Corrective Action Plans

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

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

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

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

View Audit 366218

Finding 576391 (2023-031)

Material Weakness 2023

State of Nevada

NV

Reporting Material Weakness

Audit Finding 2023-031: U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: Inaccurate information was reported to the federal awarding agency. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure...

Audit Finding 2023-031: U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: Inaccurate information was reported to the federal awarding agency. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure Project Expenditure Reports are reconciled to underlying supporting documentation. Agency Response: Does the agency Agree with the Finding: Yes Corrective Action: The Governor’s Finance Office implemented an additional review process to ensure federal reports are accurate by reconciling amounts amongst all data sources used to compile the project expenditure reports to the federal quarterly reports. Date of Completion: Implemented effective reporting period ended June 30, 2023. Agency Contact: Lesa Galloway, ASOIV Office (775) 684-0239 lgalloway@finance.nv.gov

View Audit 366218

Finding 576390 (2023-030)

Significant Deficiency 2023

State of Nevada

NV

Procurement, Suspension & Debarment Subrecipient Monitoring

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

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

View Audit 366218

Finding 576389 (2023-029)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

Audit Finding: 2023-029 Homeowner Assistance Fund: 21.026 Subrecipient Monitoring Material Weakness in Internal Control over Compliance Summary: Subawards and disbursements did not contain all the required information, an evaluation of each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring was not performed. Recommendation: Implement internal controls to ensure compliance with subrecipient monitoring requirements. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division also acknowledges this is a prior year finding. The timing of the FY22 and FY23 state audits did not allow for any corrective actions to be reflected. Corrective Action: The Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

View Audit 366218

Finding 576388 (2023-028)

Material Weakness 2023

State of Nevada

NV

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Special Tests & Provisions § 200.303

Audit Finding: 2023-028 Emergency Rental Assistance Program: 21.023 Special Tests and Provisions – ERA Funds Reallocation Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Supporting documentation for the application to receive reallocated funds was not mainta...

Audit Finding: 2023-028 Emergency Rental Assistance Program: 21.023 Special Tests and Provisions – ERA Funds Reallocation Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Supporting documentation for the application to receive reallocated funds was not maintained and there was not adequate segregation of duties in the preparation and review of the application. Recommendation: Enhance internal controls to ensure supporting documentation is maintained. Agency Response: The Nevada Housing Division (“Division”) does not agree with the finding. While the Division acknowledges the requirements outlined for audit in the Special Test, these do not align with the actual reallocation application which simply stated that the applicant must confirm a demonstrated need and submit monthly projections. The Division did provide these projections with its reallocation application along with households in the queue for emergency rental assistance and past monthly expenditures and households served in order to inform the projections. Corrective Action: In FY25, the Housing Division moved ERAP to the Grants Team for management, including the documentation of amounts being reported to the awarding agency. Additionally, the Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

View Audit 366218

Finding 576387 (2023-027)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

Audit Finding: 2023-027 Emergency Rental Assistance Program: 21.023 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Subawards did not contain all the required information, assistance listing numbers were not communicated at the time of disbursement, and there was not adequate subrecipient monitoring. Recommendation: Enhance internal controls to ensure compliance with subrecipient monitoring. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division also acknowledges this is a prior year finding. The timing of the FY22 and FY23 state audits did not allow for any corrective actions to be reflected. Additionally, the Division would like to note, and be given consideration for, the substantive fact of the context of the time period in a pandemic, a once in a lifetime crisis that was impacting daily work and personal lives of all Nevadans, including Division staff. Corrective Action: In FY25, the Division moved ERAP to the Grants Team for management of the subrecipients and reporting. Additionally, the Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

View Audit 366218

Finding 576386 (2023-026)

Material Weakness 2023

State of Nevada

NV

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

Audit Finding: 2023-026 Emergency Rental Assistance Program: 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Key information was not reported, supporting documentation for amounts that were reported was not maintained, and there was not prop...

Audit Finding: 2023-026 Emergency Rental Assistance Program: 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Key information was not reported, supporting documentation for amounts that were reported was not maintained, and there was not proper segregation of duties relative to reporting. Recommendation: Implement internal controls to ensure reports are reviewed for accuracy prior to submission. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division also acknowledges this is a prior year finding. The timing of the FY22 and FY23 state audits did not allow for any corrective actions to be reflected. Additionally, the Division would like to note, and be given consideration for, the substantive fact of the context of the time period in a pandemic, a once in a lifetime crisis that was impacting daily work and personal lives of all Nevadans, including Division staff. Finally, and importantly, the U.S. Treasury portal was a challenge to work with and guidance was often confusing and contradictory. Corrective Action: In FY25, the Division moved ERAP to the Grants Team for management of the subrecipients and reporting. Additionally, the Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

View Audit 366218

Finding 576384 (2023-025)

Significant Deficiency 2023

State of Nevada

NV

Subrecipient Monitoring Special Tests & Provisions HUD Housing Programs

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

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

View Audit 366218

Finding 576382 (2023-024)

Significant Deficiency 2023

State of Nevada

NV

Special Tests & Provisions Reporting Significant Deficiency

Finding 2023-024 The minimum standards of BAM case completion were not met. The following is a summary of BAM case completion percentages that were not met: • 90- Day Completion Requirements Paid claims require 95% completion, actual was 85.19%. Denied separation claims require 85% completion, actua...

Finding 2023-024 The minimum standards of BAM case completion were not met. The following is a summary of BAM case completion percentages that were not met: • 90- Day Completion Requirements Paid claims require 95% completion, actual was 85.19%. Denied separation claims require 85% completion, actual was 84.21 %. • 120-Day Completion Requirements Paid claims require 98% completion, actual was 93.46%. Denied separation claims require 98%, actual was 92.76%. Denied non-separation claims require 98%, actual was 93.63%. Recommendation We recommend DETR enhance the internal controls to ensure BAM timeliness requirements are met. Nevada DETR's Response The Employment Security Division's Unemployment Insurance Support Services (UISS) recognizes the importance of BAM timeliness to ensure accuracy of UI benefit payments and compliance with Federal standards. Background: Timeliness issues during the review period were primarily due to workload fluctuations and staffing challenges that affected case completion rates. DETR narrowly missed the timeliness thresholds; however, no systemic issues or deficiencies in investigative procedures were identified. As noted in the U.S. Department of Labor's Annual BAM Administrative Determination Letter for Calendar Year 2023 (April 29, 2024), Nevada's BAM program was found to be in overall compliance, and no response /corrective action was required at the federal level (Attachment A). No new corrective actions were required beyond the continuation of normal BAM operations. Staff performance and workload management returned to standard levels, and DETR achieved full compliance with BAM timeliness requirements in the subsequent review period (202327-202426). DETR will continue to monitor BAM case processing to ensure that timeliness standards are consistently met. Estimated Date of Competion: COMPLETED Contact Person: Patricial Allander, ESD Deputy Administrator, DETR, ESD (775)684-3906, p-allander@detr.nv.gov

View Audit 366218

Finding 576381 (2023-023)

Significant Deficiency 2023

State of Nevada

NV

Reporting Significant Deficiency

Finding 2023-023 Amounts reported on the ETA 9130 report did not agree to underlying financial records. A nonstatistical sample of 11 out of a population of 70 ETA 9130 reports was selected for testing. An error was noted in one of the reports tested as follows: Quarter Ended March 31, 20223 (UI3933...

Finding 2023-023 Amounts reported on the ETA 9130 report did not agree to underlying financial records. A nonstatistical sample of 11 out of a population of 70 ETA 9130 reports was selected for testing. An error was noted in one of the reports tested as follows: Quarter Ended March 31, 20223 (UI39335OB0) Amount Reported Amount Per General Ledger Federal Share of Expenditures $11,551,039 $10,567,580 Recommendation: We recommend the DETR enhance the internal controls to ensure amounts reported agreed to underlying records. Nevada DETR's Response: This was an error due to a prior staff member not interpreting data correctly from the pivot table. DETR has since changed the formatting of pivot tables to be uniform and labeled for more clarity. Attached are the updated procedure and draft internal control for all 9130 reports. Estimated Date of Completion: COMPLETED Contact Person: Zach Hoefling, Chief Financial Officer, DETR/ESD (775)684-3952 z-hoefling@detr.nv.gov

View Audit 366218

Finding 576376 (2023-022)

Material Weakness 2023

State of Nevada

NV

Reporting School Nutrition Programs

Finding Number: 2023-022 Summary of finding: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). The Nevada Department of Agriculture (NDA) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Recommendati...

Finding Number: 2023-022 Summary of finding: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). The Nevada Department of Agriculture (NDA) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Recommendation: The State agency should implement internal controls to ensure subaward information is submitted in accordance with the FFATA. CAP Response: The agency agrees and accepts this finding and will take the following steps to enhance internal controls to ensure compliance: The agency will identify appropriate staff with system access to SAM.gov to report FFATA subaward information and request access for additional staff if needed. Staff will begin reporting FFATA information on October 1, 2025. Anticipated date of completion: March 31, 2026 CAP Contacts: Cathy Balcon, Administrator, Division of Administration, Patricia Hoppe, Administrator, Division of Food and Nutrition

View Audit 366218

Finding 576374 (2023-002)

None 2023

Back of the Yards Neighborhood Council

IL

Reporting Cash Management § 200.328

Responsible official: Edwin Garcia, Finance Director. Condition/Cause: Incomplete/late submission of required program reports for ALN 21.027 (SYEP). Corrective actions: (1) Created a Uniform Guidance compliance calendar for all reporting deadlines; (2) Implemented a pre‑submission peer review checkl...

Responsible official: Edwin Garcia, Finance Director. Condition/Cause: Incomplete/late submission of required program reports for ALN 21.027 (SYEP). Corrective actions: (1) Created a Uniform Guidance compliance calendar for all reporting deadlines; (2) Implemented a pre‑submission peer review checklist (accuracy, completeness, tie‑out to ledger/SEFA); (3) Standardized reporting templates mapped to the GL; (4) Automated reminders 10 and 3 days before due dates; (5) Training provided to staff on 2 CFR 200 reporting requirements and City of Chicago contract terms. Timeline: Implemented May–June 2025; sustained monitoring through December 31, 2025. Monitoring: Monthly compliance meetings with program and finance; late submissions escalated to Executive Director.

View Audit 366215

Finding 576335 (2023-004)

Significant Deficiency 2023

Tupqich Elder Apartments, Inc. 176‐ee038

AK

See Corrective Action Plan for chart/table

View Audit 366200

Finding 576334 (2023-003)

Significant Deficiency 2023

Tupqich Elder Apartments, Inc. 176‐ee038

AK

See Corrective Action Plan for chart/table

View Audit 366200

Finding 576333 (2023-002)

Significant Deficiency 2023

Tupqich Elder Apartments, Inc. 176‐ee038

AK

See Corrective Action Plan for chart/table

View Audit 366200

Finding 576310 (2023-004)

Significant Deficiency 2023

Isaac Elementary School District No. 5

AZ

Procurement, Suspension & Debarment

Finding Number: 2023‐004 Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The District is in the proce...

Finding Number: 2023‐004 Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The District is in the process of establishing written Standard Operating Procedures and training over procurement. Specifically, a process to ensure that suspension and debarment regulations are followed will be created.

View Audit 366183

Finding 576308 (2023-003)

Material Weakness 2023

Isaac Elementary School District No. 5

AZ

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

Finding Number: 2023‐003 Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: Since April 2025, Federal & ...

Finding Number: 2023‐003 Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: Since April 2025, Federal & State grant expenditures are verified to conform to the grant applications. Budget revisions are requested and approved before expenditures are made. After reconciling expenditures to the grant detail, timely reimbursement requests are made. Journal entries are expected to contain adequate detail and justification and Grant personnel now report to the Business Manager and Chief Financial Officer where they receive ongoing support, training and supervision. The District intends to be in compliance with 2 CFR Part 200.303 during the 2026 fiscal year.

View Audit 366183

Finding 576307 (2023-002)

Material Weakness 2023

Isaac Elementary School District No. 5

AZ

Allowable Costs / Cost Principles Material Weakness Reporting

Finding Number: 2023‐002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The District will monitor and track federal grant...

Finding Number: 2023‐002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The District will monitor and track federal grants expenditures and revenues in a fiscally responsible manner to reduce the number of inaccurate information.

View Audit 366183

Finding 576301 (2023-001)

Material Weakness 2023

Isaac Elementary School District No. 5

AZ

Questioned Costs Reporting Allowable Costs / Cost Principles § 200.303

Finding Number: 2023‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Title I Grants to Local Educational Agencies 84.010 Supporting Effective Instruction State Grants 84.367 Student Support and Academic Enrichment Program 84.424 Education Stabilization Fund 84.425C Education...

Finding Number: 2023‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Title I Grants to Local Educational Agencies 84.010 Supporting Effective Instruction State Grants 84.367 Student Support and Academic Enrichment Program 84.424 Education Stabilization Fund 84.425C Education Stabilization Fund 84.425D Education Stabilization Fund 84.425U Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The District will provide trainings on a regular basis for personnel responsible for grants management. The District will adhere to internal controls to ensure expenditures align to grant budgets.

View Audit 366183 Questioned Costs: $1

Finding 576299 (2023-013)

Material Weakness 2023

Dakota County

MN

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

U.S. Department of Health and Human Services Medical Assistance Program Assistance Listing Number: 93.778 Passed Through Minnesota Department of Human Services Pass Through Number: H55215048 Award Period: 2023 Recommendation: We recommend that the County review its policies and controls to ensur...

U.S. Department of Health and Human Services Medical Assistance Program Assistance Listing Number: 93.778 Passed Through Minnesota Department of Human Services Pass Through Number: H55215048 Award Period: 2023 Recommendation: We recommend that the County review its policies and controls to ensure there is a formally documented control to ensure all reports are reviewed and the documentation of the review is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will maintain a copy of the quarterly and annual cost reports that includes a written sign-off showing that the reports have been reviewed prior to the quarterly/annual deadline. Name of the contact person responsible for corrective action: Michelle Jensen, Social Services Program Operations Manager Planned completion date for corrective action plan: December 31, 2024

View Audit 366181

Finding 576297 (2023-011)

Material Weakness 2023

Dakota County

MN

Eligibility Material Weakness Reporting § 200.303

U.S. Department of Health and Human Services Medical Assistance Program Assistance Listing Number: 93.778 Passed Through Minnesota Department of Human Services Pass Through Number: H55215048 Award Period: 2023 Recommendation: We recommend the County implement process and procedures to provide re...

U.S. Department of Health and Human Services Medical Assistance Program Assistance Listing Number: 93.778 Passed Through Minnesota Department of Human Services Pass Through Number: H55215048 Award Period: 2023 Recommendation: We recommend the County implement process and procedures to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input or updated in MAXIS and issues are followed up in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will continue to train staff to ensure they are aware that review of casefiles needs to be documented by a signature for all applications, all information in casefiles needs to be accurately input into MAXIS for income and assets, and all applications should be processed in a timely and accurate manner. Name of the contact person responsible for corrective action: Tiffinie Miller, Deputy Director of Employment & Economic Assistance Planned completion date for corrective action plan: December 31, 2024

View Audit 366181

Finding 576296 (2023-009)

Material Weakness 2023

Dakota County

MN

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

U.S. Department of Health and Human Services Medical Assistance Program Assistance Listing Number: 93.778 Passed Through Minnesota Department of Human Services Pass Through Number: H55215048 Award Period: 2023 Recommendation: We recommend that the County review its procedures and control to ensu...

U.S. Department of Health and Human Services Medical Assistance Program Assistance Listing Number: 93.778 Passed Through Minnesota Department of Human Services Pass Through Number: H55215048 Award Period: 2023 Recommendation: We recommend that the County review its procedures and control to ensure all RMS listings sent to the State properly exclude those necessary individuals no longer working in the programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will ensure that the reports are reviewed prior to submission going forward. Name of the contact person responsible for corrective action: Nataliya Schull, Social Services Program Analyst Planned completion date for corrective action plan: December 31, 2024

View Audit 366181

Finding 576290 (2023-006)

Material Weakness 2023

Dakota County

MN

Eligibility Material Weakness Matching / Level of Effort / Earmarking § 200.303

U.S. Department of Health and Human Services Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Passed Through Minnesota Department of Human Services Pass Through Number: H55214077 Award Period: 2023 Recommendation: We recommend the County implement process and procedures ...

U.S. Department of Health and Human Services Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Passed Through Minnesota Department of Human Services Pass Through Number: H55214077 Award Period: 2023 Recommendation: We recommend the County implement process and procedures to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input or updated in MAXIS and issues are followed up in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will continue to train staff to ensure they are aware that review of casefiles needs to be documented by a signature for all applications, all information in casefiles needs to be accurately input into MAXIS for income and assets, and all applications should be processed in a timely and accurate manner. Name of the contact person responsible for corrective action: Tiffinie Miller, Deputy Director of Employment & Economic Assistance Planned completion date for corrective action plan: December 31, 2024

View Audit 366181

Finding 576289 (2023-008)

Material Weakness 2023

Dakota County

MN

Subrecipient Monitoring Eligibility Material Weakness § 200.303 § 200.331

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

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

View Audit 366181

Corrective Action Plans

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