Corrective Action Plans

Finding 367151 (2022-054)

Material Weakness 2022

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking Subrecipient Monitoring

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

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Finding 367150 (2022-053)

Material Weakness 2022

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking Material Weakness

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

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Finding 367121 (2022-044)

Material Weakness 2022

State of Nevada

NV

Reporting Subrecipient Monitoring Material Weakness

Finding #2022-044 – 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 enhance internal controls to ensure subaward information i...

Finding #2022-044 – 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 enhance internal controls to ensure subaward information is submitted in accordance with the FFATA. NDE Response At the time of this Corrective Action Plan, NDE has remediated reporting deficiencies under FFATA. Specifically, a new process, to include updated templates, formulas, reporting practices, and crosschecks, has been implemented to accurately and completely capture FFATA reporting requirements. Successful implementation of this process has led to accurate and complete reporting for all COVID-relief funding reports, and pends finalized process documentation. Corrective Action NDE shall develop a comprehensive Policy and Procedure (1.11 FFATA Reporting) documenting the process for the development, review, and finalization of FFATA reports. Supplemental to the Policy and Procedure, NDE shall develop a Business Rule which clearly crosswalks source data to reporting outcomes and explains the use of various templates and formulas. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; March 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

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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.

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Finding 367119 (2022-041)

Material Weakness 2022

State of Nevada

NV

Internal Control / Segregation of Duties Material Weakness Reporting

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.

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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.

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Finding 367117 (2022-040)

Material Weakness 2022

State of Nevada

NV

Special Tests & Provisions Material Weakness Reporting

Finding #2022-040 – Title I Grants to Local Education Agencies, CFDA 84.010 Special Tests and Provisions – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal contro...

Finding #2022-040 – Title I Grants to Local Education Agencies, CFDA 84.010 Special Tests and Provisions – 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 ensure appropriate documentation of compliance with section 4306(c) of the ESEA is maintained. NDE Response Due to rapid turnover at NDE and unclear policies related to the digital retention of employee files, NDE lost access to the historical records of ESEA 4306(c) reports from FY18-FY23 following the departure of a former employee. 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 Policy and Procedure (2.2 Title I Earmarking and Hold Harmless Reporting) documenting the process for the development, review, and finalization of the ESEA 4306(c) 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 School and Student Supports to develop and finalize these documents. In addition, NDE shall review its Policies and Procedures related to email and file retention (4.7 Telecommunications, 4.8 Devices, and 6.6 Records Retention) to ensure that this issue is prevented in future. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management and other applicable NDE Offices to facilitate this process. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance; Student Achievement Division, Offices of Student and School Supports and Assessment, Data, and Accountability Management; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

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Finding 367116 (2022-039)

Material Weakness 2022

State of Nevada

NV

Reporting Subrecipient Monitoring Material Weakness

Finding #2022-039 – Title I Grants to Local Education Agencies, CFDA 84.010 Reporting – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure subaward information is submit...

Finding #2022-039 – Title I Grants to Local Education Agencies, CFDA 84.010 Reporting – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure subaward information is submitted timely in accordance with the FFATA. NDE Response At the time of this Corrective Action Plan, NDE has remediated reporting deficiencies under FFATA. Specifically, a new process, to include updated templates, formulas, reporting practices, and crosschecks, has been implemented to accurately and completely capture FFATA reporting requirements. Successful implementation of this process has led to accurate and complete reporting for FY23 and FY24 reports, and pends finalized process documentation. Corrective Action NDE shall develop a comprehensive Policy and Procedure (1.11 FFATA Reporting) documenting the process for the development, review, and finalization of FFATA reports. Supplemental to the Policy and Procedure, NDE shall develop a Business Rule which clearly crosswalks source data to reporting outcomes and explains the use of various templates and formulas. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; March 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

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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

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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

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Finding 367108 (2022-031)

Material Weakness 2022

State of Nevada

NV

Reporting Subrecipient Monitoring Material Weakness

Audit Finding: 2022-031 Homeowners Assistance Fund: 21.026 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Required subaward information was not reported per the Federal Funding Accountability and Transparency Act (FFATA). FFATA requires direct rec...

Audit Finding: 2022-031 Homeowners Assistance Fund: 21.026 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Required subaward information was not reported per the Federal Funding Accountability and Transparency Act (FFATA). 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. Recommendation: Implement internal controls to ensure subaward information is submitted in accordance with FFATA. Agency Response: The Nevada Housing Division (“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. 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

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Finding 367105 (2022-027)

Material Weakness 2022

State of Nevada

NV

Reporting Material Weakness

Audit Finding: 2022-027 Emergency Rental Assistance Program: 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Quarterly Reports submitted for ERA2 were not prepared with the same underlying methodology as the ERA1 Quarterly Reports and adequa...

Audit Finding: 2022-027 Emergency Rental Assistance Program: 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Quarterly Reports submitted for ERA2 were not prepared with the same underlying methodology as the ERA1 Quarterly Reports and adequate documentation was not available to support the inconsistent reporting. Recommendation: Enhance internal controls to ensure Quarterly Reports are prepared consistently and with appropriate supporting documentation. Agency Response: The Division agrees with the finding. The Division also acknowledges this is a prior year 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. Additionally, U.S. Treasury guidance was often confusing and contradictory. Corrective Action: The Division will establish an internal audit and compliance committee. 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 which includes the submission of all required federal 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

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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

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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

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Finding 367102 (2022-024)

Material Weakness 2022

State of Nevada

NV

Reporting Subrecipient Monitoring Material Weakness

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

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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

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Finding 367098 (2022-020)

Material Weakness 2022

State of Nevada

NV

Reporting Material Weakness

Finding 2022-020 Amounts reported on the ETA 2112 were misreported by category (benefit type). A nonstatistical sample of four out of 12 monthly reports was selected for testing. Errors were noted on each of the four reports tested as follows: Month Ended July 31, 2021 • Deposit and disbursemen...

Finding 2022-020 Amounts reported on the ETA 2112 were misreported by category (benefit type). A nonstatistical sample of four out of 12 monthly reports was selected for testing. Errors were noted on each of the four reports tested as follows: Month Ended July 31, 2021 • Deposit and disbursement total variances of $29,400. • Off-setting variances in specific benefits ranging from $1,069 to $522,826. Month Ended August 31, 2021 • Off-setting variances in specific benefits ranging from $2,993 to $3,244,522. Month Ended December 31, 2021 • Off-setting variances in specific benefits ranging from $4,785 to $373,125. Month Ended April 30, 2022 • Off-setting variances in specific benefits ranging from $2,992 to $161,515. Recommendation We recommend the Department enhance the internal controls to ensure benefit payments are appropriately categorized by type. Nevada DETR’s Response DETR has revised the current internal control procedure to ensure benefit payments are appropriately categorized by type. Please reference the sections titled “Previous day Adjustments” and “Verify the Draw Request to Treasurer’s Draw Confirmation”. Estimated Date of Completion: COMPLETED Contact Person: Carrie Edlefsen, Chief Financial Officer, DETR/ESD (775)684-3952 c-edlefsen@detr.nv.gov

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Finding 367086 (2022-019)

Material Weakness 2022

State of Nevada

NV

School Nutrition Programs Reporting Subrecipient Monitoring

Finding 2022-019: U.S. Department of Agriculture Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Special Milk Program for Children, 10.556 Summer Food Service Program for Children, 10.559 Fresh Fruit and Vegetable Program, 10.582 Reporting Material Wea...

Finding 2022-019: U.S. Department of Agriculture Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Special Milk Program for Children, 10.556 Summer Food Service Program for Children, 10.559 Fresh Fruit and Vegetable Program, 10.582 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance The Nevada Department of Agriculture (NDA) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. A nonstatistical sample of 6 out of a population of 54 applicable subaward obligations was selected for testing. The quantity and subaward obligation errors were noted as follows: The NDA accepts these findings and will take corrective action to enhance internal controls to ensure FFATA required information is reported annually. Corrective action: The NDA will begin submitting information in accordance with FFATA at the end of the 2023 award period per direction from the federal partner that annual submittals are in compliance with FFATA for the Child Nutrition Cluster programs. The submittal of information will be done as part of the NDA’s closing procedure for these awards. Date of completion: February 28, 2024

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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

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Finding 366877 (2022-002)

Material Weakness 2022

Village of Tennyson, Wisconsin

WI

Material Weakness Reporting Internal Control / Segregation of Duties

Preparation of Financial Statements and Schedules of Expenditures of Federal and State Awards Condition: Village staff does not prepare the financial statements and schedules of federal and state awards. The Village has designated an individual responsible for reviewing and accepting the financial ...

Preparation of Financial Statements and Schedules of Expenditures of Federal and State Awards Condition: Village staff does not prepare the financial statements and schedules of federal and state awards. The Village has designated an individual responsible for reviewing and accepting the financial statements and schedules of federal and state awards. Criteria: Internal controls over preparation of the financial statements and schedules of federal and state awards, should be in place to provide reasonable assurance that a misstatement would be prevented or detected. Cause: The Village does not prepare the financial statements and full schedules of federal and state awards. Effect: Because management relies on the auditor to assist with the preparation of the financial statements and schedules of federal and state awards, the Village’s system of internal control may not prevent, detect, or correct misstatements in the financial statements and schedules of federal and state awards. Recommendation: The auditors will work with the Village to make personnel more knowledgeable about its responsibility for the financial statements and schedules of federal and state awards. Response: The auditors prepare the financial statements and schedules of federal and state awards, but we review and accept prior to issuance. We prepare financial reports that are reviewed by the Village Board monthly. Any concerns or questions are addressed throughout the year. Contact Person: Lynn Yager, Clerk/Treasurer Anticipated Completion: Not Applicable

View Audit 289978

Finding 366795 (2022-001)

Material Weakness 2022

The Enterprise Center

PA

Material Weakness Reporting § 200.512

The Enterprise Center and Affiliates Corrective Action Plan Year Ended June 30, 2022 Finding 2022-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2022, management was unable to provide timely year-end trial balances in accordance with U...

The Enterprise Center and Affiliates Corrective Action Plan Year Ended June 30, 2022 Finding 2022-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2022, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization’s current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Management’s Corrective Action Plan The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation. We are continually making accounting policy changes which will correct some of the issues noted. Management is confident that the issues that have been noted will be rectified in the fiscal year ending June 30, 2023. Contact Person: Della Clark, Chief Executive Officer Anticipated Completion Date: June 30, 2023

View Audit 289840

Finding 366772 (2022-004)

Material Weakness 2022

Center for Disease Dynamics Economics & Policy Inc.

MD

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.302 § 200.303

Agree with the finding. We will implement the segregation of duties matrix as part of SOPs. We will ensure that authorization and review of cash draws of fedral funds are done by some one other than the individual who initiates and records the transaction . We have implemented the same and Dr EIli (...

Agree with the finding. We will implement the segregation of duties matrix as part of SOPs. We will ensure that authorization and review of cash draws of fedral funds are done by some one other than the individual who initiates and records the transaction . We have implemented the same and Dr EIli (pi) is reviewing and approving the report before each withdrawal. The Finance Head ( Nafih) is withdrawing the fund .Anticipated Completion Date : 12/31/2022 Actual date of implementation :01/24/2023

View Audit 289832

Finding 366771 (2022-003)

Material Weakness 2022

Center for Disease Dynamics Economics & Policy Inc.

MD

Material Weakness Reporting

Agree with the finding . We will make sure that the performance year- end audit will be in a shorter period after year end prepare and review all necessary schedules, and reconcile all accounts in a timely manner so that the audit can be performed befor the nine- month deadline. We have statrted th...

Agree with the finding . We will make sure that the performance year- end audit will be in a shorter period after year end prepare and review all necessary schedules, and reconcile all accounts in a timely manner so that the audit can be performed befor the nine- month deadline. We have statrted the auadit process works early this yearand we will be filling the audit report with the Fedral Audit clearing house within time . Anticipated Completion Date : 03/31/2023 Actual date of implementation : 03/31/2023

View Audit 289832

Finding 366756 (2022-007)

Material Weakness 2022

South Bend Community School Corporation

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2022-007 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Summary of Finding: Finding: No oversight of reports and supporting documentation did not agrees to report submitted Recommendation: Provide oversight of reports submitted and retain supporting documentation that a...

FINDING 2022-007 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Summary of Finding: Finding: No oversight of reports and supporting documentation did not agrees to report submitted Recommendation: Provide oversight of reports submitted and retain supporting documentation that agrees to reports submitted Contact Person Responsible for Corrective Action: Kareemah Fowler, Assistant Superintendent of Business and Finance Deb Martin, Director of Student Learning & Title I Contact Phone Number and Email Address: Kareemah Fowler (574) 393-6088; kfowler@sbcsc.k12.in.us Deb Martin (574) 393-6053; dmartin@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: All reports and supporting documentation, which supports each report submitted, will be reviewed/approved by the program director. All supporting documentation will be retained for future audits. Anticipated Completion Date: December 8, 2024

View Audit 289747

Finding 366754 (2022-005)

Material Weakness 2022

South Bend Community School Corporation

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

FINDING 2022-005 Finding Subject: Title I Grants to Local Educational Agencies - Special Tests and Provisions - Annual Report Card/High School Graduation Rate Summary of Finding: Finding: Exit documentation was missing or incorrectly matched with student mobility codes for students in the testing sa...

FINDING 2022-005 Finding Subject: Title I Grants to Local Educational Agencies - Special Tests and Provisions - Annual Report Card/High School Graduation Rate Summary of Finding: Finding: Exit documentation was missing or incorrectly matched with student mobility codes for students in the testing sample of the 2022 cohort. Contact Person Responsible for Corrective Action: Rafi Nolan-Abrahamian, Assistant Superintendent of Accountability and Innovation Contact Phone Number and Email Address: 574-393-6179; rnolan-abrahamian@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: SBCSC will conduct re-training of all High School principals and data technicians to review SBCSC withdrawal policies (outlined below), along with required documentation for each exit/mobility code. This training will be conducted in January 2024. District staff will confirm with each high school that procedures below are in place by reviewing cohort binders with the principal and data technician. Meetings will be scheduled in the Spring of 2024. Procedure for Withdrawing Students from all SBCSC High Schools Anytime a parent requests that a student withdraw from a high school, the following steps must be followed. If a parent is not requesting a transfer, the principal will complete an exit interview. All transfers will follow this procedure. (Please also see the procedure for processing no shows.) 1. Only the principal is allowed to sign the withdrawal form. If the principal is not available, an assistant principal may sign the withdrawal form and immediately email it to the principal. 2. Prior to signing the withdrawal form, the principal will speak with the parents and student to gather any information that may help the school understand why a withdrawal is necessary. Once this conversation has happened, the principal will advise the parent and student. 43 INDIANA STATE BOARD OF ACCOUNTS South􀀃Bend􀀃Community􀀃School􀀃Corporation􀀃 215􀀃South􀀃Dr.􀀃Martin􀀃Luther􀀃King􀀃Jr.􀀃Boulevard􀀃􀀃 􀀃South􀀃Bend,􀀃Indiana􀀃46601􀀃􀀃 574􀇦393􀇦6100􀀃􀀃 􀀃 􀀃 􀀃 􀀃 INTEGRITY􀀃•􀀃ACCOUNTABILITY􀀃•􀀃EMPOWERMENT􀀃 􀀃 ACADEMIC􀀃QUALITY􀀃|􀀃EQUITY,􀀃INCLUSION􀀃&􀀃JUSTICE􀀃|􀀃FINANCIAL􀀃 SUSTAINABILITY􀀃|􀀃COMMUNITY􀀃PARTNERSHIPS􀀃 􀀃 3. If it is determined that the student will transfer, the signed withdrawal form will be filed in a binder based on class cohort. For example, all students scheduled to graduate in the spring of 2022 will be filed with the 2022 cohort. The principal must determine the name and contact information for the receiving school. 4. It is the responsibility of the data technician to manage these cohorts by checking Learning Connection weekly. If discrepancies are visible in Learning Connection, a data technician will contact the SBCSC Department of Research and Evaluation and the IDOE. 5. The secretary of student management will forward any requests for records to the data technician to file with the student’s withdrawal paperwork. (We must have a request for records for every student withdrawing from SBCSC.) 6. The data technician will follow up regarding any student with whom we did not receive a request for records for within one week of the withdrawal. The data technician will contact the receiving school and parent to locate the records request. 7. The data technician will continue to locate a request for records weekly until the request is received by SBCSC. 8. Documentation will be maintained of all efforts made to collect the information. Anticipated Completion Date: Spring 2024

View Audit 289747

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