Corrective Action Plans

Finding 1230135 (2024-044)

Material Weakness 2024

State of Nevada

NV

Reporting

Audit Finding: 2024-044, Low-Income Home Energy Assistance, 93.568 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Required subaward information was not reported per the Federal Funding Accountability and Transparency Act (FFATA). FFATA requires di...

Audit Finding: 2024-044, Low-Income Home Energy Assistance, 93.568 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Required subaward information was not reported per the Federal Funding Accountability and Transparency Act (FFATA). FFATA requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Recommendation: Implement internal controls to ensure subaward information is submitted in accordance with FFATA. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division also acknowledges this is a prior year finding. Corrective Action: The Division will adopt an internal grants manual that establishes the process for ensuring subaward information is submitted in accordance with the FFATA. The Division will also establish an internal audit and compliance committee to enhance oversight of existing policies for assessing risk (which include verifying suspension or debarment), monitoring and sharing best practices across its business. The internal audit and compliance committee will be responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

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Finding 1230134 (2024-043)

Material Weakness 2024

State of Nevada

NV

Reporting Material Weakness

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

Finding Number: 2024-043 – Material Weakness in Internal Control over Compliance and Material Noncompliance Finding: DSS did not have adequate internal controls to ensure amounts reported on the LIHEAP Quarterly Performance and Management Report were appropriately supported. Corrective Action Taken or To Be Taken: The internal controls have been implemented to ensure the amounts are documented and reported accurately on the LIHEAP Quarterly Performance and Management Report. If to be taken, estimated date of completion: Corrective action in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Brooke Barlow, Administrative Services Officer III- Chief of Fiscal Services Phone Number: 775-684-0659 Email: bebarlow@dss.nv.gov

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Finding 1230131 (2024-042)

Material Weakness 2024

State of Nevada

NV

Reporting

Finding Number: 2024-042 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance. Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-039.) Finding: Required subaward information was not...

Finding Number: 2024-042 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance. Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-039.) Finding: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-039.). Corrective Action Taken or To Be Taken: This requirement has been incorporated into DSS internal controls to ensure subaward reporting is completed timely and in compliance with FFATA. Designated staff are responsible for monthly submission, documentation, and verification, with internal review procedures in place to confirm accuracy and completeness. All reports were brought current, and ongoing reporting is now embedded in standard operating procedures to maintain compliance. If to be taken, estimated date of completion: Corrective action in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Cathy Council, Management Analyst III Phone Number: 775-684-0679 Email: cacouncil@dss.nv.gov

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Finding 1230130 (2024-041)

Material Weakness 2024

State of Nevada

NV

Reporting Material Weakness

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

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

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Finding 1230129 (2024-040)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2024-040 – Matching, Level of Effort, and Earmarking – Significant Deficiency in Internal Control over Compliance Finding: As provided by 45 CFR section 264.1, the average monthly number of families that include an adult or minor child head of household, or the spouse of the head of ...

Finding Number: 2024-040 – Matching, Level of Effort, and Earmarking – Significant Deficiency in Internal Control over Compliance Finding: As provided by 45 CFR section 264.1, the average monthly number of families that include an adult or minor child head of household, or the spouse of the head of household, who has received assistance under any state program funded by federal TANF funds for more than 60 countable months (whether or not consecutive) may not exceed 20 percent of the average monthly number of all families to which the state provided assistance during the fiscal year or the immediately preceding fiscal year (but not both), as the state may elect. (Repeat of prior year finding 2023-038.) Corrective Action Taken or To Be Taken: DSS has established formal procedures to ensure TANF matching, level of effort, and earmarking requirements are consistently monitored. The TANF NEON Cash Hardship Report is now published and distributed to executive staff on a quarterly basis. Following publication, executive staff review the report and provide confirmation that program expenditures align with federal requirements. Documentation of each review is maintained as part of the official record to demonstrate compliance. These procedures ensure accurate tracking, timely oversight, and verification that TANF expenditures meet required match, level of effort, and earmarking standards. If to be taken, estimated date of completion: Corrective actions in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Jacqeline Marchetti, Social Service Chief III Phone Number: 702—631-2337 Email: jmarchetti@dss.nv.gov

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Finding 1230125 (2024-039)

Material Weakness 2024

State of Nevada

NV

Subrecipient Monitoring

Finding 2024-039: Subrecipient Monitoring The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls in place to ensure compliance with its subrecipient monitoring policy occurred. Nevada Division of Public and Behavioral Health response: The Nevada Division of Publi...

Finding 2024-039: Subrecipient Monitoring The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls in place to ensure compliance with its subrecipient monitoring policy occurred. Nevada Division of Public and Behavioral Health response: The Nevada Division of Public and Behavioral Health accepts this finding and will initiate corrective action as described below. Corrective Action: The Division of Public and Behavioral Health will enhance internal controls to ensure compliance with its subrecipient monitoring policies. Date of Completion: August 2026 Responsible Party: Kagan Griffin, Health Program Manager II Kailynn Griffith, Health Program Manager II If you have any questions, please contact Kori Kendall, Auditor III at 775-684-3228 or by email at k.kendall@health.nv.gov.

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Finding 1230124 (2024-038)

Material Weakness 2024

State of Nevada

NV

Reporting Subrecipient Monitoring

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

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

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Finding 1230123 (2024-037)

Material Weakness 2024

State of Nevada

NV

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

Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. Nevada Division...

Finding 2024-037: Reporting The Division of Public and Behavioral Health (DPBH) did not have adequate internal controls to ensure quarterly fiscal reports were reviewed by a person other than the preparer and that certain information reconciled to underlying supporting documentation. Nevada Division of Public and Behavioral Health response: The Nevada Division of Public and Behavioral Health accepts this finding and will initiate corrective action as described below. Corrective Action: The Division of Public and Behavioral Health will enhance internal controls to ensure the Quarterly Fiscal Reports are reconciled to underlying supporting documentation and are reviewed by an individual independent of the preparation of the reports. Date of Completion: August 2026 Responsible Party: Kagan Griffin, Health Program Manager II Kailynn Griffith, Health Program Manager II If you have any questions, please contact Kori Kendall, Auditor III at 775-684-3228 or by email at k.kendall@health.nv.gov.

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Finding 1230122 (2024-036)

Material Weakness 2024

State of Nevada

NV

Procurement, Suspension & Debarment

Audit Finding 2024-036 Program name/assistance listing number: U.S. Department of Health and Human Services Epidemiology and Laboratory Capacity for Infectious Disease, 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Disease, 93.323 Finding: The Nevada State Purchasing Division o...

Audit Finding 2024-036 Program name/assistance listing number: U.S. Department of Health and Human Services Epidemiology and Laboratory Capacity for Infectious Disease, 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Disease, 93.323 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

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Finding 1230116 (2024-047)

Material Weakness 2024

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking

Finding Number: 2024-047 - Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance. Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-049.) Corrective Action Taken or To Be Taken: This...

Finding Number: 2024-047 - Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance. Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). (Repeat of prior year finding 2023-049.) Corrective Action Taken or To Be Taken: This requirement has been incorporated into DSS internal controls to ensure subaward reporting is completed timely and in compliance with FFATA. Designated staff are responsible for monthly submission, documentation, and verification, with internal review procedures in place to confirm accuracy and completeness. All reports were brought current, and ongoing reporting is now embedded in standard operating procedures to maintain compliance. If to be taken, estimated date of completion: Corrective action in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Catherine Council, Management Analyst III Phone Number: 775-684-0679 Email: cacouncil@dss.nv.gov

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Finding 1230115 (2024-046)

Material Weakness 2024

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking Material Weakness

Finding Number: 2024-046 - Reporting – Material Weakness in Internal Control over Compliance. Certain amounts reported on the ACF-696 did not agree to underlying documentation. Finding DSS did not have internal controls to ensure the amounts reported were adequately documented and supported. Correct...

Finding Number: 2024-046 - Reporting – Material Weakness in Internal Control over Compliance. Certain amounts reported on the ACF-696 did not agree to underlying documentation. Finding DSS did not have internal controls to ensure the amounts reported were adequately documented and supported. Corrective Action Takenor To Be Taken: The internal controls have been updated to ensure the amounts are documented and reported accurately. If to be taken, estimated date of completion: Corrective action in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Brooke Barlow, Administrative Services Officer III- Chief of Fiscal Services Phone Number: 775-684-0659 Email: bebarlow@dss.nv.gov

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Finding 1230114 (2024-045)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2024-045 – Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Finding: DSS did not have adequate internal controls to ensure the in-kind service match amounts were reconciled and reported accurately. Corrective Action Taken or To Be T...

Finding Number: 2024-045 – Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Finding: DSS did not have adequate internal controls to ensure the in-kind service match amounts were reconciled and reported accurately. Corrective Action Taken or To Be Taken: The internal controls have been updated to ensure the in-kind service match amounts are reconciled and reported accurately. If to be taken, estimated date of completion: Corrective action are already in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Brooke Barlow, Administrative Services Officer III- Chief of Fiscal Services Phone Number: 775-684-0659 Email: bebarlow@dss.nv.gov

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Finding 1230113 (2024-059)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking Cash Management Material Weakness

Audit Finding 2024-059 Finding: US Department of the Treasury (Treasury) regulations at 31 CFR Part 205 implement the Cash Management Improvement Act of 1990 (CMIA), as amended (Pub. L. No. 101-453; 31 USC 6501 et seq.). Subpart A of those regulations requires state recipients to enter into Treasury...

Audit Finding 2024-059 Finding: US Department of the Treasury (Treasury) regulations at 31 CFR Part 205 implement the Cash Management Improvement Act of 1990 (CMIA), as amended (Pub. L. No. 101-453; 31 USC 6501 et seq.). Subpart A of those regulations requires state recipients to enter into Treasury-State Agreements that prescribe specific methods of drawing down federal funds (funding techniques) for federal programs listed in the Assistance Listing (Catalog of Federal Domestic Assistance) that meet the funding threshold for a major federal assistance program under the CMIA. The major federal assistance program threshold for the State of Nevada’s 2024 Treasury-State Agreement was $60,000,000 in accordance with 31 CFR Part 205.5, which was determined based on the State’s Single Audit for the year ended June 30, 2021. Major federal assistance programs were not included in the State of Nevada’s Treasury- State Agreement as required. The State of Nevada Controller’s Office (SCO) did not have adequate internal controls to ensure major federal assistance programs were completely identified. Two assistance listing programs were not subject to the specific methods of drawing down federal funds that would have been negotiated within the Treasury-State Agreement. No sampling was used. We reviewed the expenditures by assistance listing on the State of Nevada’s Schedule of Expenditures of Federal Awards for the year ended June 30, 2021. We noted Special Education Grants to States, 84.027, and the Child Care and Development Block Grant, 93.575, both exceeded $60,000,000 and were not included. In addition, there was no documentation available to support whether these programs met any allowable exclusions or exemptions. Recommendation: We recommend SCO enhance internal controls to ensure major federal assistance programs are completely identified. Agency Response Does the Agency Agree with Finding: Yes Additional Comments: None Corrective Action Taken or to be Taken Action: The State Controller’s Office (SCO) will enhance internal controls to ensure major federal assistance programs are completely identified. Date of Completion or Estimated Completion: Estimated completion August 2026 Department or Agency Responsible for Corrective Action Plan Agency: Controller’s Office Contact: Micheala Woodburn, Senior Accountant (ACFR), Fiscal Operations 101 N. Carson Street, Suite 5 Carson City, NV 89701 775-684-5615 mwoodburn@sco.nv.gov

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Finding 1230109 (2024-035)

Material Weakness 2024

State of Nevada

NV

Reporting

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

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

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Finding 1230108 (2024-034)

Material Weakness 2024

State of Nevada

NV

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

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reporte...

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend 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. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2027. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

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Finding 1230107 (2024-033)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Finding #2024-033 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure main...

Finding #2024-033 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to ensure maintenance of effort is tracked, complied with, and supporting documents maintained. NDE Response In alignment with efforts under findings 2023-034 and 2024-030, regarding maintenance of effort, the Department has worked to develop policies and procedures, business rules, and consistent data and reporting practices across reports. 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 Maintenance of Effort. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2026. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

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Finding 1230106 (2024-032)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking

Finding #2024-032 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE enhance internal controls to ensure earmarking requirements are initi...

Finding #2024-032 - Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE enhance internal controls to ensure earmarking requirements are initially met and implement internal controls to ensure ongoing compliance is monitored. NDE Response NDE utilizes a Notice of Incoming Funding Form pursuant to Policy and Procedure 10.2 Funding Opportunities; this form and corresponding policy include information regarding the grant funding and support whether an earmarking spreadsheet would be necessary. Corrective Action NDE shall develop a comprehensive Policy and Procedure (10.12 Match, Maintenance of Effort, and Earmarking) documenting the earmarking process, to include monitoring. NDE shall implement internal control monitoring specific to earmarking. The Office of Division Compliance will collaborate with offices across the agency to develop this policy. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2027. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

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Finding 1230081 (2024-030)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking § 200.303

Finding #2024-030 - Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking - Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensur...

Finding #2024-030 - Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking - Significant Deficiency in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure maintenance of effort monitoring is reviewed by a party other than the preparer for accuracy and appropriate review of compliance. NDE Response NDE agrees with this finding. In alignment with efforts under finding 2023-034 regarding maintenance of effort, the Department has developed a comprehensive Policy and Procedure (1.9 Title I ESEA MOE) documenting the process for the development, review, and finalization of the MOE report, as well a Business Rule which clearly crosswalks source data to reporting outcomes and integrates pillars from NDE’s Records Management Program. Corrective Action A checklist detailing the chain of review has been developed and implemented to track the review and approval process of federal reports prior to submission. NDE shall update and implement MOE internal controls and monitoring to require a review by at least 2 individuals. The Office of Division Compliance will collaborate across the Department to ensure adoption and adherence to this update. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2026. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

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Finding 1230078 (2024-031)

Material Weakness 2024

State of Nevada

NV

Matching / Level of Effort / Earmarking § 200.303

Finding #2024-031 - U.S. Department of Education Special Education (IDEA) Cluster; Special Education Grants to States, 84.027; Special Education Preschool Grants, 84.173; Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compl...

Finding #2024-031 - U.S. Department of Education Special Education (IDEA) Cluster; Special Education Grants to States, 84.027; Special Education Preschool Grants, 84.173; Education Stabilization Fund, 84.425 Matching, Level of Effort, and Earmarking - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure the amounts used in monitoring the LEA maintenance of effort is accurate and that documentation sounding in the eligibility standard be maintained in accordance with 34 CFR section 300.230(a). NDE Response NDE agrees with this finding. In alignment with efforts under finding 2024-030, the Department has worked to develop policies and procedures, business rules, and consistent data and reporting practices across reports. Corrective Action NDE shall strengthen internal controls over the Special Education Maintenance of Effort (MOE) review process to guarantee accuracy. Specifically, NDE will update the MOE review process from the compliance standard to the eligibility standard; written procedures will be updated accordingly. Additionally, NDE will establish and implement a required secondary review step within the internal control framework. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2026. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

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Finding 1230073 (2024-029)

Material Weakness 2024

State of Nevada

NV

Subrecipient Monitoring

Finding Number: 2024-029 Summary of finding: Adequate internal controls were not in place to ensure compliance with the subrecipient monitoring requirements. For NDA risk assessments were not performed for any of the subrecipients selected for review. Recommendation: The NDA should enhance internal ...

Finding Number: 2024-029 Summary of finding: Adequate internal controls were not in place to ensure compliance with the subrecipient monitoring requirements. For NDA risk assessments were not performed for any of the subrecipients selected for review. Recommendation: The NDA should enhance internal controls to ensure compliance with subrecipient monitoring requirements. CAP Response: The agency agrees and accepts this finding and will take the following steps to enhance internal controls to ensure compliance: Currently all new subgrant awards and modifications to existing subgrant awards must have a risk assessment performed and turned into the grant’s teams at NDA prior to any signatures being obtained on subgrant award or modification documents. This process has already been put in place. Anticipated date of completion: July 31, 2026

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Finding 1230073 (2024-029)

Material Weakness 2024

State of Nevada

NV

Subrecipient Monitoring

Audit Finding 2024-029: 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 2024-029: 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 the subrecipient monitoring requirements. Agency Response: Does the agency agree with the Finding: Yes Corrective Action: To ensure full compliance going forward, we will take the following steps: 1. Verify All Risk Assessments GFO will conduct a full reconciliation of all subrecipient files to verify risk assessment documentation exists for every active award. GFO will re-perform and document all missing or incomplete risk assessments for affected subrecipient files. Date of Completion: Immediate Implementation to be completed by September 1, 2026. Agency Contact: Lesa Galloway, ASO IV Office (775) 684-0239 lgalloway@finance.nv.gov

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Finding 1230073 (2024-029)

Material Weakness 2024

State of Nevada

NV

Subrecipient Monitoring

Finding #2024-029: The finding of material weakness was regarding internal controls over compliance and material noncompliance related to 2 CFR Part 200.332. Within this multi-agency finding, only a portion of the finding applied to NDCNR and its subrecipient funding agreements, “[Eide Bailly] teste...

Finding #2024-029: The finding of material weakness was regarding internal controls over compliance and material noncompliance related to 2 CFR Part 200.332. Within this multi-agency finding, only a portion of the finding applied to NDCNR and its subrecipient funding agreements, “[Eide Bailly] tested four subrecipients applicable to the Department of Conservation and Natural Resources. All four subawards were missing required provisions.” Recommendation: Eide Bailly recommended NDCNR enhance internal controls to ensure compliance with subrecipient monitoring requirements. Agency Response: NDCNR agrees with this finding. Corrective Action NDCNR will develop a department-wide funding agreement template. In developing the template, the NDCNR will evaluate agreement examples from other state agencies (e.g., Nevada Department of Education and the Nevada Division of Public and Behavioral Health) to integrate missing provisions. Once completed, the template will be shared with agency grant managers for utilization throughout the department. Agency Contact Person Responsible for Corrective Action Plan: Brandon Bishop, Administrative Services Officer II Nevada Department of Conservation and Natural Resources Director's Office 901 S. Stewart St., Ste. 1003, Carson City, NV 89701 (775) 684-2707 Brandon.Bishop@dcnr.nv.gov Date of Completion or Estimated Completion: October 2026

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Finding 1230073 (2024-029)

Material Weakness 2024

State of Nevada

NV

Subrecipient Monitoring

Audit Finding: 2024-029 COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: The Nevada Housing Division ((“Division”) did not have adequate internal controls to ensure comp...

Audit Finding: 2024-029 COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: The Nevada Housing Division ((“Division”) did not have adequate internal controls to ensure compliance with subrecipient monitoring requirements. The following items were noted: a risk assessment was not performed, the subaward was missing required information and no monitoring procedures were performed as necessary to ensure the subaward was used for authorized purposes. Recommendation: Enhance internal controls to ensure compliance with subrecipient monitoring requirements. Agency Response: The Division agrees with the finding and acknowledges that it is a prior year finding. Corrective Action: The Division will actively review and revise subawards to update with the required provisions. The Division will also establish a regular fiscal risk assessment and a quarterly project risk assessment. The Assistance Listing Number (ALN) will also be provided to the subrecipients upon the time of payment. Finally, the Division will establish an internal audit and compliance committee to enhance oversight of existing policies for assessing risk (which include verifying suspension or debarment), monitoring and sharing best practices across its business. The internal audit and compliance committee will be responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Adoption of Corrective Action: January 2025 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

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Finding 1230073 (2024-029)

Material Weakness 2024

State of Nevada

NV

Subrecipient Monitoring

Program Name: Judicial Branch Assistance Listing Number: 21.027 Finding Number: 2024-029 Summary of the finding: Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements Action Taken: Subawards issued after the finding were updated to include the el...

Program Name: Judicial Branch Assistance Listing Number: 21.027 Finding Number: 2024-029 Summary of the finding: Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements Action Taken: Subawards issued after the finding were updated to include the elements noted as missing per 2 CFR 200.332. This was implemented once the finding was presented to the Judicial Branch by the AOC Grants and Contracts Officer Yesenia Pacheco. Casandra Vanzura Casandra Vanzura, Chief Accountant Administrative Office of the Courts, Judicial Branch

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Finding 1230073 (2024-029)

Material Weakness 2024

State of Nevada

NV

Subrecipient Monitoring

COVID-19 Coronavirus State and Local Fiscal Recovery Fund ALN: 21.027 Finding Number: 2024-029 Agency: Governor’s Office of Economic Development Summary of Finding: Eide Bailly tested one subrecipient under the Governor’s Office of Economic Development. A risk assessment was not performed, monitorin...

COVID-19 Coronavirus State and Local Fiscal Recovery Fund ALN: 21.027 Finding Number: 2024-029 Agency: Governor’s Office of Economic Development Summary of Finding: Eide Bailly tested one subrecipient under the Governor’s Office of Economic Development. A risk assessment was not performed, monitoring over the subrecipient did not take place, and it was not verified if the subrecipient was audited or if a management decision was necessary. Agency Response: The Governor’s Office of Economic Development agrees with this finding. Corrective Action Plan: 1. Development and implementation of Subrecipient Risk Assessment Process • GOED has updated and implemented the agency’s Grant Management Policy and Procedures, which includes Risk Assessment procedures as of January 29, 2026. • Risk assessments will be performed for all subrecipients before awarding or continuing funding. Responsible Person: Grant Management Staff; Director of Administration Anticipated Completion Date: January 29, 2026 2. Establishment of Subrecipient Monitoring Plan • GOED has updated and implanted the agency’s Grant Management Policy and Procedures, which includes Subrecipient Monitoring procedures as of January 29,2026. • Monitoring will be conducted based on the risk level established. • GOED will maintain electronic records for all monitoring activities. Responsible Person: Grant Management Staff Anticipated Completion Date: January 29, 2026 3. Verification of Subrecipient Audit Requirements • GOED has implemented a process requiring staff to verify whether subrecipients meet the threshold for a Single Audit under 2 CFR 200.501. This is included in the updated Grant Management Policy and Procedures dated January 29, 2026. • Staff will review the Federal Audit Clearinghouse (or obtain confirmation from the subrecipient) and document audit status. • When applicable, GOED will issue a written management decision in accordance with 2 CFR 200.521. Responsible Person: Grant Management Staff; Director of Administration Anticipated Completion Date: January 29, 2026 Contact Information for Corrective Action Plan Primary Contact: Angie Mathiesen, Director of Administration Governor’s Office of Economic Development 775-687-9910 angiem@goed.nv.gov

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Corrective Action Plans

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