Corrective Action Plans

Finding 1236711 (2024-004)

Material Weakness 2024

Washington County Negro Business and Professional Women's Club, Inc.

GA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.302 § 200.303

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

View Audit 412263

Finding 1236704 (2024-001)

Material Weakness 2024

LAVENDER YOUTH RECREATION AND INFORMATION CENTER, INC.

CA

Subrecipient Monitoring Reporting § 200.329 § 200.512

Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. To prevent recurrence, LYRIC will: (1) assign a designated staff member and a contracts manager the responsibility for federal audit compliance monitoring, including tracking cumulative award expenditures...

Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. To prevent recurrence, LYRIC will: (1) assign a designated staff member and a contracts manager the responsibility for federal audit compliance monitoring, including tracking cumulative award expenditures throughout; (2) establish an annual federal expenditure calendar that flags when spending approaches the $750,000 threshold; (3) maintain a reporting timeline aligned with FAC submission deadlines, including the nine-month post-fiscal-year-end deadline; and (4) engage its audit firm at the start of each fiscal year to plan audit scope and timing, ensuring the Single Audit can be completed within the required timeframe. Uniform Guidance applicability training will be provided to staff as needed. Management also agrees with the non-submission of performance reports. LYRIC will take the following corrective actions: (1) develop a comprehensive grant reporting calendar for all active federal awards, identifying each required report type, submission deadline, and the staff member responsible for preparation and submission; (2) designate a program staff lead for the federal award reporting, with mandatory review by the Contracts Manager and Director of Finance prior to each submission; (3) implement an internal check-in to review upcoming reporting deadlines across all grants; and (4) submit any outstanding reports to the authorities as promptly as possible and proactively communicate with the assigned program officer regarding the delayed submissions to mitigate any compliance impact. Responsible Official and Position: Ana Rubio, Director of Finance, and Laura Chavez, Contracts Manager Expected Implementation Date: July 1, 2026

View Audit 412259

Finding 1235989 (2024-002)

Material Weakness 2024

Town of Greenfield

MA

Matching / Level of Effort / Earmarking Reporting

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

View Audit 411595

Finding 1235951 (2024-002)

Material Weakness 2024

Town of Ashland

MA

Equipment & Real Property Management Reporting § 200.313

Audit Finding Reference: 2024-002 Equipment Records and Physical Inventory Requirements Not Maintained Planned Corrective Action: The Town acknowledges the finding regarding equipment records and physical inventory requirements and appreciates the opportunity to strengthen oversight in this area. Th...

Audit Finding Reference: 2024-002 Equipment Records and Physical Inventory Requirements Not Maintained Planned Corrective Action: The Town acknowledges the finding regarding equipment records and physical inventory requirements and appreciates the opportunity to strengthen oversight in this area. The Town will reinforce applicable equipment tracking and physical inventory requirements with responsible departments. Moving forward, the Accounting Department will work with responsible departments to provide guidance regarding applicable equipment recordkeeping and inventory requirements and will increase oversight of compliance as part of its grant monitoring and review processes. Any issues identified through this oversight will be communicated to the appropriate department for follow-up and resolution. Planned Implementation Date of Corrective Action: September 2026 Person Responsible for Corrective Action: Stephanie Pemberton, Town Accountant Please consider this the Town’s official corrective action response to be included in the final audit report.

View Audit 411560

Finding 1235950 (2024-001)

Material Weakness 2024

Town of Ashland

MA

Reporting Significant Deficiency Internal Control / Segregation of Duties

Audit Finding Reference: 2024-001 Inaccurate Project and Expenditure Reporting Planned Corrective Action: The Town acknowledges the finding regarding inaccurate project and expenditure reporting and appreciates the opportunity to strengthen its reporting processes. While the project identified in th...

Audit Finding Reference: 2024-001 Inaccurate Project and Expenditure Reporting Planned Corrective Action: The Town acknowledges the finding regarding inaccurate project and expenditure reporting and appreciates the opportunity to strengthen its reporting processes. While the project identified in the finding has since been completed and closed, the Town will implement additional controls to help prevent similar issues in future projects. Effective July 1, 2026, the Accounting Department added one FTE to provide additional capacity for project financial oversight and review. Moving forward, the Town will increase the frequency of reconciliations and strengthen supervisory review of project expenditures and reporting to ensure transactions are accurately recorded, properly supported, and reported in accordance with applicable requirements. Planned Implementation Date of Corrective Action: September 2026 Person Responsible for Corrective Action: Stephanie Pemberton, Town Accountant Please consider this the Town’s official corrective action response to be included in the final audit report.

View Audit 411560

Finding 1235904 (2024-001)

Material Weakness 2024

GRADY ELECTRIC MEMBERSHIP CORPORATION

GA

Reporting

The Corporation agrees with the finding. Management has assigned the responsibility for monitoring and submitting the DCF and reporting package to specific personnel.

View Audit 411520

Finding 1235736 (2024-001)

Material Weakness 2024

Citizens for Better Living, Inc.

MI

Procurement, Suspension & Debarment Subrecipient Monitoring HUD Housing Programs

Finding 2024-001: For the year ended December 31, 2023, the Corporation did not submit the Data Collection Form to the Federal Audit Clearinghouse in the time period required by Uniform Guidance. Comments on the Finding and Each Recommendation: The Corporation should submit the Data Collection Form ...

Finding 2024-001: For the year ended December 31, 2023, the Corporation did not submit the Data Collection Form to the Federal Audit Clearinghouse in the time period required by Uniform Guidance. Comments on the Finding and Each Recommendation: The Corporation should submit the Data Collection Form to the Federal Audit Clearinghouse within the required time period. Management agrees with the finding and agrees with the auditor's recommendation. Action(s) Taken or Planned on the Finding: The Data Collection Form was submitted to the Federal Audit Clearinghouse on May 30, 2024, no further action is required.

View Audit 411416

Finding 1230146 (2024-058)

Material Weakness 2024

State of Nevada

NV

Special Tests & Provisions Subrecipient Monitoring Material Weakness

Finding 2024-058- Special Tests and Provisions – Subgrant Awards (Pass-through Requirement) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to ensure compliance with the statutory requirement that at least 80 percent of State Homeland Se...

Finding 2024-058- Special Tests and Provisions – Subgrant Awards (Pass-through Requirement) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to ensure compliance with the statutory requirement that at least 80 percent of State Homeland Security Program (SHSP) funds were obligated to local units of government within the required timeframe or that written consent was obtained when funds were retained by the State Administrative Agency (SAA). As a result, the auditors recommended that DEM strengthen internal controls to document compliance with the statutory passthrough requirement. DEM Response DEM respectfully disagrees with the conclusion that it lacked internal controls over compliance with the SHSP 80 percent pass-through requirement. DEM maintains an established governance process that provides multiple levels of review before Homeland Security Grant Program funding recommendations are submitted to FEMA. All HSGP applications are initially reviewed by DEM staff for compliance with the annual Notice of Funding Opportunity (NOFO), applicable federal statutes, FEMA guidance, and program eligibility requirements. Applications and proposed funding allocations are then reviewed through a transparent public process by the Nevada Resilience Advisory Committee (NRAC), the Urban Area Working Group (UAWG), the Homeland Security Finance Committee, and the Nevada Homeland Security Commission (NHSC), with full participation of all eligible applicants. These reviews evaluate project eligibility, funding priorities, and compliance with applicable statutory and program requirements prior to FEMA approval. The FY 2023 FEMA Preparedness Grants Manual describes FEMA's review of preparedness grant applications, investment justifications, and funding allocations prior to award. DEM's application review process complements FEMA's oversight through multiple levels of state and local review before funding recommendations are submitted. Likewise, FEMA reviews the State's HSGP application and proposed funding allocations for compliance with the applicable NOFO before issuing an award. The Manual does not prescribe a specific post-award methodology requiring recipients to maintain a cumulative statewide calculation of the pass-through requirement. During Nevada's application review process, any funding proposed to remain with DEM as the State Administrative Agency is openly discussed with participating jurisdictions and stakeholder groups. Those funding decisions are agreed upon through the public application review process and are documented through Memoranda of Understanding (MOUs) and executed subaward documents. These records document local government concurrence with funding allocations and provide evidence supporting compliance with statutory pass-through requirements. Accordingly, DEM believes its existing governance structure constitutes an effective preventive internal control over compliance with the SHSP pass-through requirement. Corrective Action Although DEM believes its existing internal controls provide reasonable assurance of compliance, DEM recognizes the benefit of enhancing documentation supporting those controls. DEM has revised its Internal Control Manual to strengthen grant administration and oversight and will implement the following additional procedures: • Maintain a grant file certification documenting compliance with the SHSP statutory pass-through requirement for each HSGP award. • Retain documentation demonstrating review of funding allocations through DEM staff, NRAC, UAWG, Homeland Security Finance Committee, and NHSC. • Retain all applicable Memoranda of Understanding, subaward agreements, and supporting documentation evidencing local jurisdiction concurrence regarding funds retained by DEM. • Document any FEMA approvals or written consents applicable to retained funding in the official grant file. • Continue annual review of internal controls and grant administration procedures to ensure continued compliance with FEMA guidance and federal requirements. These enhancements formalize documentation of controls that have historically existed throughout Nevada's HSGP governance and award process. Responsible Official(s): • Susan Coyote, Chief Grants Officer • Shealyne Slone, Preparedness Grants Supervisor Anticipated Completion Date: Implemented for FY 2026 HSGP awards; ongoing thereafter.

View Audit 411357

Finding 1230144 (2024-056)

Material Weakness 2024

State of Nevada

NV

Reporting Internal Control / Segregation of Duties § 200.303

Finding 2024-056 – Reporting (FFATA Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not maintain sufficient internal controls to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA) repor...

Finding 2024-056 – Reporting (FFATA Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not maintain sufficient internal controls to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA) reporting requirements. Specifically, the auditors identified deficiencies in the review and reporting process and recommended that DEM implement documented procedures, including an independent review of FFATA submissions prior to reporting. OEM Response The Nevada Office of Emergency Management (OEM), formerly the Nevada Division of Emergency Management (DEM) during the FY 2024 audit period, agrees that FFATA reporting should be performed accurately, timely, and in accordance with applicable federal requirements. During the audit period, DEM maintained grant administration controls that included supervisory oversight, segregation of duties, and management review of grant activities. The audit identified an opportunity to further formalize documentation of FFATA reporting responsibilities and the review process supporting those submissions. OEM believes the finding primarily reflects the need for additional documentation of existing review procedures rather than the absence of internal controls. Corrective Action Planned OEM has revised its Internal Control Manual to formally document internal controls governing FFATA reporting. The revised Grant Management section establishes documented review responsibilities, segregation of duties, supervisory oversight, and record retention requirements throughout the grant administration process. These controls include documented review of FFATA reporting requirements prior to submission and retention of supporting documentation within the official grant file. Where applicable, the Internal Control Manual references the Grant Management Guide, which provides detailed procedures for determining FFATA reporting applicability and completing required submissions. Supervisory review responsibilities have been formalized to ensure FFATA submissions are reviewed for completeness, accuracy, and compliance before reporting. These revisions strengthen documentation of existing grant management practices and provide additional assurance that FFATA reporting requirements are consistently reviewed, completed, and supported. Responsible Official(s) • Susan Coyote, Chief Grants Officer • Shealyne Slone, Preparedness Grants Supervisor Anticipated Completion Date Implemented through the 2026 Internal Control Manual. Revised FFATA review and documentation procedures are currently in effect and will be applied to all active and future Homeland Security Grant Program awards.

View Audit 411357

Finding 1230143 (2024-055)

Material Weakness 2024

State of Nevada

NV

Reporting Internal Control / Segregation of Duties § 200.303

Finding 2024-055 – Reporting (SF-425 Federal Financial Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not have sufficient internal controls to ensure Federal Financial Reports (SF-425) were accurately prepared, independe...

Finding 2024-055 – Reporting (SF-425 Federal Financial Reporting) Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not have sufficient internal controls to ensure Federal Financial Reports (SF-425) were accurately prepared, independently reviewed, and reconciled prior to submission. The auditors recommended that DEM strengthen its internal controls by implementing documented reconciliation procedures and an independent supervisory review of SF-425 reports before submission. OEM Response The Nevada Office of Emergency Management (OEM), formerly the Nevada Division of Emergency Management (DEM) during the FY 2024 audit period, agrees that Federal Financial Reports (SF-425) should be prepared, reconciled, and reviewed in accordance with applicable federal requirements. During the audit period, DEM maintained financial management controls that included supervisory oversight, segregation of duties, and reconciliation of financial information prior to the submission of federal financial reports. The audit identified opportunities to better document these review procedures and demonstrate that reconciliations and supervisory reviews were consistently performed before SF-425 reports were submitted. Corrective Action Planned OEM has revised its Internal Control Manual to formally document the existing financial reporting controls governing the preparation and submission of SF-425 reports. The revised manual requires segregation of duties throughout the financial reporting process and establishes documented supervisory review, reconciliation of supporting financial records, and retention of supporting documentation prior to submission of federal financial reports. The revised Grant Management and Financial Management sections reinforce these requirements by requiring: • Reconciliation of financial data to the State's accounting records and grant financial records before submission. • Independent supervisory review of SF-425 reports for completeness, accuracy, and compliance with federal reporting requirements. • Documentation of the review and reconciliation process as part of the official grant file. • Segregation of duties between personnel responsible for preparing, reviewing, and approving financial reports. These revisions formalize existing financial reporting practices, strengthen documentation of supervisory reviews and reconciliations, and provide additional assurance that Federal Financial Reports are complete, accurate, and supported prior to submission. Responsible Official(s) • Jared Franco, Chief Fiscal Officer • Judith Lyman, Budget Officer Anticipated Completion Date Implemented through the 2026 Internal Control Manual. Revised financial reporting procedures are currently in effect and will be applied to all active and future Homeland Security Grant Program awards.

View Audit 411357

Finding 1230139 (2024-051)

Material Weakness 2024

State of Nevada

NV

Reporting Significant Deficiency

Finding: 2024-051: Certain amounts reported on the SSA-4513 (FFY2024 – 04-2204NVDI00) did not agree to underlying documentation. DETR did not have internal controls to ensure the amounts reported were adequately documented and supported. Inaccurate information was reported to the federal awarding ag...

Finding: 2024-051: Certain amounts reported on the SSA-4513 (FFY2024 – 04-2204NVDI00) did not agree to underlying documentation. DETR did not have internal controls to ensure the amounts reported were adequately documented and supported. Inaccurate information was reported to the federal awarding agency. Recommendation: DETR implements internal controls to ensure the amounts reported are adequately documented and supported. Corrective Action: Contact: Brett Martinez bjmartinez@detr.nv.gov, Jana Vaughn Jana.Vaughn@ssa.gov, Arturo Martinez a-martinez@detr.nv.gov We acknowledge the finding that certain amounts reported on the SSA‑4513 did not agree with underlying documentation and that internal controls were insufficient to ensure reported amounts were adequately supported. To address this, DETR will implement strengthened internal controls, including enhanced documentation requirements, supervisory review procedures, and reconciliation processes to ensure the accuracy and supportability of all reported information submitted to the federal awarding agency. The SSA-4513 reports are due no later than the 25th day of the month after the close of the quarter. DETR will fully implement and test the new controls and procedures prior to submitting the FFY26 Q4 reports (due by 10/25/26) to ensure they function as intended. Corrective actions related to this finding will be completed no later than October 31, 2026.

View Audit 411357

Finding 1230138 (2024-050)

Material Weakness 2024

State of Nevada

NV

Reporting Eligibility Material Weakness

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

View Audit 411357

Finding 1230138 (2024-050)

Material Weakness 2024

State of Nevada

NV

Reporting Eligibility Material Weakness

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.

View Audit 411357

Finding 1230137 (2024-049)

Material Weakness 2024

State of Nevada

NV

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Finding Number 2024-049 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Summary of Finding: Subrecipient amounts were originally reported incorrectly on the SEFA. The Nevada Health Authority (NVHA) did not have adequate internal controls to ensure paym...

Finding Number 2024-049 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Summary of Finding: Subrecipient amounts were originally reported incorrectly on the SEFA. The Nevada Health Authority (NVHA) did not have adequate internal controls to ensure payments to providers were not coded as subrecipient payments in accordance with the State of Nevada’s accounting policy. Prior to correction, amounts passed through to subrecipients on the SEFA were overstated by $977,084. We recommend NVHA enhance internal controls to ensure payments to providers are not coded as subrecipient payments in accordance with the State of Nevada’s accounting policy. NVHA Response: The Nevada Health Authority agrees with this finding. Contact Person(s): Russ Steele, Audit Manager Corrective Action Planned: Effective March 2024, NVHA enhanced its internal controls to ensure that provider payments are not incorrectly coded as subrecipient payments, in accordance with the State of Nevada’s accounting policies. NVHA has partnered with our vendor to update accounting codes so that subrecipient general ledger accounts are used only when payments are truly intended for subrecipients. At this time, NVHA utilizes subrecipient GLs 8575 and 8576 exclusively for school-based services payments. Anticipated Completion Date of Implementation of Corrective Action Plan : 03/31/2024

View Audit 411357

Finding 1230136 (2024-048)

Material Weakness 2024

State of Nevada

NV

Reporting Material Weakness

Finding Number 2024-048 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Summary of Finding: Amounts reported on the CMS-21 were not supported by the underlying accounting information. NVHA did not have adequate internal controls to ensure CMS-21 report...

Finding Number 2024-048 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Summary of Finding: Amounts reported on the CMS-21 were not supported by the underlying accounting information. NVHA did not have adequate internal controls to ensure CMS-21 reports were accurate or supporting documentation for reconciling items was maintained. A nonstatistical sample of two CMS-21 reports out of a population of four was selected for testing. NVHA was unable to provide Support for the following variances: December 31, 2023 CMS-21 Report Amount Reported Amount Supported Line 1a - Premiums Up to 150% of Poverty Level – Gross Premiums Paid $12,790,058 $10,620,925 Line 9 - Dental Services $603,625 $2,772,759 Line 18 – Screening Services $54,880 $57,168 March 31, 2024 CMS-21 Report Amount Reported Amount Supported Line 1a - Premiums Up to 150% of Poverty Level – Gross Premiums Paid $9,192.633 $7,629,522 Line 8 – Prescribed Drugs $295,759 $321,092 Line 9 - Dental Services $755,375 $2,318,487 We recommend NVHA enhance internal controls to ensure CMS-21 reports are accurate and supporting documentation is maintained. NVHA Response: The Nevada Health Authority agrees with this finding. Contact Person(s): Russ Steele, Audit Manager Corrective Action Planned: The Division has enhanced its internal controls to ensure the accuracy of CMS-21 reports and the proper maintenance of supporting documentation. The following measures have been implemented: 1.System of Record – DAWN: The state’s accounting system, DAWN, continues to serve as the Division’s official system of record for compiling CMS-21 reports. 2.Documentation of Transactions: The Division has transitioned to an electronic recordkeeping system for all financial transactions. This change enhances the accuracy, consistency, and accessibility of financial records while supporting improved internal controls. Electronic documentation is now maintained in accordance with established policies and is readily available for review, permitting more efficient audit processes and ensuring compliance with applicable record retention requirements. 3.Reporting Requirements for Certain Service Costs: Currently, several service costs are commingled within MMIS. To address this, the Division performs data downloads from MMIS to separate and identify these costs appropriately for CMS-21 reporting. The Federal Reporting Unit will ensure these MMIS reports are maintained to provide transparency and traceability. 4.Collaboration with Fiscal Agent: The Division is actively collaborating with its Fiscal Agent, Gainwell, to improve CMS-21 reporting. This includes the development of new “fiscal strings” designed to capture and isolate specific costs that must be reported separately. These efforts aim to enhance transparency and accuracy in federal reporting. These improvements reflect the Division’s commitment to strengthening financial reporting processes, ensuring compliance with federal requirements, and maintaining robust documentation standards. Anticipated Completion Date of Corrective Action Plan: September 2025

View Audit 411357

Finding 1230135 (2024-044)

Material Weakness 2024

State of Nevada

NV

Reporting

Audit Finding: 2024-044, Low-Income Home Energy Assistance, 93.568 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 di...

Audit Finding: 2024-044, Low-Income Home Energy Assistance, 93.568 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 also acknowledges this is a prior year finding. Corrective Action: The Division will adopt an internal grants manual that establishes the process for ensuring subaward information is submitted in accordance with the FFATA. The Division will also establish an internal audit and compliance committee to enhance oversight of existing policies for assessing risk (which include verifying suspension or debarment), 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

View Audit 411357

Finding 1230134 (2024-043)

Material Weakness 2024

State of Nevada

NV

Reporting Material Weakness

Finding Number: 2024-043 – Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: DSS did not have adequate internal controls to ensure amounts reported on the LIHEAP Quarterly Performance and Management Report were appropriately supported. Corrective Action Taken ...

Finding Number: 2024-043 – Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: DSS did not have adequate internal controls to ensure amounts reported on the LIHEAP Quarterly Performance and Management Report were appropriately supported. Corrective Action Taken or To Be Taken: The internal controls have been implemented to ensure the amounts are documented and reported accurately on the LIHEAP Quarterly Performance and Management Report. 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

View Audit 411357

Finding 1230131 (2024-042)

Material Weakness 2024

State of Nevada

NV

Reporting

Finding Number: 2024-042 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 2023-039.) Finding: Required subaward information was not...

Finding Number: 2024-042 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 2023-039.) Finding: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-039.). 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: Cathy Council, Management Analyst III Phone Number: 775-684-0679 Email: cacouncil@dss.nv.gov

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Finding 1230130 (2024-041)

Material Weakness 2024

State of Nevada

NV

Reporting Material Weakness

Finding Number: 2024-041 – Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: Certain amounts reported on the ACF-196R and ACF-204 did not agree to underlying documentation. Corrective Action Taken or To Be Taken: DSS has strengthened its review and...

Finding Number: 2024-041 – Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: Certain amounts reported on the ACF-196R and ACF-204 did not agree to underlying documentation. Corrective Action Taken or To Be Taken: DSS has strengthened its review and reconciliation procedures for the ACF-196R and ACF-204 reports. Before submission, Fiscal and Program staff will reconcile reported amounts to the underlying accounting records and supporting documentation, investigate and resolve any discrepancies, and document supervisory review and approval. Supporting documentation and evidence of review will be retained with each submitted report. If to be taken, estimated date of completion: Corrective actions implemented; ongoing review with each quarterly and annual report submission. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Crystal Buscay, Chief Financial Phone Number: 775-684-0682 Email: cbuscay@dss.nv.gov

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Finding 1230124 (2024-038)

Material Weakness 2024

State of Nevada

NV

Reporting Subrecipient Monitoring

Finding 2024-038: Reporting The Division of Public and Behavioral Health (DPBH) did not have internal controls to ensure subaward information was submitted in accordance with FFATA. Nevada Division of Public and Behavioral Health response: The Nevada Division of Public and Behavioral Health accepts ...

Finding 2024-038: Reporting The Division of Public and Behavioral Health (DPBH) did not have internal controls to ensure subaward information was submitted in accordance with FFATA. 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 implement internal controls to ensure subaward information is submitted in accordance with FFATA. Date of Completion: August 2026 Responsible Party: Michele Silzell, Administrative Services Officer III If you have any questions, please contact Kori Kendall, Auditor III at 775-684-3228 or by email at k.kendall@health.nv.gov.

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Finding 1230123 (2024-037)

Material Weakness 2024

State of Nevada

NV

Reporting Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

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.

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Finding 1230116 (2024-047)

Material Weakness 2024

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking

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

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Finding 1230115 (2024-046)

Material Weakness 2024

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking Material Weakness

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

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Finding 1230113 (2024-059)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking Cash Management Material Weakness

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

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Finding 1230109 (2024-035)

Material Weakness 2024

State of Nevada

NV

Reporting

Finding #2024-035 - Education Stabilization Fund, 84.425 Reporting - Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure subaward information is submitted timely in accordance wit...

Finding #2024-035 - Education Stabilization Fund, 84.425 Reporting - Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure subaward information is submitted timely in accordance with the FFATA. NDE Response NDE has developed a comprehensive Policy & Procedure documenting the timeline and process for FFATA reporting. At the time of this Corrective Action Plan, NDE is able to demonstrate timely and accurate FFATA reporting. Corrective Action NDE has completed corrective action for this finding. A comprehensive FFATA Reporting Policy and Procedure (1.11 FFATA Reporting) has been developed and implemented, documenting the required reporting timeline and submission procedures. Internal controls have been established to ensure subawards are reported timely and in compliance with FFATA requirements. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; Currently corrected. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

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Corrective Action Plans

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