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Person responsible for corrective action plan: Stacey Mike, Interim Tribal Chair Marjianne Yonge, Tribal Treasurer PO Box 747 Lone Pine, CA 93545 (760) 876-1034 Condition: During testing, we noted the following: 21.027 • 1 of 11 Non-IDC Individually Important Items (IIIs) did not have an indication ...
Person responsible for corrective action plan: Stacey Mike, Interim Tribal Chair Marjianne Yonge, Tribal Treasurer PO Box 747 Lone Pine, CA 93545 (760) 876-1034 Condition: During testing, we noted the following: 21.027 • 1 of 11 Non-IDC Individually Important Items (IIIs) did not have an indication of review/approval of a journal entry (JE) reallocating funds from the program. • 2 of 2 IDC IIIs did not have indication of review/approval on the indirect cost allocation JE. 93.445 • 5 of 7 Non-IDC IIIs had no purchase requisition documentation provided. • 1of 1 IDC IIIs did not have indication of review/approval on the indirect cost allocation JE. 11.029 • 7 of 11 IIIs had no purchase requisition documentation provided. Corrective Action: Review and authorization procedures will be implemented for purchase orders and journal vouchers requiring an authorizing signature prior to processing. Anticipated date of completion: November 30, 2026.
Person responsible for corrective action plan: Stacey Mike, Interim Tribal Chair Marjianne Yonge, Tribal Treasurer PO Box 747 Lone Pine, CA 93545 (760) 876-1036 Condition: During testing, we noted the following: 21.027 • The Tribe was unable to provide documentation demonstrating that the required A...
Person responsible for corrective action plan: Stacey Mike, Interim Tribal Chair Marjianne Yonge, Tribal Treasurer PO Box 747 Lone Pine, CA 93545 (760) 876-1036 Condition: During testing, we noted the following: 21.027 • The Tribe was unable to provide documentation demonstrating that the required Annual Project and Expenditure Report was prepared and submitted. Additionally, the Tribe was unable to provide documentation supporting the calculation of revenue loss used to support expenditures reported under the revenue replacement provision. Corrective Action: Documentation shall be kept to verify timely submission of the Annual Project and Expenditure Report as well as the supporting calculations. Anticipated date of completion: November 30, 2026.
Federal Agency Name Department of Agriculture Federal Assistance Listing #10.766 Program Name Community Facilities Loan and Grants Cluster Finding Summary The Medical Center does not ensure that the required USDA Accounts (General Account, Construction Account, Debt Service Account, and Reserve Acco...
Federal Agency Name Department of Agriculture Federal Assistance Listing #10.766 Program Name Community Facilities Loan and Grants Cluster Finding Summary The Medical Center does not ensure that the required USDA Accounts (General Account, Construction Account, Debt Service Account, and Reserve Account) were reconciled on a timely basis. This increases the possibility that errors related to the USDA Accounts and other accounts impacted by the USDA Accounts, including construction in progress, are not properly stated in the financial statements. In addition, there could be amounts expended from the USDA Accounts that do not meet the requirements and those expenditures would not be identified in a timely manner. Corrective Action Plan Internal controls will be updated to have a formalized process established to ensure timely reconciliation of the USDA Accounts as well as a review process of those reconciliations each month Responsible Individuals Judy Monson, CFO Anticipated Completion Date Complete
Federal Agency Name Department of Agriculture Federal Assistance Listing #10.766 Program Name Community Facilities Loan and Grants Cluster Finding Summary Eide Bailly assisted in the preparation of our draft consolidated schedule of expenditures and federal awards and accompanying notes to the conso...
Federal Agency Name Department of Agriculture Federal Assistance Listing #10.766 Program Name Community Facilities Loan and Grants Cluster Finding Summary Eide Bailly assisted in the preparation of our draft consolidated schedule of expenditures and federal awards and accompanying notes to the consolidated schedule of expenditures and federal awards. Corrective Action Plan It is not cost effective to have an internal control system designed to provide for a complete and accurate schedule of expenditures and federal awards. We requested that our auditors, Eide Bailly LLP, assist in the preparation of the schedule of expenditures. We have designated a member of management to review the drafted schedule of expenditures. Responsible Individuals Judy Monson, CFO; Nikki Lindsey, CEO Anticipated Completion Date Ongoing
Similar to finding 2024-02, this issue persisted because NRMEDD did not have sufficient time or staffing to implement corrective actions following the delayed receipt of the 2023 audit findings in December 2024. To ensure compliance, NRMEDD has implemented a formal reconciliation process where the N...
Similar to finding 2024-02, this issue persisted because NRMEDD did not have sufficient time or staffing to implement corrective actions following the delayed receipt of the 2023 audit findings in December 2024. To ensure compliance, NRMEDD has implemented a formal reconciliation process where the NRMEDD Loan Manager prepares all federal financial reports and submits them to the Bookkeeper for a secondary review. The Bookkeeper will verify that each report reconciles to the underlying financial data and general ledger before final submission, providing documented evidence of supervisory review from the Executive Director to satisfy GAO Internal Control Standards.
Management agrees with the recommendation and expects the submission will be filed timely beginning in calendar year 2026.
Management agrees with the recommendation and expects the submission will be filed timely beginning in calendar year 2026.
Item 2024‐006 Reporting - Special Failure to submit the SF‐429 – Real Property Status Report and SF‐429‐A General Reporting reports accurately and timely results in noncompliance with the federal statute. To correct this, the agency will implement a formalized reporting procedure that outlines requi...
Item 2024‐006 Reporting - Special Failure to submit the SF‐429 – Real Property Status Report and SF‐429‐A General Reporting reports accurately and timely results in noncompliance with the federal statute. To correct this, the agency will implement a formalized reporting procedure that outlines required documentation, preparer and reviewer duties, and verification steps. A compliance calendar with automated reminders will be established, and dual-review sign-offs will be required for all submissions to ensure accuracy and completeness. To prevent recurrence, the agency will assign clear accountability for report preparation, review, and submission, supported by targeted staff training on federal real property reporting requirements. A centralized digital repository will be created for all real property documentation, ensuring consistent access and retention. The Finance Director will conduct quarterly compliance checks and report status updates to leadership, reinforcing oversight and ensuring sustained adherence to federal reporting standards. Responsible Personnel: Cynthia Cooper – Chief Finance Officer: Oversight, review, and compliance monitoring Sharon Jordan - Head Start Director: Accountability and reporting Estimated Date of Completion: December 2026
Finding 2024-004: Financial Reporting The club did not maintain proper documentation in support of financial reporting requirements for the two SF-425 reports that were tested. Corrective Action Plan The program will implement immediate corrective measures to strengthen federal financial reporting a...
Finding 2024-004: Financial Reporting The club did not maintain proper documentation in support of financial reporting requirements for the two SF-425 reports that were tested. Corrective Action Plan The program will implement immediate corrective measures to strengthen federal financial reporting and ensure full compliance with SF-425 documentation requirements. Within the first 30 days, supporting documentation for the SF-425 reports tested will be recreated and retained to the extent possible, and a standardized SF-425 Documentation Packet will be established to include all required backup materials. A designated staff member will be assigned responsibility for preparing and retaining all SF-425 support documentation, and finance staff will receive refresher training on federal reporting requirements and documentation standards. Between 30 and 60 days, the program will implement a Financial Reporting Documentation Policy requiring supporting schedules for each SF-425 line item, retention of all source documentation, and clear identification of preparers and reviewers. SF-425 preparation and documentation tasks will be integrated into the monthly and quarterly fiscal compliance calendar, and dual review and sign-off will be required for each submission to ensure accuracy and completeness. From 60 to 90 days, the program will strengthen reporting processes by implementing a SF-425 Preparation Checklist, establishing a centralized digital folder structure with restricted access and audit-ready program, cross-training additional staff to ensure continuity, and updating fiscal policies to reflect strengthened documentation and review procedures. Long-term oversight will include quarterly reporting compliance updates from the Finance Officer to the Head Start Director, Policy Council, and Executive Board; annual internal monitoring of SF-425 documentation packets; and maintenance of all federal reporting documentation for the required retention period under Uniform Guidance. Financial reporting procedures will be reviewed and updated annually. Full implementation will occur within 90 days, quarterly monitoring will remain ongoing, and annual policy review will occur each fiscal year. Evidence of completion will include completed SF-425 documentation packets, signed preparation and review checklists, updated fiscal policies and procedures, and quarterly compliance reports submitted to the Policy Council and Executive Board. Responsible Personnel: Cynthia Cooper – Chief Finance Officer: Oversight, review, and compliance monitoring Sharon Jordan - Head Start Director: Accountability and reporting Estimated Date of Completion: December 2026
Management plans to restore the replacement reserve to the required balance when funds are available. They have also submitted for rent increases to assist with cash flow. The expected completion date is July 31, 2026.
Management plans to restore the replacement reserve to the required balance when funds are available. They have also submitted for rent increases to assist with cash flow. The expected completion date is July 31, 2026.
CMSU WILL SUBMIT YEARLY AUDITS WITHIN THE NIN MONTH REQUIREMENT UPON THE COMPLETION OF THE FISCAL YEAR
CMSU WILL SUBMIT YEARLY AUDITS WITHIN THE NIN MONTH REQUIREMENT UPON THE COMPLETION OF THE FISCAL YEAR
The district will work with legal counsel to ensure proper contractual language pertaining to the Davis-Bacon Act is included in contracts using federal funding. Prior to payment to contractors, prevailing wage reports will be required to be submitted to the district to ensure compliance with federa...
The district will work with legal counsel to ensure proper contractual language pertaining to the Davis-Bacon Act is included in contracts using federal funding. Prior to payment to contractors, prevailing wage reports will be required to be submitted to the district to ensure compliance with federal program requirements per 29 CFR 5.5.
Audit Finding Reference: 2024-002 Youth Activities Earmarking Requirement Planned Corrective Action: Management concurs with the recommendation and will ensure that the Organization continue to monitor vendor performance and reporting, and implement timely procurement and contact management practice...
Audit Finding Reference: 2024-002 Youth Activities Earmarking Requirement Planned Corrective Action: Management concurs with the recommendation and will ensure that the Organization continue to monitor vendor performance and reporting, and implement timely procurement and contact management practices to ensure compliance with earmarking requirements in the future. Management expects these procedures to be fully implemented by the start of the next fiscal year. Planned Implementation Date of Corrective Action: July 1, 2026 Person Responsible for Corrective Action: School Superintendent and School Business Office Stephen Nembirkow, Director of Finance
Finding 2024-054- Matching, Level of Effort, and Earmarking (Personnel Cost Limitation) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to track, accumulate, and monitor personnel and personnel-related expenditures to demonstrate complia...
Finding 2024-054- Matching, Level of Effort, and Earmarking (Personnel Cost Limitation) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to track, accumulate, and monitor personnel and personnel-related expenditures to demonstrate compliance with the statutory limitation that no more than 50 percent of Homeland Security Grant Program funds may be used for personnel activities. The auditors recommended that DEM strengthen internal controls to monitor compliance with the personnel cost limitation. DEM Response DEM respectfully disagrees with the conclusion that it lacked internal controls over compliance with the Homeland Security Grant Program personnel cost limitation. The FY 2023 FEMA Preparedness Grants Manual establishes that recipients and subrecipients may not use more than 50 percent of their awards for personnel activities unless a waiver is approved by FEMA and refers recipients to Information Bulletin 421b for additional guidance. The Manual, however, does not prescribe a specific methodology requiring recipients to maintain a cumulative statewide calculation or continuously monitor personnel expenditures in the manner described by the audit recommendation. Rather, FEMA reviews applications, proposed investments, and budgets for compliance with the applicable Notice of Funding Opportunity (NOFO) before issuing an award. DEM maintains an established system of internal controls over HSGP expenditures. All HSGP applications are reviewed by DEM staff for compliance with the annual NOFO, applicable federal statutes, FEMA guidance, and program eligibility requirements before submission to FEMA. Proposed investments and budgets are subsequently reviewed through Nevada's public governance process by the Nevada Resilience Advisory Committee (NRAC), the Urban Area Working Group (UAWG), the Nevada Homeland Security Finance Committee, and the Nevada Homeland Security Commission (NHSC), with participation from all applicants. Following award, DEM reviews every quarterly financial report submitted by HSGP subrecipients prior to reimbursement. Professional-level grant management staff review all reported expenditures for compliance with the FEMA-approved budget, grant award conditions, and applicable federal requirements. Each reimbursement request is subsequently reviewed and approved by supervisory staff before payment is authorized. This multi-level review process provides ongoing assurance that personnel expenditures remain consistent with FEMA-approved grant awards and subawards throughout the period of performance. Accordingly, DEM believes these preventive and detective controls provided reasonable assurance of compliance with the statutory personnel cost limitation throughout the audit period. Corrective Action Planned Although DEM believes its existing internal controls are effective, DEM recognizes the benefit of further documenting those controls. DEM has revised its Internal Control Manual to formally document grant administration responsibilities, supervisory review requirements, and financial oversight procedures. The revised manual incorporates existing procedures governing quarterly financial report reviews, supervisory approvals, reimbursement reviews, grant monitoring activities, and periodic evaluations of internal controls. These enhancements better document the controls already in place and provide additional evidence supporting DEM's compliance with FEMA-approved grant awards, subawards, and applicable federal requirements. Contact Person(s) Responsible for Corrective Action • Susan Coyote, Chief Grants Officer • Shealyne Slone, Preparedness Grants Supervisor Anticipated Completion Date Implementation completed through the FY 2026 Internal Control Manual. Procedures are currently in effect for all active and future Homeland Security Grant Program awards.
Date: July 24, 2026 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP) Medicaid Cluster: State Medicaid Fraud Control Units State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, Medical Assistance Program (Medicaid; Title X...
Date: July 24, 2026 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP) Medicaid Cluster: State Medicaid Fraud Control Units State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, Medical Assistance Program (Medicaid; Title XIX) 93.767/93.775/93.778 Finding Number: 2024-050 - Eligibility Material Weakness in Internal Control over Compliance. PARIS data was not utilized by the Nevada Health Authority (NVHA) or DSS to monitor residency changes to determine when managed care benefits needed to be terminated because a beneficiary had become a resident of another state for Medicaid purposes. Projected questioned costs of $16,257,975 (Medicaid) and $1,111,448 (CHIP) were identified. (Repeat of prior year finding 2023-054.) Corrective Action Taken or To Be Taken: The Division of Social Services (DSS) automated the PARIS process as of September 30, 2025. The automation is designed to streamline the quarterly PARIS process. Upon receipt of the file, the system generates initial requests for information to identified customers, requiring them to confirm Nevada residency. Customers are allowed 30 days to respond. Approximately five days after the initial request, reminder notices are issued by text message and email to customers who have not responded. Customers who fail to respond within the 30-day timeframe, or who confirm an out-of-state address, will be terminated in accordance with policy, while those confirming Nevada residency will retain eligibility. NVHA continues to implement processes to ensure that MMIS will receive closure information related to PARIS matches and report it to T-MSIS. Once DSS has determined that termination is needed within the timeframes outlined above, DSS will send a “Y” indicator to MMIS and proceed with the termination which will also terminate the member from managed care benefits. This enhancement was implemented in November 2025. In addition, another project which will update the PARIS indicator to include Concurrent Enrollment Matches (CEM) and Death Master File (DMF). Any terminations that are full under these will be reported with respective termination codes when this is implemented, which is currently estimated to be October 2026 but is subject to change. If to be taken, estimated date of completion: Completed (2025); ongoing quarterly operations. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Karen Stoycoff, Social Services Program Specialist Phone Number: 775-684-7436 Email: kstoycoff@dss.nv.gov Name, Title: Russell Steele, Nevada Health Authority Phone Number: 775-684-3609 Email: rsteele@nvha.nv.gov Name, Title: Jennifer Frischmann, Nevada Health Authority Phone Number: 775-684-3609 Email: j.frischmann@nvha.nv.gov
Finding Number 2024-050 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...
Finding Number 2024-050 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 Summary of Finding for 2024 Audit: PARIS data was not utilized by the Nevada Health Authority (NVHA) or the Nevada Division of Social Services (DSS) 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. NVHA and DSS 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. We recommend NVHA and DSS implement internal controls to effectively communicate the PARIS data between each other and to ensure managed care benefits are terminated when appropriate. NVHA Response: The Nevada Health Authority agrees with this finding. Contact Person(s): Russ Steele, Audit Manager Corrective Action Planned: The Division of Social Services (DSS), which conducts eligibility and enrollment on behalf of Nevada Medicaid, automated the PARIS process as of September 30, 2025. The automation is designed to streamline the quarterly PARIS process. Upon receipt of the file, the system generates initial requests for information to customers identified, requiring them to confirm Nevada residency. Customers are allowed 30 days to respond. Approximately five days after the initial request, reminder notices are issued by text message and email to customers who have not responded. Customers who fail to respond within the 30-day timeframe, or who confirm an out-of-state address, will be terminated in accordance with policy, while those confirming Nevada residency will retain eligibility. NVHA continues to implement processes to ensure that MMIS will receive closure information related to PARIS matches and report it to T-MSIS. Once DSS has determined that termination is needed within the timeframes outlined above, DSS will send a “Y” indicator to MMIS and proceed with the termination which will also terminate the member from managed care benefits. This enhancement was implemented in November 2025. In addition, another project which will update the PARIS indicator to include Concurrent Enrollment Matches (CEM) and Death Master File (DMF). Any terminations that fall under these will be reported with respective termination codes when this is implemented, which is currently estimated to be October 2026 but is subject to change. Anticipated Completion Date of Corrective Action Plan: This corrective action plan was implemented on September 30, 2025.
Finding Number: 2024-040 – Matching, Level of Effort, and Earmarking – Significant Deficiency in Internal Control over Compliance Finding: As provided by 45 CFR section 264.1, the average monthly number of families that include an adult or minor child head of household, or the spouse of the head of ...
Finding Number: 2024-040 – Matching, Level of Effort, and Earmarking – Significant Deficiency in Internal Control over Compliance Finding: As provided by 45 CFR section 264.1, the average monthly number of families that include an adult or minor child head of household, or the spouse of the head of household, who has received assistance under any state program funded by federal TANF funds for more than 60 countable months (whether or not consecutive) may not exceed 20 percent of the average monthly number of all families to which the state provided assistance during the fiscal year or the immediately preceding fiscal year (but not both), as the state may elect. (Repeat of prior year finding 2023-038.) Corrective Action Taken or To Be Taken: DSS has established formal procedures to ensure TANF matching, level of effort, and earmarking requirements are consistently monitored. The TANF NEON Cash Hardship Report is now published and distributed to executive staff on a quarterly basis. Following publication, executive staff review the report and provide confirmation that program expenditures align with federal requirements. Documentation of each review is maintained as part of the official record to demonstrate compliance. These procedures ensure accurate tracking, timely oversight, and verification that TANF expenditures meet required match, level of effort, and earmarking standards. If to be taken, estimated date of completion: Corrective actions in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Jacqeline Marchetti, Social Service Chief III Phone Number: 702—631-2337 Email: jmarchetti@dss.nv.gov
Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. Nevada Division...
Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. 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 Division of Public and Behavioral Health will enhance internal controls to ensure the Quarterly Fiscal Reports are reconciled to underlying supporting documentation and are reviewed by an individual independent of the preparation of the reports. Date of Completion: August 2026 Responsible Party: Kagan Griffin, Health Program Manager II Kailynn Griffith, Health Program Manager II If you have any questions, please contact Kori Kendall, Auditor III at 775-684-3228 or by email at k.kendall@health.nv.gov.
Finding Number: 2024-047 - Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance. Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-049.) Corrective Action Taken or To Be Taken: This...
Finding Number: 2024-047 - Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance. Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-049.) Corrective Action Taken or To Be Taken: This requirement has been incorporated into DSS internal controls to ensure subaward reporting is completed timely and in compliance with FFATA. Designated staff are responsible for monthly submission, documentation, and verification, with internal review procedures in place to confirm accuracy and completeness. All reports were brought current, and ongoing reporting is now embedded in standard operating procedures to maintain compliance. If to be taken, estimated date of completion: Corrective action in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Catherine Council, Management Analyst III Phone Number: 775-684-0679 Email: cacouncil@dss.nv.gov
Finding Number: 2024-046 - Reporting – Material Weakness in Internal Control over Compliance. Certain amounts reported on the ACF-696 did not agree to underlying documentation. Finding DSS did not have internal controls to ensure the amounts reported were adequately documented and supported. Correct...
Finding Number: 2024-046 - Reporting – Material Weakness in Internal Control over Compliance. Certain amounts reported on the ACF-696 did not agree to underlying documentation. Finding DSS did not have internal controls to ensure the amounts reported were adequately documented and supported. Corrective Action Takenor To Be Taken: The internal controls have been updated to ensure the amounts are documented and reported accurately. If to be taken, estimated date of completion: Corrective action in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Brooke Barlow, Administrative Services Officer III- Chief of Fiscal Services Phone Number: 775-684-0659 Email: bebarlow@dss.nv.gov
Finding Number: 2024-045 – Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Finding: DSS did not have adequate internal controls to ensure the in-kind service match amounts were reconciled and reported accurately. Corrective Action Taken or To Be T...
Finding Number: 2024-045 – Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Finding: DSS did not have adequate internal controls to ensure the in-kind service match amounts were reconciled and reported accurately. Corrective Action Taken or To Be Taken: The internal controls have been updated to ensure the in-kind service match amounts are reconciled and reported accurately. If to be taken, estimated date of completion: Corrective action are already in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Brooke Barlow, Administrative Services Officer III- Chief of Fiscal Services Phone Number: 775-684-0659 Email: bebarlow@dss.nv.gov
Audit Finding 2024-059 Finding: US Department of the Treasury (Treasury) regulations at 31 CFR Part 205 implement the Cash Management Improvement Act of 1990 (CMIA), as amended (Pub. L. No. 101-453; 31 USC 6501 et seq.). Subpart A of those regulations requires state recipients to enter into Treasury...
Audit Finding 2024-059 Finding: US Department of the Treasury (Treasury) regulations at 31 CFR Part 205 implement the Cash Management Improvement Act of 1990 (CMIA), as amended (Pub. L. No. 101-453; 31 USC 6501 et seq.). Subpart A of those regulations requires state recipients to enter into Treasury-State Agreements that prescribe specific methods of drawing down federal funds (funding techniques) for federal programs listed in the Assistance Listing (Catalog of Federal Domestic Assistance) that meet the funding threshold for a major federal assistance program under the CMIA. The major federal assistance program threshold for the State of Nevada’s 2024 Treasury-State Agreement was $60,000,000 in accordance with 31 CFR Part 205.5, which was determined based on the State’s Single Audit for the year ended June 30, 2021. Major federal assistance programs were not included in the State of Nevada’s Treasury- State Agreement as required. The State of Nevada Controller’s Office (SCO) did not have adequate internal controls to ensure major federal assistance programs were completely identified. Two assistance listing programs were not subject to the specific methods of drawing down federal funds that would have been negotiated within the Treasury-State Agreement. No sampling was used. We reviewed the expenditures by assistance listing on the State of Nevada’s Schedule of Expenditures of Federal Awards for the year ended June 30, 2021. We noted Special Education Grants to States, 84.027, and the Child Care and Development Block Grant, 93.575, both exceeded $60,000,000 and were not included. In addition, there was no documentation available to support whether these programs met any allowable exclusions or exemptions. Recommendation: We recommend SCO enhance internal controls to ensure major federal assistance programs are completely identified. Agency Response Does the Agency Agree with Finding: Yes Additional Comments: None Corrective Action Taken or to be Taken Action: The State Controller’s Office (SCO) will enhance internal controls to ensure major federal assistance programs are completely identified. Date of Completion or Estimated Completion: Estimated completion August 2026 Department or Agency Responsible for Corrective Action Plan Agency: Controller’s Office Contact: Micheala Woodburn, Senior Accountant (ACFR), Fiscal Operations 101 N. Carson Street, Suite 5 Carson City, NV 89701 775-684-5615 mwoodburn@sco.nv.gov
Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reporte...
Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend 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. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2027. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.
Finding #2024-033 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure main...
Finding #2024-033 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure maintenance of effort is tracked, complied with, and supporting documents maintained. NDE Response In alignment with efforts under findings 2023-034 and 2024-030, regarding maintenance of effort, the Department has worked to develop policies and procedures, business rules, and consistent data and reporting practices across reports. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to Maintenance of Effort. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2026. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.
Finding #2024-032 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE enhance internal controls to ensure earmarking requirements are initi...
Finding #2024-032 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE enhance internal controls to ensure earmarking requirements are initially met and implement internal controls to ensure ongoing compliance is monitored. NDE Response 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. NDE shall implement internal control monitoring specific to earmarking. The Office of Division Compliance will collaborate with offices across the agency to develop this policy. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2027. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.
Finding #2024-030 - 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 #2024-030 - 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 maintenance of effort monitoring is reviewed by a party other than the preparer for accuracy and appropriate review of compliance. NDE Response NDE agrees with this finding. In alignment with efforts under finding 2023-034 regarding maintenance of effort, the Department has developed a comprehensive Policy and Procedure (1.9 Title I ESEA MOE) documenting the process for the development, review, and finalization of the MOE report, as well a Business Rule which clearly crosswalks source data to reporting outcomes and integrates pillars from NDE’s Records Management Program. Corrective Action A checklist detailing the chain of review has been developed and implemented to track the review and approval process of federal reports prior to submission. NDE shall update and implement MOE internal controls and monitoring to require a review by at least 2 individuals. The Office of Division Compliance will collaborate across the Department to ensure adoption and adherence to this update. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2026. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.
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