Corrective Action Plans

Finding 1153954 (2023-011)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Eligibility Special Tests & Provisions § 200.303

Finding Number: 2023-011 Finding Name: Failure to Obtain Required Certifications for Child Care Providers Receiving American Rescue Plan Act Stabilization Funds Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain the required certifications at the time of applicatio...

Finding Number: 2023-011 Finding Name: Failure to Obtain Required Certifications for Child Care Providers Receiving American Rescue Plan Act Stabilization Funds Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain the required certifications at the time of application for certain providers of the Child Care Development Fund (CCDF) Cluster receiving American Rescue Plan Act (ARPA) stabilization funds. Name of Contact Person(s): Felicia Gray, Associate Director– Illinois Department of Human Services, Early Childhood Corrective Action(s): The IDHS’ Division of Early Childhood (DEC) has not received and does not anticipate receiving any new ARPA funding. For future consideration of funding, the IDHS will ensure that, in addition to meeting health and safety requirements, the providers will also complete certifications and attestations that verify that they meet the requirements and eligibility of the program. In addition, the DEC will train appropriate staff to review, identify, and implement any new Child Care grant/funding requirement(s). Proposed Completion Date: May 31, 2024 – Completed

View Audit 366965 Questioned Costs: $1

Finding 1153951 (2023-010)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303 § 200.332

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistan...

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistance for Needy Families (TANF) Cluster, the Childcare Cluster (CCDF), the Social Services Block Grant (SSBG), and the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) programs. More specifically, the IDHS did not perform on-site monitoring reviews of subrecipients in fiscal year 2023 in accordance with IDHS’ planned monitoring schedule and/or could not provide support for the review, did not provide timely notification (within 60 days) of the results of the programmatic on-site reviews, did not complete its quality reviews on a timely basis (within 60 days), did not receive corrective action plans from subrecipients after findings were identified during the reviews, and was unable to provide documentation evidencing monitoring of the quarterly program reports. Name of Contact Person(s): • Elizabth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services • Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery Corrective Action(s): IDHS - Division of Family and Community Services (FCS) FCS Associate Directors, in conjunction with staff from the Director’s Office, met and reviewed exceptions noted in the fiscal year 2022 single audit to determine any need for updated documentation and communication regarding subrecipient programmatic monitoring. The FCS reviewed the FCS Programmatic Monitoring Guidance Document and made necessary updates. IDHS - Division of Substance Use Prevention and Recovery (SUPR) The SUPR will hire an administrative assistant to assist with compliance monitoring tracking activities to maintain communication about important deadlines. The SUPR will also hire compliance monitors to engage in conducting compliance reviews. Additionally, the SUPR will meet weekly to track monitoring activities to ensure deadlines are met. Finally, the SUPR will review its policy and procedures to assess timelines associated with the monitoring process. Proposed Completion Date: • July 29, 2024 – Completed (FCS) • December 31, 2025 (SUPR)

View Audit 366965

Finding 1153944 (2023-009)

Material Weakness 2023

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Finding Number: 2023-009 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrec...

Finding Number: 2023-009 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Temporary Assistance for Needy Families (TANF), the CCDF Cluster (CCDF), the Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and the Social Services Block Grant (SSBG) programs. In addition, the IDHS did not establish control procedures to submit FFATA reports for all subawards as required by federal regulations. Name of Contact Person(s): • Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery • Brian Bond, Director – Illinois Department of Human Services, Office of Contract Administration Corrective Action(s): IDHS – The Division of Substance Use Prevention and Recovery (SUPR) - The IDHS will complete all backlog of FFATA reports in its grant making system. Additionally, the IDHS will assess and utilize resources in the grant implementation team to assist with entering FFATA data. Finally, the SUPR will cross-train new staff of FFATA reports in the new system. IDHS – The Division of Family and Community Services (FCS) and the Office of Contract Administration (OCA) - The IDHS’s OCA has been working for two fiscal years with the Illinois Department of Innovation and Technology (DoIT) and IL/ACTS to create an automated process to validate federal funds data in the IDHS’ grant making system. OCA, DoIT, and IL/ACTS will be testing the pre-implementation of the automated process to validate federal funds data in March/April 2025 for the FY26 IDHS grant making processes. (Completed 05/31/25) Proposed Completion Date: • March 1, 2026 (SUPR) • May 31, 2025 – Completed (OCA)

View Audit 366965

Finding 1153922 (2023-005)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting § 200.303 § 200.328

Finding Number: 2023-005 Finding Name: Failure to Accurately Prepare Financial Reports for the COVID-19 – Homeowner Assistance Fund Program Finding Condition(s): The Illinois Department of Human Services (IDHS) did not prepare accurate federal financial reports (Paperwork Reduction Act (PRA) 1505-02...

Finding Number: 2023-005 Finding Name: Failure to Accurately Prepare Financial Reports for the COVID-19 – Homeowner Assistance Fund Program Finding Condition(s): The Illinois Department of Human Services (IDHS) did not prepare accurate federal financial reports (Paperwork Reduction Act (PRA) 1505-0269) for the COVID-19 – Homeowner Assistance Fund (HAF) program. Additionally, the auditors noted that the IDHS’ supervisory review procedures of the PRA 1505-0269 reports have not been designed to operate at an appropriate level of precision to ensure the financial reports are accurately prepared. Name of Contact Person(s): Joseph Wellbaum, Chief Financial Officer – Illinois Department of Human Services Corrective Action(s): The IDHS will issue the updated quarterly Treasury data templates to the Illinois Housing Development Authority to collect all necessary data fields in order to accurately report and reconcile HAF expenditure information. (Completed 12/31/23) The IDHS and the Illinois Housing Development Authority will meet with the U.S. Treasury to clarify quarterly and annual reporting needs for the HAF program. (Completed 12/15/22) Proposed Completion Date: December 31, 2023 – Completed

View Audit 366965

Finding 1153921 (2023-004)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring § 200.303 § 200.332

Finding Number: 2023-004 Finding Name: Failure to Establish Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not perform a risk assessment or subrecipient monitoring procedures for the subrecipient of the COVID-19 – Homeowner Assistance Fu...

Finding Number: 2023-004 Finding Name: Failure to Establish Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not perform a risk assessment or subrecipient monitoring procedures for the subrecipient of the COVID-19 – Homeowner Assistance Fund (HAF) program. Name of Contact Person(s): Joseph Wellbaum, Chief Financial Officer – Illinois Department of Human Services Corrective Action(s): On September 10, 2024, the IDHS completed a fiscal and administrative review of the Illinois Housing Development Authority. Additionally, on March 5, 2024, the IDHS will complete a thorough programmatic review of the HAF program. Proposed Completion Date: September 10, 2024 – Completed

View Audit 366965

Finding 1153920 (2023-003)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.328

Finding Number: 2023-003 Finding Name: Failure to Accurately Prepare Performance Reports for the COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Program Finding Condition(s): The Illinois Governor’s Office of Management and Budget (GOMB) did not prepare accurate federal project and expe...

Finding Number: 2023-003 Finding Name: Failure to Accurately Prepare Performance Reports for the COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Program Finding Condition(s): The Illinois Governor’s Office of Management and Budget (GOMB) did not prepare accurate federal project and expenditure reports (Paperwork Reduction Act (PRA) 1505-0271) for the COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. Name of Contact Person(s): Lesley Winbush, Accountant – Illinois Governor’s Office of Management and Budget Corrective Action(s): GOMB will improve the reporting process by implementing checks to ensure that all expenditures are reported by State agencies. The checks will include comparing reported data against agency financial reports to ensure that the data is complete. Proposed Completion Date: June 30, 2026

View Audit 366965

Finding 1153918 (2023-002)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.332 § 200.521

Finding Number: 2023-002 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the single audit reports reviews for its subrecipients of the Special Suppl...

Finding Number: 2023-002 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the single audit reports reviews for its subrecipients of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Child and Adult Care Food Program (CACFP), Crime Victims Assistance Program (CVA), WIOA Cluster (WIOA), Highway and Planning Construction (Highway), Emergency Rental Assistance Program (ERAP), Homeowner Assistance Fund Program (HAF), Coronavirus State and Local Fiscal Recovery Funds (SLFRF), Twenty-First Century Community Learning Centers (Twenty-First), Title I Grants to Local Education Agencies (Title I), Supporting Effective Instruction State Grants (SEISG), Education Stabilization Funds (ESF), Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), Temporary Assistance for Needy Families Cluster (TANF), Child Support Enforcement (CSE), Low-Income Home Energy Assistance Program (LIHEAP), CCDF Cluster (CCDF), Social Services Block Grant (SSBG), and Block Grants for Prevention and Treatment of Substance Abuse (SAPT) in the State's Grant Accountability and Transparency Act (GATA) Audit Report Review Management System (ARRMS). Name of Contact Person(s): Keyria Rodgers, Grant Accountability and Transparency Unit Director – Illinois Governor’s Office of Management and Budget Corrective Action(s): The Grant Accountability and Transparency Unit (GATU) provides a centralized, uniform process and a system which State grant-making agencies are required to adhere to throughout the life cycle of the grant. The Illinois Governor’s Office of Management and Budget (GOMB) will develop and implement monitoring procedures to ensure the system is updated by agencies and accurate as to the completeness of the agencies’ report reviews, letter issuances, and desk reviews. Proposed Completion Date: December 31, 2025

View Audit 366965

Finding 1153281 (2023-004)

Material Weakness 2023

Dixon School District 9

MT

Subrecipient Monitoring Material Weakness

Corrective Action Planned: The Dixon Board of Trustees has updated policies and procedures in order to comply with the Davis-Bacon Act by ensuring any upcoming contracts include prevailing wage requirements to verify contractors submit weekly payroll reports or compliance statements. Action has been...

Corrective Action Planned: The Dixon Board of Trustees has updated policies and procedures in order to comply with the Davis-Bacon Act by ensuring any upcoming contracts include prevailing wage requirements to verify contractors submit weekly payroll reports or compliance statements. Action has been taken and the person responsible for corrective action: Principal/Federal Programs Director, Ryon Noland

View Audit 366468

Finding 1153153 (2023-001)

Material Weakness 2023

City of Lebanon

OH

Reporting Subrecipient Monitoring § 200.414 § 200.502 § 200.510

The City will review the process for identifying federal awards to minimize the likelihood of errors in preparing the schedule of expenditures of federal awards to minimize the likelihood of errors in preparing the schedule of expenditures of federal awards. This will include inquiries of the Engine...

The City will review the process for identifying federal awards to minimize the likelihood of errors in preparing the schedule of expenditures of federal awards to minimize the likelihood of errors in preparing the schedule of expenditures of federal awards. This will include inquiries of the Engineer’s Office.

View Audit 366390

Finding 1153111 (2023-003)

Material Weakness 2023

North Central Area Agency on Aging, Inc.

CT

Subrecipient Monitoring

Management will amend each subaward agreement to include all required identifying award information, including the allocation of state and federal funds to the award.

View Audit 366336

Finding 1152979 (2023-004)

Material Weakness 2023

Second Harvest Northern Lakes Food Bank

MN

Reporting Subrecipient Monitoring § 200.510

SHLNFB will ensure that all Federal Awards are carefully reviewed to confirm that the Federal Assistance Listing Number is accurately stated, the pass-through entity identifying numbers are correct, and are included in the correct Cluster.

View Audit 366283

Finding 1152977 (2023-007)

Material Weakness 2023

Second Harvest Northern Lakes Food Bank

MN

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

The Accountant prepares reimbursement requests and the Contracted Controller reviews and approves reimbursement before submission is submitted.

View Audit 366283

Finding 576439 (2023-052)

Significant Deficiency 2023

State of Nevada

NV

Subrecipient Monitoring

Date: September 5, 2025 Program: U.S. Department of Health and Human Services Foster Care – Title IV-E, CFDA 93.658 Corrective Action Plan Finding Number: 2023-052 Finding: The assistance listing number was not identified at the time of disbursement. Corrective Action Taken or To Be Taken Corrective...

Date: September 5, 2025 Program: U.S. Department of Health and Human Services Foster Care – Title IV-E, CFDA 93.658 Corrective Action Plan Finding Number: 2023-052 Finding: The assistance listing number was not identified at the time of disbursement. Corrective Action Taken or To Be Taken Corrective Action for previous year finding 2022-058 was completed in April 2024 with subaward policy revision and staff training of policy revision. An internal audit of assistance listing numbers (ALNs) on subrecipient disbursements in December 2025 verified that ALNs are included on disbursements. If already taken, date of completion: April 2024 (FY24) If to be taken, estimated date of completion: Agency Response Does the Agency agree with finding? The Nevada Division of Child and Family Services agrees with this finding. If no or partial, please explain reason(s) why: Additional Comments: Prior year finding 2022-058 Division Responsible for Corrective Action Name, Title Kelsey McCann-Navarro, Administrative Services Officer IV Address 4126 Technology Way Suite 300 City, State, Zip Code Carson City, NV 89706 Phone Number 775-684-4431 Email Kelsey.Navarro@dcfs.nv.gov

View Audit 366218

Finding 576427 (2023-041)

Significant Deficiency 2023

State of Nevada

NV

Subrecipient Monitoring § 200.332

Finding 2023-041 Program Information Program Name: Child Support Enforcement CFDA Number: 93.563 Summary of Finding Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Agency Response Agency agrees with this finding. Corrective Action Plan DSS contracts staff will form...

Finding 2023-041 Program Information Program Name: Child Support Enforcement CFDA Number: 93.563 Summary of Finding Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Agency Response Agency agrees with this finding. Corrective Action Plan DSS contracts staff will formally communicate to the Child Support Enforcement (CSEP) Chief the annual requirement to update the Subrecipient Federal Award Funding attachment with the current FAIN and Federal Grant Award date. A structured follow-up process will be implemented to confirm timely completion of the updated template and distribution to both the Subrecipient and DSS contracts staff for official records. These procedures will ensure that all subawards consistently include the required elements. Contact Person(s) Responsible Karen Stoycoff, Social Services Program Specialist Phone: 775-684-7436 Email: kstoycoff@dss.nv.gov Anticipated Completion Date September 30th, 2025.

View Audit 366218

Finding 576423 (2023-040)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring Internal Control / Segregation of Duties

Finding 2023-040 Program Information Program Name: Temporary Assistance for Needy Families, COVID-19 Temporary Assistance for Needy Families CFDA Number: 93.558 Summary of Finding Subrecipient Monitoring Material Weakness in Internal Control over Compliance Agency Response Agency agrees to this find...

Finding 2023-040 Program Information Program Name: Temporary Assistance for Needy Families, COVID-19 Temporary Assistance for Needy Families CFDA Number: 93.558 Summary of Finding Subrecipient Monitoring Material Weakness in Internal Control over Compliance Agency Response Agency agrees to this finding. Corrective Action Plan DSS has strengthened its subrecipient monitoring process through an enhanced tracking system that consolidates all subrecipients and aligns monitoring frequency with risk levels. Designated audit staff maintain the tracker, conduct and document risk assessments, assign monitoring levels, and perform the required reviews. Staff receive ongoing training on DSS policies, federal Uniform Guidance, and documentation standards. In addition, the Audit Liaison conducts quarterly reviews of the tracker to ensure timely monitoring and enhanced oversight for high-risk subrecipients. Contact Person(s) Responsible Catherine Council, Management Analyst II Phone: 775-684-0679 Email: cacouncil@dss.nv.gov Anticipated Completion Date September 30th, 2025.

View Audit 366218

Finding 576397 (2023-037)

Material Weakness 2023

State of Nevada

NV

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding #2023-037 – 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 #2023-037 – 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. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management, as well as the Office of District Support to develop these standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2026. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

Finding Reference: 2023-032 Federal Program: U.S. Department of Treasury – COVID19 Coronavirus State and Local Fiscal Recovery Fund (Assistance Listing 21.027) Agency: Aging and Disability Services Division (ADSD) Repeat Finding: Yes – prior year finding 20220-35 Contact Person: Rique Robb Division ...

Finding Reference: 2023-032 Federal Program: U.S. Department of Treasury – COVID19 Coronavirus State and Local Fiscal Recovery Fund (Assistance Listing 21.027) Agency: Aging and Disability Services Division (ADSD) Repeat Finding: Yes – prior year finding 20220-35 Contact Person: Rique Robb Division Administrator Aging and Disability Services Division 775-687-0971 RiqueRobb@adsd.nv.gov Finding: Assistance listing numbers were not communicated at the time of disbursement. Corrective Action Planned: The Aging and Disability Services Division will implement the following measures to ensure full compliance with 2 CFR 200.332 subrecipient monitoring requirements: 1.ALN Communication at Disbursement – Effective immediately, all payment notifications and remittance advices to subrecipients will include the ALN. 2.Internal Control Update – Annual review and biennial update of Departmental internal controls to ensure compliance with the Code of Federal Regulations. 3.Staff Training – Program and fiscal staff will receive training on Uniform Guidance requirements and ADSD’s updated procedures. Anticipated Completion Date: All corrective actions will be implemented no later than January 31, 2026. Responsible Official’s Views: The Aging and Disability Services Division concurs with the findings and is committed to strengthening internal controls to ensure compliance with subrecipient monitoring requirements.

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

Finding 2023-032: Subrecipient Monitoring: The Division of Public and Behavioral Health (DPBH) did not communicate the assistance listing number at the time of disbursement for pass through payments. Nevada Division of Public and Behavioral Health response: The Nevada Division of Public and Behavi...

Finding 2023-032: Subrecipient Monitoring: The Division of Public and Behavioral Health (DPBH) did not communicate the assistance listing number at the time of disbursement for pass through payments. 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 ensure staff are properly trained and internal controls are updated to meet the requirements of CFR 200.332. The ALN number will be listed on the line description at the time of payment to recipients. Date of Completion: September 2025 Responsible Party: Nevada Department of Public and Behavioral Health Administrative Fiscal Services Jamie Florence, Management Analyst IV Richard Wagner, Management Analyst IV

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

Audit Finding 2023-032: U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements. Recommendation: Recommend the Nevada Governor’s Finance Office (...

Audit Finding 2023-032: U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure compliance with subrecipient monitoring requirements. Agency Response: Does the agency Agree with the Finding:Yes Corrective Action: The Governor’s Finance Office internal controls include ensuring there is a risk assessment performed on all subrecipients. Enhancements have been made to staff training that risk assessment documentation must be maintained in the files. Date of Completion: Completed Approximately June 2023. Agency Contact: Lesa Galloway, ASOIV Office (775) 684-0239 lgalloway@finance.nv.gov

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

Finding Number: 2023-032 Summary of finding: Subawards were not entered into, assistance listing numbers were not communicated at the time of disbursement, an evaluation of the subrecipients risk for noncompliance for purposes of determining the appropriate subrecipient monitoring was not performed,...

Finding Number: 2023-032 Summary of finding: Subawards were not entered into, assistance listing numbers were not communicated at the time of disbursement, an evaluation of the subrecipients risk for noncompliance for purposes of determining the appropriate subrecipient monitoring was not performed, and subrecipient audit reports were not reviewed. Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements. Recommendation: The State agency should enhance internal controls to ensure compliance with subrecipient monitoring requirements. CAP Response: The agency agrees and accepts this finding and has taken the following steps to enhance internal controls to ensure compliance: The agency now has a subaward process and a subgrants manual. At the requirement of NDA Fiscal, approved subaward packets are being used for all applicable funding sources which include subrecipient risk assessments and subrecipient monitoring is being completed. Subaward packets are first approved by NDA Fiscal prior to distribution to recipients. The agency is developing a subaward process checklist to improve compliance with the process. Anticipated date of completion: December 30, 2025 CAP Contacts: Cathy Balcon, Administrator, Division of Administration Patricia Hoppe, Administrator, Division of Food and Nutrition

View Audit 366218

Finding 576390 (2023-030)

Significant Deficiency 2023

State of Nevada

NV

Procurement, Suspension & Debarment Subrecipient Monitoring

No 2023-030 Request for Update Condition: “Certain applicable provisions described in Appendix II to Part 200 were not included in contracts as required. Procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction.” Recommendation: “We rec...

No 2023-030 Request for Update Condition: “Certain applicable provisions described in Appendix II to Part 200 were not included in contracts as required. Procedures were not followed to verify if an entity was suspended or debarred before entering into a covered transaction.” Recommendation: “We recommend State Purchasing enhance internal controls to ensure all contracts under federal awards contain the applicable provisions and procedures are followed to ensure entities are not suspended or debarred prior to entering into covered transactions.” Agency Response and Corrective Action to be Taken: View of Responsible Official: The Nevada State Purchasing Department agrees with the finding. As part of Purchasing’s standard contracting procedures, and shortly after the audit findings were discussed with GFO in January 2024, the Purchasing Division commenced fulfilling the recommendations regarding provisions described in Appendix II to Part 200 that had not been consistently included in contracts as indicated below. When Purchasing leads a Request for Proposal (RFP) process and is notified - via Section 4 of the RFP Template provided to agencies utilizing Federal Awarded Funds – Purchasing ensures that all applicable federal provisions and procedures are incorporated into the solicitation, either by reference or as attachments. For state agencies conducting their own solicitation, Purchasing provides an RFP Template that requires identification of the relevant Code of Federal Regulations (CFR) to be referenced and included in the resulting contract, thereby supporting compliance with federal requirements. This corrective action (RE: provisions) has been actively in place since approximately January 2024. As part of Purchasing’s updated internal controls, and shortly after the audit finding was reported, the Purchasing Division commenced fulfilling the recommendation as indicated below regarding suspended or debarred entities. Prior to Purchasing awarding a contract, the responsible Purchasing Officer performs a SAM.gov check on the vendor in question, prints out the page indicating that the entity is not suspended or debarred and then the document is attached to the Bid in ePro (Nevada’s official online portal for government procurement), which is posted publicly. This corrective action (RE: debarred entities) has been actively in place since approximately July 2023. Department or Agency Responsible for Corrective Action Plan Agency: Department of Administration – Purchasing Division Contact: William Taylor, Administrator 515 E. Musser Street, Suite 300 Carson City, NV 89701 775-515-5173 BTaylor@admin.nv.gov

View Audit 366218

Finding 576389 (2023-029)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

Audit Finding: 2023-029 Homeowner Assistance Fund: 21.026 Subrecipient Monitoring Material Weakness in Internal Control over Compliance Summary: Subawards and disbursements did not contain all the required information, an evaluation of each subrecipient’s risk of noncompliance for purposes of determ...

Audit Finding: 2023-029 Homeowner Assistance Fund: 21.026 Subrecipient Monitoring Material Weakness in Internal Control over Compliance Summary: Subawards and disbursements did not contain all the required information, an evaluation of each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring was not performed. Recommendation: Implement internal controls to ensure compliance with subrecipient monitoring requirements. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division also acknowledges this is a prior year finding. The timing of the FY22 and FY23 state audits did not allow for any corrective actions to be reflected. Corrective Action: The Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is 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. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. 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 366218

Finding 576387 (2023-027)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

Audit Finding: 2023-027 Emergency Rental Assistance Program: 21.023 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Subawards did not contain all the required information, assistance listing numbers were not communicated at the time o...

Audit Finding: 2023-027 Emergency Rental Assistance Program: 21.023 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Subawards did not contain all the required information, assistance listing numbers were not communicated at the time of disbursement, and there was not adequate subrecipient monitoring. Recommendation: Enhance internal controls to ensure compliance with subrecipient monitoring. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division also acknowledges this is a prior year finding. The timing of the FY22 and FY23 state audits did not allow for any corrective actions to be reflected. Additionally, 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: In FY25, the Division moved ERAP to the Grants Team for management of the subrecipients and reporting. Additionally, the Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is 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. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. 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 366218

Finding 576384 (2023-025)

Significant Deficiency 2023

State of Nevada

NV

Subrecipient Monitoring Special Tests & Provisions HUD Housing Programs

Audit Finding 2023-025 U.S. Department of Transportation Highway Planning and Construction, 20.205 COVID-19 Highway Planning and Construction, 20.205 Special Tests and Provisions – Value Engineering Significant Deficiency in Internal Control over Compliance Summary of Finding: The Nevada Department ...

Audit Finding 2023-025 U.S. Department of Transportation Highway Planning and Construction, 20.205 COVID-19 Highway Planning and Construction, 20.205 Special Tests and Provisions – Value Engineering Significant Deficiency in Internal Control over Compliance Summary of Finding: The Nevada Department of Transportation (NDOT) is required to establish a value engineering (VE) program and ensure that a VE analysis is performed on all applicable projects. A VE analysis was not performed when required by NDOT policy because NDOT did not have adequate internal controls to ensure their VE policy was followed. Recommendation: NDOT should enhance internal controls to ensure the VE policy is followed or, if necessary, the VE policy is updated as needed and provided that it complies with federal requirements. Agency Response Does the Agency Agree with Finding: Yes Additional Comments: Current NDOT policy has a lower cost threshold (i.e. stricter) for VE analysis than the federal requirement, and the finding references and evaluated project at that lower threshold. NDOT has also had significant organizational and staffing changes since the creation of this, and many other, policies and is currently in the process of updating all agency policies. Corrective Action Action to be Taken: NDOT will update the internal policy and processes relating to VE, including roles and responsibilities and internal controls to match or exceed federal requirements and to meet agency needs and resources. Date of Completion or Estimated Completion: October 1, 2026 Contact Person: Mark Wooster, Performance Analysis Division Head, mwooster@dot.nv.gov

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Finding 576289 (2023-008)

Material Weakness 2023

Dakota County

MN

Subrecipient Monitoring Eligibility Material Weakness § 200.303 § 200.331

U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Direct Payment Award Period: 2023 Recommendation: We recommend that the County establish clear policies and procedures for formal review and approval of subrecipient monitoring checklis...

U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Direct Payment Award Period: 2023 Recommendation: We recommend that the County establish clear policies and procedures for formal review and approval of subrecipient monitoring checklists. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County already had established policies, procedures, and checklists related to subrecipient monitoring, but the selected subrecipient relationship did not have adequate, formal documentation that monitoring checklists were completed. Going forward the County will continue to train staff to follow these policies. The County has also put more resources towards its finance department’s audit unit in 2024 and 2025 to follow-up on the proper implementation of corrective action plans related to audit findings. Name of the contact person responsible for corrective action: Will Wallo, Finance Director Planned completion date for corrective action plan: December 31, 2024

View Audit 366181

Corrective Action Plans

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