Completion Date: The corrective action plan will be completed by February 29, 2024.
Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants CFDA #10.766 Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve fund. Responsible Individuals: Tammy Larson, Chief Financi...
Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants CFDA #10.766 Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve fund. Responsible Individuals: Tammy Larson, Chief Financial Officer Corrective Action Plan: The reserve fund has been at the requirement for the past several years, so the only changes to the reserve has been the investment income on the accounts. Management will ensure a review separate from the preparer of the reconciliation for the program’s reserve fund is completed with formal documentation noting that the reserve account was reviewed. USDA also reviews the funds each year when the annual report requirements are filed with them. Anticipate Completion Date: 04/30/2023
Planned Corrective Action: We will expand our existing purchasing procedures into a fully documented procurement policy that meets the standards set out in 2 CFR Part 200. Name of Contact Person: Rachel Watson, Business Office Director/Controller, watson.rachel@occ.edu Anticipated completion date: J...
Planned Corrective Action: We will expand our existing purchasing procedures into a fully documented procurement policy that meets the standards set out in 2 CFR Part 200. Name of Contact Person: Rachel Watson, Business Office Director/Controller, watson.rachel@occ.edu Anticipated completion date: June 30, 2024
View Audit 290830 Questioned Costs: $1
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.
Views of responsible officials and planned corrective action: The Authority experienced significant turnover in employees during the year and as a result certain processes were not followed and source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired ...
Views of responsible officials and planned corrective action: The Authority experienced significant turnover in employees during the year and as a result certain processes were not followed and source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Executive Director who will implement the required safeguards and ensure that the Authority follows it’s the Regulatory Agreements related to the Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects and the HUD compliance requirements to remedy the aforementioned deficiencies. Leonard Spicer, Executive Director, is responsible for implementing this corrective action by December 31, 2023.
View Audit 290411 Questioned Costs: $1
Statement of Condition: The Department of Health and Human Services Appropriations Act 2022 restricts the amount of salary to Executive Level II of the Federal Executive pay scale for a full time 12 months total compensation for the grant period from March 2022 to February 2023. Correction Action P...
Statement of Condition: The Department of Health and Human Services Appropriations Act 2022 restricts the amount of salary to Executive Level II of the Federal Executive pay scale for a full time 12 months total compensation for the grant period from March 2022 to February 2023. Correction Action Planned for 2022-006: The salary of our executive director has consistently adhered to established limits, and our Program and Director of Finance, underscoring the effectiveness of our internal controls, swiftly identified any anomaly. Anticipated Completion Date June 2023
View Audit 290336 Questioned Costs: $1
Statement of Condition: The Municipality entities must record in the electronic accounting system (Monet), supporting documents must comply with Non-Federal shares required. The documents presented by the Municipality from March 2021 to February 2023 as Non-Federal Share for $2,897,167 do not agree ...
Statement of Condition: The Municipality entities must record in the electronic accounting system (Monet), supporting documents must comply with Non-Federal shares required. The documents presented by the Municipality from March 2021 to February 2023 as Non-Federal Share for $2,897,167 do not agree with the recipient share presented in the Federal Financial Report sent to the Finance Management System on May 3, 2022, for $5,465,711. Correction Action Planned for 2022-007: The accounting team has been instructed to consistently record the monthly in-kind contributions in the Monet System, ensuring their inclusion in the Federal Financial Report. Contrary to the assertion that the reported contribution is inaccurate, we stand by the correctness of our records. To address any concerns, we invite you to request the amended Federal Financial Report, which will include a comprehensive reconciliation of the in-kind contribution with our meticulously maintained accounting books. We are committed to providing you with this information promptly and transparently. Anticipated Completion Date June 2023
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.
Finding 367178 (2022-063)
Significant Deficiency 2022
Finding 2022-063: Earmarking. The Division of Public and Behavioral Health (DPBH) did not have evidence of monitoring administrative, infrastructure development, data collection, and reporting costs to ensure they did not exceed the maximum allowable. Nevada Division of Public and Behavioral Health ...
Finding 2022-063: Earmarking. The Division of Public and Behavioral Health (DPBH) did not have evidence of monitoring administrative, infrastructure development, data collection, and reporting costs to ensure they did not exceed the maximum allowable. 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 tracking tool in the federal grant reconciliation to monitor BBHWP and the sub-recipients Administration Costs and Reporting Costs that is gathered from BBHWP expenses and monthly Requests for Reimbursements from sub-recipients. Data collection is requested from the Sub-Recipients on a quarterly basis to ensure that the data costs do not exceed the maximum allowable by the grant. Date of Completion: BBHWP: December 2023 Responsible Party: BBHWP State Opioid Response Unit: Theresa Callahan, Management Analyst 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.
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
Finding 367162 (2022-047)
Significant Deficiency 2022
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
CORRECTIVE ACTION PLAN FOR AUDIT FINDING AUDIT FINDING 2022-061 Finding: U.S. Department of Health and Human Services Children's Health Insurance Program (CHIP), 93.767 Medicaid Cluster: State Medicaid Fraud Control Units, 93.775; State Survey and Certification of Health Care Providers and Suppliers...
CORRECTIVE ACTION PLAN FOR AUDIT FINDING AUDIT FINDING 2022-061 Finding: U.S. Department of Health and Human Services Children's Health Insurance Program (CHIP), 93.767 Medicaid Cluster: State Medicaid Fraud Control Units, 93.775; State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, 93.777 Medical Assistance Program (Medicaid; Title XIX), 93.778 Eligibility Material Weakness in Internal Control over Compliance Title 42 Public Health section 435.403 State Residence provides that the State must provide Medicaid to eligible residents of the State, including residents who are absent from the State, except in cases where another state has determined that the person is a resident there for purposes of Medicaid. The Medicaid State Plan provides that the State has an eligibility determination system for data matching through the Public Assistance Reporting Information System (PARIS). The information that is requested is to be exchanged with states and other entities legally entitled to verify Title XIX applications and individuals eligible for covered Title XIX services consistent with applicable PARIS agreements. The State will transmit and receive data quarterly (February, May, August, and November). The State enrolls beneficiaries on a mandatory basis into managed care entities (managed care organizations and/or primary care case managers) in the absence of certain allowable waivers. The State contracts with managed care organizations and reimburses them for capitation payments. PARIS data was not utilized by the Division of Health Care Financing and Policy (DHCFP) or the Division of Welfare and Supportive Services (DWSS) to monitor residency changes to determine when managed care benefits needed to be terminated because the beneficiary was a resident of another state for Medicaid purposes. DHCFP and DWSS did not have internal controls in place to effectively communicate the PARIS data between the two agencies to ensure managed care benefits were terminated when appropriate. Individuals are enrolled in Medicaid (and CHIP) plans in multiple states and benefits are not being terminated timely. Therefore, the State of Nevada is paying capitation payments to managed care organizations, when the benefits should have been terminated. Projected questioned costs are $12,743,890 for Medicaid and $186,062 for CHIP. No sampling was used. The PARIS data was obtained and examined in total. The PARIS data included 56,892 participants with dual enrollment. Of those 56,892 participants, 9,722 participants were enrolled in another state after the State of Nevada. The projected questioned costs were estimated by performing the following: • Identifying individuals who enrolled in another state after they had enrolled in Nevada (termination date for Nevada). • Estimating a weighted average capitation payment based on demographics that determine the payment amount. • Applying the weighted average capitation payments from the termination date through June 30, 2022 to determine the total projected questioned costs. • The total projected questioned costs were then allocated between Medicaid and CHIP using participant counts in each plan between the ages of 0-18. Participants older than 18 were allocated to Medicaid. The allocated projected questioned costs were then multiplied by a weighted average Federal Medical Assistance Percentage (FMAP) to determine the final projected federal questioned costs. Recommendation: We recommend DHCFP and DWSS implement internal controls to effectively communicate the PARIS data between each other and to ensure managed care benefits are terminated when appropriate. Agency Response Does the Agency Agree with Finding?: Yes Additional Comments: None. Corrective Action Taken or To Be Taken Action: The Division is in the process of updating its policies and procedures for its Public Assistance Reporting Information System (PARIS) data matching process, which occurs on a quarterly basis (i.e., once every February, May, August, and November). Currently, the process is primarily a manual caseworker process conducted by caseworker staff at DWSS. However, in many states; this activity is an automated process and considered a program-integrity function of the Medicaid program rather than an eligibility function. Nevada agrees with this practice and intends to implement an automated process, while transitioning the PARIS data matching process to its program-integrity unit at the Division. To do this, the Division will be procuring a vendor to establish a Surveillance and Utilization Review section (SUR) data system, which will include the PARIS data matching process, with new federal funds from the American Rescue Plan Act (ARPA). DHCFP has started the Request for Proposal (RFP) process for this new SUR Data System. DHCFP anticipates a contract start date of January 1, 2024 and an estimated implementation date of December 31, 2024. By automating and streamlining this process in the future, Nevada Medicaid aims to increase the state's capacity to act more quickly on eligibility redeterminations that stem from a PARIS data match finding. In return, this will allow the program to adjust enrollment and payments to managed care plans, more quickly. This adjustment process is fully automated in the Division's Medicaid Management Information System (MMIS) which was certified by CMS in May of 2019. Date of Completion or Estimated Completion: December 31, 2024 Department or Agency Responsible for Corrective Action Plan Agency: Contact: Department of Healthcare Financing and Policy Russ Steele, Audit Manager 1000 E William St., Suite 110 Carson City, NV 89701 (775) 684-3609 rsteele@dhcfp.nv.gov Signature of Sandie Ruybalid, Deputy Administrator
View Audit 290300 Questioned Costs: $1
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care and Development Fund, 93.596 Finding Number: 2022-055 – Reporting Material Weakness in Internal Control over Compliance Finding: Title...
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care and Development Fund, 93.596 Finding Number: 2022-055 – Reporting Material Weakness in Internal Control over Compliance Finding: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.332 requires that: •Pass-through entities ensure every subaward includes certain information at the time of the subaward. •Pass-through entities evaluate each subrecipient’s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. Corrective Action Taken or To Be Taken: The Child Care and Development Fund (CCDF) has contracted with a CPA from My Office Staff to conduct subrecipient monitoring of all the Program’s subrecipients. Procedure is in place to ensure every subaward contains a Risk Assessment prior to final approval. Agency Response Does the Agency agree with finding: Yes Individual Responsible for Corrective Action Plan: Name, Title: Gary Long Phone Number: 775-684-0655 Email: gxlong@dwss.nv.gov Reviewed and Approved Crystal Buscay, CFO
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care and Development Fund, 93.596 Finding Number: 2022-054 – Reporting Material Weakness in Internal Control over Compliance and Material Non...
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care and Development Fund, 93.596 Finding Number: 2022-054 – Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: Affects all grant awards included under assistance listings 93.575 and CFDA 93.596 on the Schedule of Expenditures of Federal Awards. The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Corrective Action Taken or To Be Taken:DWSS is currently bringing FFATA reporting up to date. The Grant Procurement Officer has been assigned to enter federal grants following the necessary requirements. Procedures to overcome this finding will be authored and approved by leadership. If to be taken, estimated date of completion: The project’s anticipated completion date is July 1, 2024. Agency Response Does the Agency agree with finding: Yes Individual Responsible for Corrective Action Plan: Name, Title: Gary Long, Chief of FACT Phone Number: 775-684-0655 Email: gxlong@dwss.nv.gov Reviewed and Approved Crystal Buscay, CFO
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care & Development Fund, 93.596 Finding number: 2022-053 – Reporting Material Weakness in Internal Control over Compliance and Material Nonco...
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care & Development Fund, 93.596 Finding number: 2022-053 – Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: The Division of Welfare and Support Services (DWSS) did not maintain underlying documentation to support the amounts reported in the ACF-696 reports. Corrective Action Taken or To Be Taken: Due to multiple staff vacancies, reporting documentation had been misfiled in accordance with the Division’s existing internal controls. The Division has added additional internal controls to validate that the fiscal amounts reported on the ACF-696 will have supporting documentation in the applicable state fiscal year and additional guidance will be provided to new staff on those tighter internal controls. 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
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.
Finding #2022-041 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Significant Deficiency in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal contr...
Finding #2022-041 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Significant Deficiency in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to level of effort is tracked and supporting documents are maintained. NDE Response NDE maintains that the Governor’s Finance Office was responsible for the maintenance of effort for higher education. Evidence of the review process was lost following the departure of a former employee; however, upon becoming aware of the issue, NDE has worked to identify and mitigate the situation to the best of our ability. Corrective Action NDE shall develop a comprehensive Business Rule documenting the process for the development, review, and finalization of the ESF MOE report, to include clear crosswalks between source data and 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 offices across the Student Investment Division to develop this documentation. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
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.
Finding 367114 (2022-037)
Significant Deficiency 2022
Finding #2022-037 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensur...
Finding #2022-037 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure information included in the maintenance of effort monitoring document agrees to underlying documentation. 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.
Finding 367107 (2022-030)
Significant Deficiency 2022
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
Audit Finding 2022-024: U.S. Department of the Treasury Coronavirus Relief Fund, 21.019 Finding: Some expenditures were not reported in the appropriate classification or by vendor. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure Financial P...
Audit Finding 2022-024: U.S. Department of the Treasury Coronavirus Relief Fund, 21.019 Finding: Some expenditures were not reported in the appropriate classification or by vendor. 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: The GFO relied on the U.S. Department of Treasury guidance, frequently asked questions and other reporting and recordkeeping documents to administer the fund. This information was revised multiple times throughout the grant period, which was extended for an additional year on December 28, 2020, two days before it was to expire in December 2020 causing difficulties in decision determination. It wasn’t until the guidance for the American Rescue Plan Act was received and reviewed that the manner in which the reporting for the payments to state agencies was questioned. Corrective Action: On November 12, 2021, a request was sent to the CARES help desk at U.S. Department of Treasury for clarification regarding state agency reimbursements for COVID related expenditures. This response verified that reporting for state agency reimbursement needed to be completed for each vendor by contract, grant or direct payment over $50,000. Once confirmation was received from U.S. Department of Treasury, the process to determine expenditures by vendor over $50,000 (reporting under contract, direct or grant) for each State Agency Reimbursement Project by Fiscal Year. This analysis was in process while the Single Audit was ongoing and was completed and reported in GrantSolutions for the quarter ending June 2022. The reporting during this quarter was revised to address the finding of payroll costs separated by fiscal year according to the dropdown categories of substantially dedicated public health and safety and administrative leave. These payroll costs were eliminated from the Direct section in the reporting portal to the Aggregate of Direct Payments to Individuals section in the amount of $304,516,094 since the payroll was for the prime recipient. Date of Completion: October 2022 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
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
2.) Finding 2020-002 Report Submission Delay a. Program Information: 17.270 Reentry Employment Opportunities b. Criteria: In accordance with 2 CFR 200.329, non-Federal entities must submit quarterly financial reports at the interval required by the Federal awarding agency or pass-through entity no l...
2.) Finding 2020-002 Report Submission Delay a. Program Information: 17.270 Reentry Employment Opportunities b. Criteria: In accordance with 2 CFR 200.329, non-Federal entities must submit quarterly financial reports at the interval required by the Federal awarding agency or pass-through entity no later than the specified due date. If a justified request is submitted by a non-Federal entity, the Federal agency may extend the due date for any quarterly financial report. c. Condition: During our audit, we identified one quarterly financial report that was submitted to the Contracting Officer’s Representative (COR) after the stated due date. Response: Explanation: This delay was due to an unawareness of process limitations regarding the user application process for the Payment Management System (PMS), which is required for any new Finance Director. A formal application and access request form needs to be submitted along with documentation to support the request for access (including proof of identity, proof of employment, and role confirmation). These conditions, along with the 24-72 hour processing time required to get a user application approved by the PMS providers, led to our one-day-late submission of the required quarterly financial report. Corrective Action: We have established a more proactive approach to managing reporting requirements and a protocol for timely submissions of reports. This includes: - Mandatory PMS application processing as part of the early onboarding process for any new Finance Director. - Early preparation of reports, scheduling reviews a month ahead of the submission deadline. - Direct communication lines with the contract administrators and program directors. - Standard procedures identified to request extensions in case of anticipated delays, specific to each contracting agency. Future Measures: Regular training session for our team are planned to help staff stay informed about reporting requirements, procedures, and deadlines. Contact person responsible for corrective action: John Domingo, Finance & IT Director Compleion date: 07/01/2023
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
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
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