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Reference Number: 2024-007 Finding Title: Reimbursable Expenditures Assistance Listing Number/Program: 20.205 – Highway Planning and Construction Agency / Pass-Through: U.S. Department of Transportation, passed through the California Department of Transportation Compliance Requirement: Allowable Cos...
Reference Number: 2024-007 Finding Title: Reimbursable Expenditures Assistance Listing Number/Program: 20.205 – Highway Planning and Construction Agency / Pass-Through: U.S. Department of Transportation, passed through the California Department of Transportation Compliance Requirement: Allowable Costs and Activities Management's Response Management concurs with the finding and acknowledges that improvements are necessary to strengthen StanCOG's internal controls over grant expenditure documentation, review, and reimbursement processes. The condition identified resulted from deficiencies in historical grant expenditure documentation and review procedures. During the period under audit, StanCOG did not have sufficiently documented processes in place to ensure that all costs charged to federal awards were supported by adequate documentation demonstrating the nature, amount, timing, allowability, and allocability of the expenditure prior to reimbursement submission. The unsupported expenditure identified during testing relates to a reimbursement claimed under the Highway Planning and Construction program. Management recognizes the importance of maintaining complete supporting documentation for all federal award expenditures and will work with the appropriate parties, including the grantor as necessary, to evaluate and resolve the questioned cost in accordance with applicable federal requirements. Since the period under audit, StanCOG has undergone significant changes within its Finance Department and has recently hired new management focused on strengthening financial controls, improving grant compliance practices, and rebuilding sustainable financial processes. Management is currently reviewing existing grant accounting and reimbursement procedures and is implementing enhanced controls to ensure federal expenditures are properly supported and reviewed prior to reimbursement requests. Management is implementing, or plans to implement, the following corrective actions: • Establish standardized grant expenditure review procedures requiring supporting documentation before costs are charged to federal awards or submitted for reimbursement. • Develop documentation requirements for grant-related expenditures, including invoices, contracts, payroll documentation, time records, and other supporting records necessary to demonstrate allowability and allocability. • Implement documented supervisory review procedures to verify that expenditures charged to federal programs are appropriate, supported, and comply with applicable federal requirements. • Improve coordination between Finance and program/project staff to ensure required supporting documentation is collected and retained timely. • Establish consistent grant file organization and retention procedures to ensure documentation supporting federal expenditures is readily available for monitoring and audit purposes. • Provide guidance and training to staff involved in grant administration, project management, and expenditure processing regarding federal cost principles and documentation requirements. • Review the questioned cost identified in the audit and coordinate with the appropriate grantor representatives regarding resolution, as necessary. Management recognizes the importance of strong grant management practices and maintaining adequate documentation to support the use of federal funds. StanCOG is committed to strengthening its internal control environment, improving grant expenditure review procedures, and ensuring that future reimbursement requests are supported by complete and appropriate documentation in accordance with federal requirements.
Reference Number: 2024-002 Finding Title: Delays in Financial and Single Audit Reporting Management's Response Management concurs with the finding and acknowledges that this is a repeat finding classified as a material weakness and material noncompliance. The delays identified in the completion of S...
Reference Number: 2024-002 Finding Title: Delays in Financial and Single Audit Reporting Management's Response Management concurs with the finding and acknowledges that this is a repeat finding classified as a material weakness and material noncompliance. The delays identified in the completion of StanCOG's financial statements and Single Audit reporting were the result of significant deficiencies in historical financial reporting processes that developed over multiple fiscal years. During the period under audit, StanCOG experienced complete turnover within its Finance Department, resulting in the loss of institutional knowledge and limited continuity in accounting operations. In addition, documented financial procedures were either incomplete or not consistently followed, resulting in delayed reconciliations, incomplete accounting records, and the inability to provide timely support for the external audit process. These conditions were further compounded by the extensive effort required to reconstruct multiple years of financial records, resolve historical accounting discrepancies, and complete outstanding reconciliations before the audit could proceed. As a result, the financial statement audit and Single Audit reporting package could not be completed within the required regulatory timeframe. Because the audit itself was significantly delayed, this finding is reported as a repeat finding. StanCOG has recently hired a new Finance Director and new Executive Director to lead the organization's financial recovery efforts and strengthen its internal control environment. Management has begun evaluating existing financial processes and is implementing corrective actions designed to improve the timeliness and accuracy of financial reporting and ensure compliance with applicable federal reporting requirements. Management is implementing, or plans to implement, the following corrective actions: • Develop and maintain a formal month-end and year-end financial closing calendar with clearly defined deadlines and assigned responsibilities. • Develop and document standardized financial close procedures and workflows for key accounting and reporting activities. • Perform recurring reconciliations of all significant balance sheet accounts throughout the fiscal year to minimize year-end adjustments and facilitate a timely close. • Establish documented management review procedures to monitor the timely completion of reconciliations, financial reporting, and audit support activities. • Improve coordination and communication with external auditors by identifying required schedules and supporting documentation earlier in the audit process. • Strengthen management oversight of the financial reporting process by regularly monitoring progress toward key reporting deadlines and addressing issues as they arise. • Continue rebuilding the Finance Department by establishing sustainable processes, cross-training staff, and improving documentation to promote continuity and long-term compliance. Management recognizes the importance of timely financial reporting and compliance with federal Single Audit requirements. While this finding reflects historical conditions that developed over multiple fiscal years, StanCOG is committed to implementing sustainable financial management practices and strengthening its internal control environment. Management believes these corrective actions will improve the timeliness, accuracy, and reliability of future financial reporting and help ensure compliance with all applicable regulatory requirements.
The Corporation agrees with the finding. Management has assigned the responsibility for monitoring and submitting the DCF and reporting package to specific personnel.
The Corporation agrees with the finding. Management has assigned the responsibility for monitoring and submitting the DCF and reporting package to specific personnel.
The Town will develop internal controls sufficient to ensure that compliance with future Single Audit report filing deadlines are met.
The Town will develop internal controls sufficient to ensure that compliance with future Single Audit report filing deadlines are met.
Comments on the Finding and Each Recommendation: The Corporation did not obtain HUD approval for a replacement reserve withdrawal totaling $16,954 during the year ended December 31, 2024. Management should transfer $16,954 from the operating account to the replacement reserve account. Action(s) take...
Comments on the Finding and Each Recommendation: The Corporation did not obtain HUD approval for a replacement reserve withdrawal totaling $16,954 during the year ended December 31, 2024. Management should transfer $16,954 from the operating account to the replacement reserve account. Action(s) taken or planned on the finding: Management concurs with the finding and transferred $16,954 on March 4, 2025 from the operating account to the replacement reserve account.
Comments on the Finding and Each Recommendation: The Corporation did not maintain resident security deposits in an amount equal to or greater than resident security deposits liabilities at all times during the year ended December 31, 2024. At December 31, 2024, the resident security deposit account ...
Comments on the Finding and Each Recommendation: The Corporation did not maintain resident security deposits in an amount equal to or greater than resident security deposits liabilities at all times during the year ended December 31, 2024. At December 31, 2024, the resident security deposit account was underfunded by $557. Management should ensure the security deposit account is adequately funded and transfer funds, if necessary, from the operating account to adequately fund the security deposit account. Action(s) taken or planned on the finding: Management concurs with the finding and intends to transfer funds from the operating account to adequately fund the security deposit account.
Comments on the Finding and Each Recommendation: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2024. The annual financial statements should be issued in a timely manner pursuant to the time...
Comments on the Finding and Each Recommendation: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2024. The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.
Finding 2024-002: The Corporation submitted the owner certified financial report withing ninety (90) days following the end of the fiscal year ending December 31, 2024, however did not furnish HUD with a complete audited annual financial report within nine (9) months following the end of the fiscal ...
Finding 2024-002: The Corporation submitted the owner certified financial report withing ninety (90) days following the end of the fiscal year ending December 31, 2024, however did not furnish HUD with a complete audited annual financial report within nine (9) months following the end of the fiscal year ending December 31, 2024. Comments on the Finding and Each Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) Taken or Planned on the Finding: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.
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.
Special Provisions Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material We...
Special Provisions Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of all the LCTS reports submitted by each collaborative member each quarter for accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of all required reports for the program. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026
Reporting Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in...
Reporting Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of all required reports for the program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of all required reports for the program. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026
Allowable Costs - Quarterly Review of State Time Study Listings Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through D...
Allowable Costs - Quarterly Review of State Time Study Listings Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of the state time study listings each quarter. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of the state time study listings each quarter. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026
Audit Finding 2024-025 Program name/assistance listing number: U.S. Department of Agriculture Direct and Pass-through Gretchen Swanson Center for Nutrition WIC Supplemental Nutrition Program for Women, Infants, and Children, 10.557 COVID-19 WIC Supplemental Nutrition Program for Women, Infants, and ...
Audit Finding 2024-025 Program name/assistance listing number: U.S. Department of Agriculture Direct and Pass-through Gretchen Swanson Center for Nutrition WIC Supplemental Nutrition Program for Women, Infants, and Children, 10.557 COVID-19 WIC Supplemental Nutrition Program for Women, Infants, and Children, 10.557 Finding: The Nevada State Purchasing Division of the Department of Administration did not have adequate internal controls to ensure contracts under federal awards contained all of the applicable contract provisions. Recommendation: We recommend State Purchasing enhance internal controls to ensure all contracts under federal awards contain the applicable provisions. Agency Response Does the Agency Agree with Finding: Yes Additional Comments: None Corrective Action Taken or to be Taken Action: 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. Date of Completion or Estimated Completion: Since there are active-holdover contracts, it will take an undetermined amount of time for the related mulit-year contracts to clear. 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
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.
Finding 2024-057 – Subrecipient Monitoring Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not maintain sufficient internal controls over subrecipient monitoring to ensure compliance with federal requirements. Specifically, the audi...
Finding 2024-057 – Subrecipient Monitoring Auditor's Summary of the Finding The auditors determined that the Nevada Division of Emergency Management (DEM) did not maintain sufficient internal controls over subrecipient monitoring to ensure compliance with federal requirements. Specifically, the auditors recommended that DEM strengthen its subrecipient monitoring program by implementing documented procedures for conducting risk assessments, monitoring activities, reviewing Single Audit reports, documenting corrective actions, and maintaining supporting records demonstrating oversight of subrecipients. 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 effective subrecipient monitoring is essential to ensuring compliance with federal grant requirements and safeguarding federal funds. During the audit period, DEM maintained comprehensive grant management processes that included oversight of subrecipient performance, reimbursement reviews, financial reporting, ongoing technical assistance, and continuous communication with subrecipients throughout the period of performance. The audit identified opportunities to further formalize and document these monitoring activities within the agency's written internal control framework. Corrective Action Planned OEM has comprehensively revised its Internal Control Manual to formally document its subrecipient monitoring program. The revised Grant Management chapter includes a dedicated Monitoring section that establishes standardized procedures for risk-based oversight of subrecipients throughout the grant lifecycle. The revised procedures require: • Risk assessments to determine the appropriate level of monitoring for each subrecipient. • Documented desk reviews and on-site monitoring, as appropriate based on risk. • Review of Single Audit reports and follow-up on identified findings affecting federal awards. • Documentation and tracking of corrective action plans when deficiencies are identified. • Ongoing technical assistance to subrecipients to promote compliance with federal and state requirements. • Documentation of monitoring activities, communications, and oversight within the official grant file. • Maintenance of complete subaward documentation supporting subrecipient oversight and compliance. These revisions fully incorporate the auditor's recommendations and establish a comprehensive, riskbased subrecipient monitoring framework consistent with the requirements of 2 C.F.R. Part 200. The revised Internal Control Manual strengthens documentation of existing monitoring practices while providing standardized procedures for oversight, technical assistance, corrective actions, and continuous monitoring of Homeland Security Grant Program subrecipients. Responsible Official(s) • Susan Coyote, Chief Grants Officer • Shealyne Slone, Preparedness Grants Supervisor Anticipated Completion Date Implemented through the 2026 Internal Control Manual. The revised subrecipient monitoring procedures are currently in effect and will be applied to all active and future Homeland Security Grant Program awards.
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.
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.
Finding 2024-054- Matching, Level of Effort, and Earmarking (Personnel Cost Limitation) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to track, accumulate, and monitor personnel and personnel-related expenditures to demonstrate complia...
Finding 2024-054- Matching, Level of Effort, and Earmarking (Personnel Cost Limitation) Auditor's Summary of the Finding The auditors concluded that DEM did not maintain sufficient internal controls to track, accumulate, and monitor personnel and personnel-related expenditures to demonstrate compliance with the statutory limitation that no more than 50 percent of Homeland Security Grant Program funds may be used for personnel activities. The auditors recommended that DEM strengthen internal controls to monitor compliance with the personnel cost limitation. DEM Response DEM respectfully disagrees with the conclusion that it lacked internal controls over compliance with the Homeland Security Grant Program personnel cost limitation. The FY 2023 FEMA Preparedness Grants Manual establishes that recipients and subrecipients may not use more than 50 percent of their awards for personnel activities unless a waiver is approved by FEMA and refers recipients to Information Bulletin 421b for additional guidance. The Manual, however, does not prescribe a specific methodology requiring recipients to maintain a cumulative statewide calculation or continuously monitor personnel expenditures in the manner described by the audit recommendation. Rather, FEMA reviews applications, proposed investments, and budgets for compliance with the applicable Notice of Funding Opportunity (NOFO) before issuing an award. DEM maintains an established system of internal controls over HSGP expenditures. All HSGP applications are reviewed by DEM staff for compliance with the annual NOFO, applicable federal statutes, FEMA guidance, and program eligibility requirements before submission to FEMA. Proposed investments and budgets are subsequently reviewed through Nevada's public governance process by the Nevada Resilience Advisory Committee (NRAC), the Urban Area Working Group (UAWG), the Nevada Homeland Security Finance Committee, and the Nevada Homeland Security Commission (NHSC), with participation from all applicants. Following award, DEM reviews every quarterly financial report submitted by HSGP subrecipients prior to reimbursement. Professional-level grant management staff review all reported expenditures for compliance with the FEMA-approved budget, grant award conditions, and applicable federal requirements. Each reimbursement request is subsequently reviewed and approved by supervisory staff before payment is authorized. This multi-level review process provides ongoing assurance that personnel expenditures remain consistent with FEMA-approved grant awards and subawards throughout the period of performance. Accordingly, DEM believes these preventive and detective controls provided reasonable assurance of compliance with the statutory personnel cost limitation throughout the audit period. Corrective Action Planned Although DEM believes its existing internal controls are effective, DEM recognizes the benefit of further documenting those controls. DEM has revised its Internal Control Manual to formally document grant administration responsibilities, supervisory review requirements, and financial oversight procedures. The revised manual incorporates existing procedures governing quarterly financial report reviews, supervisory approvals, reimbursement reviews, grant monitoring activities, and periodic evaluations of internal controls. These enhancements better document the controls already in place and provide additional evidence supporting DEM's compliance with FEMA-approved grant awards, subawards, and applicable federal requirements. Contact Person(s) Responsible for Corrective Action • Susan Coyote, Chief Grants Officer • Shealyne Slone, Preparedness Grants Supervisor Anticipated Completion Date Implementation completed through the FY 2026 Internal Control Manual. Procedures are currently in effect for all active and future Homeland Security Grant Program awards.
Finding 2024-053 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll Documentation) Auditor's Summary of the Finding The auditors concluded that the Nevada Division of Emergency Management (DEM) did not maintain sufficient documentation to support the allocation of employe...
Finding 2024-053 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll Documentation) Auditor's Summary of the Finding The auditors concluded that the Nevada Division of Emergency Management (DEM) did not maintain sufficient documentation to support the allocation of employee salaries and wages charged to the Homeland Security Grant Program. Specifically, documentation supporting payroll distributions was not available for all sampled payroll transactions, resulting in questioned payroll costs. The auditors recommended that DEM strengthen internal controls to ensure documentation supporting the distribution of employee salaries and wages is maintained. 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 documentation supporting payroll distributions should be consistently maintained and readily available to demonstrate compliance with applicable federal requirements. During the audit period, DEM maintained internal controls over payroll administration that included supervisory approval of employee payroll, salary certifications validating payroll distributions, and fiscal review of personnel costs charged to Homeland Security Grant Program awards. Salary certifications were used to verify that payroll distributions accurately reflected work performed and supported the allocation of personnel costs to applicable federal awards. The audit identified that salary certifications and supporting documentation for certain sampled payroll transactions were not available during the audit. While OEM believes these documentation deficiencies did not indicate that payroll costs were improperly charged to the grant, the absence of complete documentation for the sampled transactions limited DEM's ability to demonstrate compliance with the documentation requirements of 2 C.F.R. § 200.430. Corrective Action Planned OEM has revised its Internal Control Manual to strengthen documentation and retention requirements for personnel costs charged to federal awards. The revised Personnel and Payroll section formally requires salary certifications, payroll documentation, maintenance of personnel records, and grant-specific payroll documentation. The Grant Management section incorporates these documentation requirements into the administration of federal awards to ensure supporting records are retained as part of the official grant file. OEM will continue to use salary certifications to validate payroll distributions and will implement additional management oversight to ensure certifications and supporting payroll documentation are consistently completed, retained, and readily available for monitoring and audit purposes. These enhancements reinforce existing payroll controls while improving documentation retention and demonstrating compliance with 2 C.F.R. § 200.430. Responsible Official(s) • Jared Franco, Chief Fiscal Officer • Judith Lyman, Budget Officer Anticipated Completion Date Implemented through the 2026 Internal Control Manual. Revised documentation and record retention procedures are currently in effect and will be applied to all active and future Homeland Security Grant Program awards.
Finding: 2024-052: DETR does not have written procedures for verifying, before engaging the services of a provider and at least annually thereafter, whether provides have valid medical licenses and are not currently excluded, suspended, or barred from participation in federal or federally assisted p...
Finding: 2024-052: DETR does not have written procedures for verifying, before engaging the services of a provider and at least annually thereafter, whether provides have valid medical licenses and are not currently excluded, suspended, or barred from participation in federal or federally assisted programs; and whose license to provide health care is not currently lawfully revoked or suspended by any state licensing authority for reasons of fraud, abuse, or professional misconduct. In addition, DETR has an individual assigned to this task as part of the position’s job duties. However, there is no evidence of monitoring by someone other than the individual (segregation of duties and oversight) that this procedure was followed and the results were appropriate. Recommendation: DETR develop written policies and procedures over this process and implement a review and monitoring procedure to ensure the task has been completed accurately and timely. Corrective Action: Contact: Brett Martinez bjmartinez@detr.nv.gov, Jana Vaughn Jana.Vaughn@ssa.gov, Arturo Martinez a-martinez@detr.nv.gov DETR has completed the corrective actions associated with this finding. Written procedures have been developed and implemented to document the required verification steps. In addition, oversight controls have been established to ensure proper segregation of duties. These controls include supervisory monitoring to confirm that the assigned staff member performs the required verifications and that the results are appropriate and fully documented. This corrective action is complete.
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.
Date: July 24, 2026 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP) Medicaid Cluster: State Medicaid Fraud Control Units State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, Medical Assistance Program (Medicaid; Title X...
Date: July 24, 2026 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP) Medicaid Cluster: State Medicaid Fraud Control Units State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, Medical Assistance Program (Medicaid; Title XIX) 93.767/93.775/93.778 Finding Number: 2024-050 - Eligibility Material Weakness in Internal Control over Compliance. PARIS data was not utilized by the Nevada Health Authority (NVHA) or DSS to monitor residency changes to determine when managed care benefits needed to be terminated because a beneficiary had become a resident of another state for Medicaid purposes. Projected questioned costs of $16,257,975 (Medicaid) and $1,111,448 (CHIP) were identified. (Repeat of prior year finding 2023-054.) Corrective Action Taken or To Be Taken: The Division of Social Services (DSS) automated the PARIS process as of September 30, 2025. The automation is designed to streamline the quarterly PARIS process. Upon receipt of the file, the system generates initial requests for information to identified customers, requiring them to confirm Nevada residency. Customers are allowed 30 days to respond. Approximately five days after the initial request, reminder notices are issued by text message and email to customers who have not responded. Customers who fail to respond within the 30-day timeframe, or who confirm an out-of-state address, will be terminated in accordance with policy, while those confirming Nevada residency will retain eligibility. NVHA continues to implement processes to ensure that MMIS will receive closure information related to PARIS matches and report it to T-MSIS. Once DSS has determined that termination is needed within the timeframes outlined above, DSS will send a “Y” indicator to MMIS and proceed with the termination which will also terminate the member from managed care benefits. This enhancement was implemented in November 2025. In addition, another project which will update the PARIS indicator to include Concurrent Enrollment Matches (CEM) and Death Master File (DMF). Any terminations that are full under these will be reported with respective termination codes when this is implemented, which is currently estimated to be October 2026 but is subject to change. If to be taken, estimated date of completion: Completed (2025); ongoing quarterly operations. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Karen Stoycoff, Social Services Program Specialist Phone Number: 775-684-7436 Email: kstoycoff@dss.nv.gov Name, Title: Russell Steele, Nevada Health Authority Phone Number: 775-684-3609 Email: rsteele@nvha.nv.gov Name, Title: Jennifer Frischmann, Nevada Health Authority Phone Number: 775-684-3609 Email: j.frischmann@nvha.nv.gov
Finding Number 2024-050 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Medicaid Cluster: State Medicaid Fraud Control Units, 93.775 State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, 93.777 Medical Assistance...
Finding Number 2024-050 U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Medicaid Cluster: State Medicaid Fraud Control Units, 93.775 State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, 93.777 Medical Assistance Program (Medicaid; Title XIX), 93.778 Summary of Finding for 2024 Audit: PARIS data was not utilized by the Nevada Health Authority (NVHA) or the Nevada Division of Social Services (DSS) to monitor residency changes to determine when managed care benefits needed to be terminated because the beneficiary was a resident of another state for Medicaid purposes. NVHA and DSS did not have internal controls in place to effectively communicate the PARIS data between the two agencies to ensure managed care benefits were terminated when appropriate. Individuals are enrolled in Medicaid (and CHIP) plans in multiple states and benefits are not being terminated timely. Therefore, the State of Nevada is paying capitation payments to managed care organizations, when the benefits should have been terminated. We recommend NVHA and DSS implement internal controls to effectively communicate the PARIS data between each other and to ensure managed care benefits are terminated when appropriate. NVHA Response: The Nevada Health Authority agrees with this finding. Contact Person(s): Russ Steele, Audit Manager Corrective Action Planned: The Division of Social Services (DSS), which conducts eligibility and enrollment on behalf of Nevada Medicaid, automated the PARIS process as of September 30, 2025. The automation is designed to streamline the quarterly PARIS process. Upon receipt of the file, the system generates initial requests for information to customers identified, requiring them to confirm Nevada residency. Customers are allowed 30 days to respond. Approximately five days after the initial request, reminder notices are issued by text message and email to customers who have not responded. Customers who fail to respond within the 30-day timeframe, or who confirm an out-of-state address, will be terminated in accordance with policy, while those confirming Nevada residency will retain eligibility. NVHA continues to implement processes to ensure that MMIS will receive closure information related to PARIS matches and report it to T-MSIS. Once DSS has determined that termination is needed within the timeframes outlined above, DSS will send a “Y” indicator to MMIS and proceed with the termination which will also terminate the member from managed care benefits. This enhancement was implemented in November 2025. In addition, another project which will update the PARIS indicator to include Concurrent Enrollment Matches (CEM) and Death Master File (DMF). Any terminations that fall under these will be reported with respective termination codes when this is implemented, which is currently estimated to be October 2026 but is subject to change. Anticipated Completion Date of Corrective Action Plan: This corrective action plan was implemented on September 30, 2025.
Finding Number 2024-049 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
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
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