Corrective Action Plans

Finding 576417 (2023-054)

Material Weakness 2023

State of Nevada

NV

Questioned Costs Reporting Eligibility

Finding 2023-054 Program Information Program Name: 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) CFDA Num...

Finding 2023-054 Program Information Program Name: 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) CFDA Number: 93.767/93.775/93.777/93.778 Summary of Finding Eligibility Material Weakness in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Plan DSS has reinforced internal controls to ensure applications are correctly indexed, date-stamped, and fully accessible in DIS with documented supervisory review. The Division has also implemented automation of the PARIS file to ensure quarterly residency verification is completed, with non-responding or out-of-state participants terminated. These controls are now in place and will be applied consistently going forward. Contact Person(s) Responsible Karen Stoycoff, Social Services Program Specialist Phone: 775-684-7436 Email: kstoycoff@dss.nv.gov Anticipated Completion Date September 30th, 2025.

View Audit 366218 Questioned Costs: $1

Finding 576417 (2023-054)

Material Weakness 2023

State of Nevada

NV

Questioned Costs Reporting Eligibility

Finding Number 2023-054 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 2023-054 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: PARIS data was not utilized by the Division of Health Care Financing and Policy (DHCFP) or the Division of Welfare and Suppor􀆟ve Services (DWSS) to monitor residency changes to determine when managed care benefits needed to be terminated because the beneficiary was a resident of another state for Medicaid purposes. DHCFP and DWSS did not have internal controls in place to effectively communicate the PARIS data between the two agencies to ensure managed care benefits were terminated when appropriate. Projected questioned costs are $11,108,851 for Medicaid and $139,223 for CHIP. We recommend DHCFP and DWSS implement internal controls to effectively communicate the PARIS data between each other and to ensure managed care benefits are terminated when appropriate. NVHA Response: The Nevada Health Authority agrees with this finding. Corrected Action Planned: The Division of Social Services (DSS) is in the process of automating the PARIS process. 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-ofstate address, will be terminated in accordance with policy, while those confirming Nevada residency will retain eligibility Anticipated Completion Date of Corrective Action Plan : September 2025

View Audit 366218 Questioned Costs: $1

Finding 576414 (2023-047)

Significant Deficiency 2023

State of Nevada

NV

Matching / Level of Effort / Earmarking § 200.303

Finding 2023-047 Program Information Program Name: CCDF Cluster: Child Care and Development Block Grant, COVID-19 Child Care and Development Block Grant, Child Care Mandatory and Matching Funds of the Child Care and Development Fund CFDA Number: 93.575/93.596 Summary of Finding Matching, Level of Ef...

Finding 2023-047 Program Information Program Name: CCDF Cluster: Child Care and Development Block Grant, COVID-19 Child Care and Development Block Grant, Child Care Mandatory and Matching Funds of the Child Care and Development Fund CFDA Number: 93.575/93.596 Summary of Finding Matching, Level of Effort, and Earmarking Significant Deficiency in Internal Control over Compliance Agency Response Agency agrees with the finding. Corrective Action Plan DSS has implemented procedures requiring program staff and fiscal staff to reconcile in-kind contributions against the required match on a quarterly basis. Certified match letters and supporting documentation from partners are reviewed against the cumulative tracker to ensure amounts are properly recorded and reported. Discrepancies are resolved prior to reporting, and supervisory review provides additional oversight. These procedures ensure the State’s matching requirements are consistently met and accurately reported on the ACF-696. Contact Person(s) Responsible Brook Barlow, Chief Fiscal Services Phone: 775-684-0659 Email: bebarlow@dss.nv.gov Anticipated Completion Date November 15, 2025.

View Audit 366218

Finding 576411 (2023-049)

Material Weakness 2023

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking

Finding 2023-049 Program Information Program Name: CCDF Cluster: Child Care and Development Block Grant, COVID-19 Child Care and Development Block Grant, Child Care Mandatory and Matching Funds of the Child Care and Development Fund CFDA Number: 93.575/93.596 Summary of Finding Reporting Material We...

Finding 2023-049 Program Information Program Name: CCDF Cluster: Child Care and Development Block Grant, COVID-19 Child Care and Development Block Grant, Child Care Mandatory and Matching Funds of the Child Care and Development Fund CFDA Number: 93.575/93.596 Summary of Finding Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Agency Response Agency agrees with this finding. Corrective Action Plan 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 last month, and ongoing reporting is now embedded in standard operating procedures to maintain compliance. Contact Person(s) Responsible Catherine Council, Management Analyst II Phone: 775-684-0679 Email: cacouncil@dss.nv.gov Anticipated Completion Date September 30th, 2025.

View Audit 366218

Finding 576410 (2023-048)

Material Weakness 2023

State of Nevada

NV

Reporting Matching / Level of Effort / Earmarking Material Weakness

Finding 2023-048 Program Information Program Name: CCDF Cluster: Child Care and Development Block Grant, COVID-19 Child Care and Development Block Grant, Child Care Mandatory and Matching Funds of the Child Care and Development Fund CFDA Number: 93.575/93.596 Summary of Finding Reporting Material We...

Finding 2023-048 Program Information Program Name: CCDF Cluster: Child Care and Development Block Grant, COVID-19 Child Care and Development Block Grant, Child Care Mandatory and Matching Funds of the Child Care and Development Fund CFDA Number: 93.575/93.596 Summary of Finding Reporting Material Weakness in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Plan Procedures were implemented July 1, 2023, to validate that the fiscal amounts reported on the ACF-696 have supporting documentation in the applicable state fiscal year and additional guidance had been provided to staff on the tighter internal controls. Contact Person(s) Responsible Brook Barlow, Chief Fiscal Services Phone: 775-684-0659 Email: bebarlow@dss.nv.gov Anticipated Completion Date These procedures were implemented July 1, 2023.

View Audit 366218

Finding 576397 (2023-037)

Material Weakness 2023

State of Nevada

NV

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding #2023-037 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required informati...

Finding #2023-037 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management, as well as the Office of District Support to develop these standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2026. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576396 (2023-036)

Material Weakness 2023

State of Nevada

NV

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

Finding #2023-036 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls s...

Finding #2023-036 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls so that maintenance of effort is tracked, complied with, and supporting documentation is maintained. NDE Response NDE maintains that the Governor’s Finance Office was responsible for the maintenance of effort for higher education. In alignment with efforts under findings 2022-037 and 2023-034 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 compliance with the data and reporting standards. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management, as well as the Office of District Support to develop these standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2026. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576395 (2023-035)

Material Weakness 2023

State of Nevada

NV

Matching / Level of Effort / Earmarking

Finding #2023-035 – Education Stabilization Fund, CFDA 84.425 Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure earmarking requirements are initially met and im...

Finding #2023-035 – Education Stabilization Fund, CFDA 84.425 Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure earmarking requirements are initially met and implement internal controls to ensure ongoing compliance is monitored. NDE Response At the time of this Corrective Action Plan, NDE is able to demonstrate appropriate earmarking for summer enrichment and after-school programs. Related to earmark monitoring, upon receipt of a grant award, NDE utilizes a Notice of Incoming Funding Form pursuant to Policy and Procedure 10.2 Funding Opportunities; this form and corresponding policy include information regarding the grant funding and support whether an earmarking spreadsheet would be necessary. Corrective Action NDE shall develop a comprehensive Policy and Procedure (10.12 Match, Maintenance of Effort, and Earmarking) documenting the earmarking process, to include monitoring. 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, 2026. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576394 (2023-034)

Material Weakness 2023

State of Nevada

NV

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.303

Finding #2023-034 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure the...

Finding #2023-034 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure the information used is maintained and reviewed for accuracy and compliance. NDE Response The Department agrees with this finding. While 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, understaffing at the Department has made it difficult to ensure deadlines are met, all levels of review have been completed, and audit trails have been sufficiently documented. Corrective Action A checklist detailing the chain of review has been developed and will be implemented to track the review and approval process of federal reports prior to submission. NDE shall implement internal control monitoring specific to the use of this checklist and adherence to internal controls regarding levels of review. The Office of Division Compliance will collaborate across the Department to ensure adoption and adherence to the use of this form. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2025. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

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Finding 576393 (2023-033)

Material Weakness 2023

State of Nevada

NV

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.303

Finding #2023-033 – Title I Grants to Local Education Agencies, CFDA 84.010 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 inte...

Finding #2023-033 – Title I Grants to Local Education Agencies, CFDA 84.010 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 supporting documentation of the adjustments in allocations to LEAs is maintained. NDE Response NDE agrees with this finding. In alignment with efforts under findings 2022-037 and 2023-034 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 compliance with the data and reporting standards. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management, as well as the Office of District Support to develop these standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2026. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

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

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

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

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

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

View Audit 366218

Finding 576392 (2023-032)

Material Weakness 2023

State of Nevada

NV

Subrecipient Monitoring

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

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

View Audit 366218

Finding 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

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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

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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

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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

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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

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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.

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