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Finding number: 2022-050 – Reporting Material Weakness in Internal Control over Compliance Finding: The projected unobligated balance (carryover amount) did not agree to the underlying actual unobligated balance and there was no underlying documentation or support to support the variance. Correctiv...
Finding number: 2022-050 – Reporting Material Weakness in Internal Control over Compliance Finding: The projected unobligated balance (carryover amount) did not agree to the underlying actual unobligated balance and there was no underlying documentation or support to support the variance. Corrective Action Taken or To Be Taken: Due to multiple staff vacancies, a written procedure for the reporting of Carryover Funds was delayed. Upon completion of those updated procedures in August 2023 in response to prior finding 2021-048, the reporting process for the projected unobligated balance is better understood and the tighter internal controls will ensure adequate documentation and review as required. If to be taken, estimated date of completion: These procedures were implemented August 14, 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
AUDIT FINDING 2022-062 Finding: U.S. Department of Health and Human Services 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 Repo...
AUDIT FINDING 2022-062 Finding: U.S. Department of Health and Human Services 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 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by underlying accounting information, and are presented in accordance with program requirements. The Nevada Division of Health Care Financing and Policy (DHCFP) is required to submit Quarterly Medicaid Statement of Expenditures for the Medical Assistance Program (CMS-64) reports based on actual recorded expenditures (42 CFR 430.30). Amounts reported on the CMS-64 were not supported by the underlying accounting information. DHCFP did not have adequate internal controls to ensure CMS-64 reports were accurate or supporting documentation for reconciling items was maintained. Inaccurate information may be reported to the federal awarding agency. A nonstatistical sample of two CMS-64 reports out of a population of four was selected for testing. DHCFP has manual adjustments to key line items within the CMS-64 from the general ledger. DHCFP did not maintain a record of any of the manual adjustments and we were unable to verify whether the manual adjustment was appropriate. In total, there were $91,007,519 in manual adjustments in the December 31, 2021 CMS-64 report and $121,971,786 in the March 31, 2022 CMS-64 report that we were unable to verify. Recommendation: We recommend DHCFP enhance internal controls to ensure CMS-64 reports are accurate and supporting documentation is maintained. Agency Response Does the Agency Agree with Finding?: Yes Additional Comments: None Corrective Action Taken or To Be Taken Action: The Division will enhance internal controls to ensure CMS-64 reports are accurate and supporting documentation is reviewed, reconciled, and maintained. The Division is actively filling vacancies and training staff to ensure reconciliations are perfomred to ensure the integrity of data and reports are correct. Date of Completion or Estimated Completion: December 2024 Department or Agency Responsible for Corrective Action Plan Agency: Department of Healthcare Financing and Policy Contact: Russ Steele, Audit Manager 1000 E William St., Suite 110 Carson City, NV 89701 (775) 684-3609 rsteele@dhcfp.nv.gov Reviewed and Approved 12/15/2023 Signature of Ashwini Prasad, Date Administrative Services Officer 4
CORRECTIVE ACTION PLAN FOR AUDIT FINDING AUDIT FINDING 2022-061 Finding: U.S. Department of Health and Human Services Children's Health Insurance Program (CHIP), 93.767 Medicaid Cluster: State Medicaid Fraud Control Units, 93.775; State Survey and Certification of Health Care Providers and Suppliers...
CORRECTIVE ACTION PLAN FOR AUDIT FINDING AUDIT FINDING 2022-061 Finding: U.S. Department of Health and Human Services Children's Health Insurance Program (CHIP), 93.767 Medicaid Cluster: State Medicaid Fraud Control Units, 93.775; State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, 93.777 Medical Assistance Program (Medicaid; Title XIX), 93.778 Eligibility Material Weakness in Internal Control over Compliance Title 42 Public Health section 435.403 State Residence provides that the State must provide Medicaid to eligible residents of the State, including residents who are absent from the State, except in cases where another state has determined that the person is a resident there for purposes of Medicaid. The Medicaid State Plan provides that the State has an eligibility determination system for data matching through the Public Assistance Reporting Information System (PARIS). The information that is requested is to be exchanged with states and other entities legally entitled to verify Title XIX applications and individuals eligible for covered Title XIX services consistent with applicable PARIS agreements. The State will transmit and receive data quarterly (February, May, August, and November). The State enrolls beneficiaries on a mandatory basis into managed care entities (managed care organizations and/or primary care case managers) in the absence of certain allowable waivers. The State contracts with managed care organizations and reimburses them for capitation payments. PARIS data was not utilized by the Division of Health Care Financing and Policy (DHCFP) or the Division of Welfare and Supportive Services (DWSS) to monitor residency changes to determine when managed care benefits needed to be terminated because the beneficiary was a resident of another state for Medicaid purposes. DHCFP and DWSS did not have internal controls in place to effectively communicate the PARIS data between the two agencies to ensure managed care benefits were terminated when appropriate. Individuals are enrolled in Medicaid (and CHIP) plans in multiple states and benefits are not being terminated timely. Therefore, the State of Nevada is paying capitation payments to managed care organizations, when the benefits should have been terminated. Projected questioned costs are $12,743,890 for Medicaid and $186,062 for CHIP. No sampling was used. The PARIS data was obtained and examined in total. The PARIS data included 56,892 participants with dual enrollment. Of those 56,892 participants, 9,722 participants were enrolled in another state after the State of Nevada. The projected questioned costs were estimated by performing the following: • Identifying individuals who enrolled in another state after they had enrolled in Nevada (termination date for Nevada). • Estimating a weighted average capitation payment based on demographics that determine the payment amount. • Applying the weighted average capitation payments from the termination date through June 30, 2022 to determine the total projected questioned costs. • The total projected questioned costs were then allocated between Medicaid and CHIP using participant counts in each plan between the ages of 0-18. Participants older than 18 were allocated to Medicaid. The allocated projected questioned costs were then multiplied by a weighted average Federal Medical Assistance Percentage (FMAP) to determine the final projected federal questioned costs. Recommendation: We recommend DHCFP and DWSS implement internal controls to effectively communicate the PARIS data between each other and to ensure managed care benefits are terminated when appropriate. Agency Response Does the Agency Agree with Finding?: Yes Additional Comments: None. Corrective Action Taken or To Be Taken Action: The Division is in the process of updating its policies and procedures for its Public Assistance Reporting Information System (PARIS) data matching process, which occurs on a quarterly basis (i.e., once every February, May, August, and November). Currently, the process is primarily a manual caseworker process conducted by caseworker staff at DWSS. However, in many states; this activity is an automated process and considered a program-integrity function of the Medicaid program rather than an eligibility function. Nevada agrees with this practice and intends to implement an automated process, while transitioning the PARIS data matching process to its program-integrity unit at the Division. To do this, the Division will be procuring a vendor to establish a Surveillance and Utilization Review section (SUR) data system, which will include the PARIS data matching process, with new federal funds from the American Rescue Plan Act (ARPA). DHCFP has started the Request for Proposal (RFP) process for this new SUR Data System. DHCFP anticipates a contract start date of January 1, 2024 and an estimated implementation date of December 31, 2024. By automating and streamlining this process in the future, Nevada Medicaid aims to increase the state's capacity to act more quickly on eligibility redeterminations that stem from a PARIS data match finding. In return, this will allow the program to adjust enrollment and payments to managed care plans, more quickly. This adjustment process is fully automated in the Division's Medicaid Management Information System (MMIS) which was certified by CMS in May of 2019. Date of Completion or Estimated Completion: December 31, 2024 Department or Agency Responsible for Corrective Action Plan Agency: Contact: Department of Healthcare Financing and Policy Russ Steele, Audit Manager 1000 E William St., Suite 110 Carson City, NV 89701 (775) 684-3609 rsteele@dhcfp.nv.gov Signature of Sandie Ruybalid, Deputy Administrator
View Audit 290300 Questioned Costs: $1
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care and Development Fund, 93.596 Finding Number: 2022-054 – Reporting Material Weakness in Internal Control over Compliance and Material Non...
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care and Development Fund, 93.596 Finding Number: 2022-054 – Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: Affects all grant awards included under assistance listings 93.575 and CFDA 93.596 on the Schedule of Expenditures of Federal Awards. The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Corrective Action Taken or To Be Taken:DWSS is currently bringing FFATA reporting up to date. The Grant Procurement Officer has been assigned to enter federal grants following the necessary requirements. Procedures to overcome this finding will be authored and approved by leadership. If to be taken, estimated date of completion: The project’s anticipated completion date is July 1, 2024. Agency Response Does the Agency agree with finding: Yes Individual Responsible for Corrective Action Plan: Name, Title: Gary Long, Chief of FACT Phone Number: 775-684-0655 Email: gxlong@dwss.nv.gov Reviewed and Approved Crystal Buscay, CFO
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care & Development Fund, 93.596 Finding number: 2022-053 – Reporting Material Weakness in Internal Control over Compliance and Material Nonco...
U.S. Department of Health and Human Services CCDF Cluster: Child Care and Development Block Grant, 93.575 Child Care Mandatory and Matching Funds of the Child Care & Development Fund, 93.596 Finding number: 2022-053 – Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: The Division of Welfare and Support Services (DWSS) did not maintain underlying documentation to support the amounts reported in the ACF-696 reports. Corrective Action Taken or To Be Taken: Due to multiple staff vacancies, reporting documentation had been misfiled in accordance with the Division’s existing internal controls. The Division has added additional internal controls to validate that the fiscal amounts reported on the ACF-696 will have supporting documentation in the applicable state fiscal year and additional guidance will be provided to new staff on those tighter internal controls. If to be taken, estimated date of completion: These procedures were implemented July 1, 2023. Agency Response Does the Agency agree With finding: Yes If No or Partial, please Explain reason(s) why: Individual Responsible for Corrective Action Plan: Name, Title: Brooke Barlow, Chief of Fiscal Phone Number: 775-684-0659 Email: bebarlow@dwss.nv.gov Reviewed and Approved Crystal Buscay, CFO
Finding 367123 (2022-046)
Significant Deficiency 2022
Finding #2022-046 – Education Stabilization Fund, CFDA 84.425 Other – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure payments to subrecipients are recorded to the de...
Finding #2022-046 – Education Stabilization Fund, CFDA 84.425 Other – Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure payments to subrecipients are recorded to the designated subrecipient general ledger accounts within the chart of accounts. NDE Response NDE agrees with this finding. Corrective Action NDE shall develop a comprehensive Policy and Procedure (1.15 SEFA Reporting) documenting the process for the development, review, and finalization of all SEFA reports. 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 revise existing internal controls to expand the controls applied as it relates to verifications and reviews/approvals. The Office of Division Compliance will collaborate with the Office of Fiscal Operations to develop and finalize these documents. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance and Fiscal Operations; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
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.
Finding #2022-043 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required informati...
Finding #2022-043 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Efforts to ensure consistent business practices within the Student Investment Division are underway. Corrective Action NDE shall develop a comprehensive Policy and Procedure (1.9 Title I ESEA MOE) documenting the process for the development, review, and finalization of the MOE report. Supplemental to the Policy and Procedure, NDE shall develop a Business Rule which clearly crosswalks source data to reporting outcomes. This business rule shall integrate principles from NDE’s Records Management Program, to include clear file architecture for supporting documentation. A checklist detailing the chain of review shall also be implemented to track the review and approval process of federal reports prior to submission. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with the Office of District Support Services to develop and finalize these documents. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of District Support Services and Division Compliance; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
Finding #2022-041 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Significant Deficiency in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal contr...
Finding #2022-041 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Significant Deficiency in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to level of effort is tracked and supporting documents are maintained. NDE Response NDE maintains that the Governor’s Finance Office was responsible for the maintenance of effort for higher education. Evidence of the review process was lost following the departure of a former employee; however, upon becoming aware of the issue, NDE has worked to identify and mitigate the situation to the best of our ability. Corrective Action NDE shall develop a comprehensive Business Rule documenting the process for the development, review, and finalization of the ESF MOE report, to include clear crosswalks between source data and reporting outcomes. This business rule shall integrate principles from NDE’s Records Management Program, to include clear file architecture for supporting documentation. A checklist detailing the chain of review shall also be implemented to track the review and approval process of federal reports prior to submission. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with offices across the Student Investment Division to develop this documentation. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
Finding #2022-042 – Education Stabilization Fund, CFDA 84.425 Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure earmarking requirements are initially met and im...
Finding #2022-042 – Education Stabilization Fund, CFDA 84.425 Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure earmarking requirements are initially met and implement internal controls to ensure ongoing compliance is monitored. NDE Response At the time of this Corrective Action Plan, NDE is able to demonstrate appropriate earmarking for summer enrichment and after-school programs. Related to earmark monitoring, upon receipt of a grant award, NDE utilizes a Notice of Incoming Funding Form pursuant to Policy and Procedure 10.2 Funding Opportunities; this form and corresponding policy include information regarding the grant funding and support whether an earmarking spreadsheet would be necessary. Corrective Action NDE shall develop a comprehensive Policy and Procedure (10.12 Match, Maintenance of Effort, and Earmarking) documenting the earmarking process, to include monitoring; additional information shall be added to 10.1 Grant Applications and 10.2 Funding Opportunities to ensure smooth establishment of necessary forms related to the funding requirements. Training on these Policies shall be provided across the agency. NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with the Office of School and Student Supports to develop and finalize these documents. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance; Student Achievement Division, Office of Student and School Supports; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
Finding #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.
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.
Finding 367115 (2022-038)
Significant Deficiency 2022
Finding #2022-038 – 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 the State per-Pupil Expenditur...
Finding #2022-038 – 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 the State per-Pupil Expenditure Report is complete accurately. 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 (1.10 F-33 Report, Annual Survey of School System Finances) documenting the process for the development, review, and finalization of the F-33 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.
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
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
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
Finding 367107 (2022-030)
Significant Deficiency 2022
Audit Finding: 2022-030 Homeowner Assistance Fund: 21.026 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no evidence that the one-time interim report was reviewed by an individual separate from the preparer. Recommendation: Implement internal controls to ens...
Audit Finding: 2022-030 Homeowner Assistance Fund: 21.026 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no evidence that the one-time interim report was reviewed by an individual separate from the preparer. Recommendation: Implement internal controls to ensure compliance with subrecipient monitoring requirements. Agency Response: The Division agrees with the finding. The Division would like to note, and be given consideration for, the substantive fact of the context of the time period in a pandemic, a once in a lifetime crisis that was impacting daily work and personal lives of all Nevadans, including Division staff. Corrective Action: The Division will establish an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business. The internal audit and compliance committee will be responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. This will include ensuring policies and procedures are followed in which reports submitted to federal funders are reviewed by an individual independent of the preparation of the reports. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov
Audit Finding: 2022-027 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
Finding 367104 (2022-026)
Significant Deficiency 2022
Audit Finding: 2022-026 Emergency Rental Assistance Program: 21.023 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no review of the SF-425 reports or Quarterly Reports by an individual independent of the preparation of the reports. Recommendation: Implement i...
Audit Finding: 2022-026 Emergency Rental Assistance Program: 21.023 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no review of the SF-425 reports or Quarterly Reports by an individual independent of the preparation of the reports. Recommendation: Implement internal controls to ensure reports are reviewed prior to submission. 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. This will include ensuring policies and procedures are followed in which reports submitted to federal funders are reviewed by an individual independent of the preparation of the reports. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov
Audit Finding 2022-025: 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
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
Audit Finding 2022-024: U.S. Department of the Treasury Coronavirus Relief Fund, 21.019 Finding: Some expenditures were not reported in the appropriate classification or by vendor. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure Financial P...
Audit Finding 2022-024: U.S. Department of the Treasury Coronavirus Relief Fund, 21.019 Finding: Some expenditures were not reported in the appropriate classification or by vendor. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure Financial Progress Reports are prepared in accordance with governing requirements. Agency Response: Does the agency Agree with Finding: Yes Additional Comments: The GFO relied on the U.S. Department of Treasury guidance, frequently asked questions and other reporting and recordkeeping documents to administer the fund. This information was revised multiple times throughout the grant period, which was extended for an additional year on December 28, 2020, two days before it was to expire in December 2020 causing difficulties in decision determination. It wasn’t until the guidance for the American Rescue Plan Act was received and reviewed that the manner in which the reporting for the payments to state agencies was questioned. Corrective Action: On November 12, 2021, a request was sent to the CARES help desk at U.S. Department of Treasury for clarification regarding state agency reimbursements for COVID related expenditures. This response verified that reporting for state agency reimbursement needed to be completed for each vendor by contract, grant or direct payment over $50,000. Once confirmation was received from U.S. Department of Treasury, the process to determine expenditures by vendor over $50,000 (reporting under contract, direct or grant) for each State Agency Reimbursement Project by Fiscal Year. This analysis was in process while the Single Audit was ongoing and was completed and reported in GrantSolutions for the quarter ending June 2022. The reporting during this quarter was revised to address the finding of payroll costs separated by fiscal year according to the dropdown categories of substantially dedicated public health and safety and administrative leave. These payroll costs were eliminated from the Direct section in the reporting portal to the Aggregate of Direct Payments to Individuals section in the amount of $304,516,094 since the payroll was for the prime recipient. Date of Completion: October 2022 Department or Agency Responsible for Corrective Action Plan: Agency: Nevada Governor’s Finance Office Contract: Brenda Berry 200 Musser Street, Ste 200 Carson City, NV 89703 Signature: Amy Stephenson, Director
Finding 2022-021 Investigations performed by the UI BAM supervisor or senior investigator are not reviewed by someone other than the investigator. In addition, completion of cases and timely data entry requirements were not met. A nonstatistical sample of 60 completed BAM cases out of a population ...
Finding 2022-021 Investigations performed by the UI BAM supervisor or senior investigator are not reviewed by someone other than the investigator. In addition, completion of cases and timely data entry requirements were not met. A nonstatistical sample of 60 completed BAM cases out of a population of 734 was selected for testing. The investigator and reviewer were the same person for 17 of the cases tested. In addition, a time lapse report of case completion was examined for paid claims accuracy. Of these investigations, 85.19% of the cases were completed within 90 days, rather than the 95% required. In addition, the total completion was 92.12% complete, rather than the 98% completion required. Recommendation We recommend the Department implement internal controls to ensure appropriate segregation of duties on all BAM investigations and to ensure timeliness requirements are met. Nevada DETR’s Response The Employment Security Division’s Unemployment Insurance Support Services (UISS) recognizes the importance of internal controls for a system of checks and balances to ensure no one person has control over all parts of BAM investigations, and to ensure investigation timeliness. Background: BAM timeliness has been impacted since 2020 due to many factors that include but are not limited to significant staff turnover (i.e., retirement, promotions, and recruitment/retainment of qualified staff). Historically, the BAM supervisor PCN 5089 has been tasked with training and reviewing new staff work and activities, which resulted in experienced investigators’ work not being reviewed in attempts to meet timeliness on other BAM cases. Nevada DETR ESD UISS’ Corrective Action Plan: Attached (ATTACHMENT A) is DETR’s Benefit Accuracy Measurement (BAM) Segregation of Duties Internal Control. Estimated Date of Completion: COMPLETED Contact Person: Kristine K. Nelson, ESD Administrator, DETR/ESD (775)684-3828, kknelson@detr.nv.gov
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
Finding 367092 (2022-022)
Significant Deficiency 2022
Finding 2022-022 Accurate and timely subaward information was not reported in the FFATA Subaward Reporting System (FSRS). A nonstatistical sample of three out of a population of eight applicable subawards obligations during the year was selected for testing: Obligation dates were reported as October...
Finding 2022-022 Accurate and timely subaward information was not reported in the FFATA Subaward Reporting System (FSRS). A nonstatistical sample of three out of a population of eight applicable subawards obligations during the year was selected for testing: Obligation dates were reported as October 1, 2021 for all three subawards rather than August 2, 2021 (two subawards) or September 22, 2021 (one subaward). Recommendation We recommend the Department implement internal controls to ensure subaward information is submitted in accordance with the FFATA. Nevada DETR’s Response DETR-Fiscal Management Unit has established a procedure for FFATA Sub-Contract and Award Reporting. This procedure was placed in effect in May 2023 and will be provided as an attachment to DETR’s corrective action plan. In addition to the newly implemented procedure, internal controls have been updated - the Grants and Projects Analyst will be responsible for implementing this process and ensuring the reports are submitted in accordance with the FFATA. 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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