Finding 10829 (2023-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-30
Audit: 14489
Organization: Washoe County (NV)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Washoe County failed to maintain required documentation for capital projects exceeding $1 million, leading to inaccurate reporting of cumulative obligations and expenditures.
  • Impacted Requirements: Compliance with OMB guidelines for quarterly Project and Expenditure Reports, including necessary written justifications for capital expenditures.
  • Recommended Follow-Up: Enhance internal controls within the Office of the County Manager to ensure proper documentation is maintained for all reporting requirements.

Finding Text

2023-006: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), 21.027 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards under assistance listing 21.027 on the Schedule of Expenditures of Federal Awards Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Washoe County must submit quarterly Project and Expenditure Reports that contain CSLFRF costs incurred during the covered period to the Treasury Office of Inspector General. Critical information includes: • Current period obligation • Cumulative obligation • Current period expenditure • Cumulative expenditure • Revenue loss calculation validation • Capital expenditures – quantifiable objective criteria: The recipient has the required written justification in their grant file if the total of the capital expenditures costs in a project is greater than $1 million and less than $10 million; or, the recipient submitted the required justification to Treasury if (1) a project has total capital expenditures enumerated by Treasury in the Final rule; or (2) the total of a projects capital expenditures costs is greater than $1 million for capital expenditures not enumerated by Treasury in the final rule. Condition: Written justification was not maintained for capital projects with expenditures that exceeded $1 million and amounts reported for cumulative obligations did not agree to underlying support. Cause: The Office of the County Manager did not have adequate internal controls to ensure proper documentation was maintained for reporting requirements. Effect: Amounts reported to the Department of Treasury for capital expenditures may not have written justification. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 2 out of 4 quarterly reports were selected for testing. For both quarters selected, written justification for capital projects with expenditures exceeding $1 million was not maintained. Cumulative obligations for reported for the period ended September 30, 2022 were under reported by $1,510,426. Cumulative obligations reported for the period ended March 31, 2023 were underreported by $178,671 and cumulative expenditures reported for the period ended March 31, 2023 were underreported by $27,735. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure appropriate documentation to support reporting is maintained. Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 10820 2023-008
    Material Weakness
  • 10821 2023-009
    Material Weakness
  • 10822 2023-010
    Significant Deficiency
  • 10823 2023-004
    Significant Deficiency
  • 10824 2023-005
    Significant Deficiency
  • 10825 2023-006
    Material Weakness
  • 10826 2023-007
    Material Weakness
  • 10827 2023-004
    Significant Deficiency
  • 10828 2023-005
    Significant Deficiency
  • 10830 2023-007
    Material Weakness
  • 10831 2023-004
    Significant Deficiency
  • 10832 2023-005
    Significant Deficiency
  • 10833 2023-006
    Material Weakness
  • 10834 2023-007
    Material Weakness
  • 10835 2023-012
    Material Weakness
  • 10836 2023-011
    Significant Deficiency
  • 587262 2023-008
    Material Weakness
  • 587263 2023-009
    Material Weakness
  • 587264 2023-010
    Significant Deficiency
  • 587265 2023-004
    Significant Deficiency
  • 587266 2023-005
    Significant Deficiency
  • 587267 2023-006
    Material Weakness
  • 587268 2023-007
    Material Weakness
  • 587269 2023-004
    Significant Deficiency
  • 587270 2023-005
    Significant Deficiency
  • 587271 2023-006
    Material Weakness
  • 587272 2023-007
    Material Weakness
  • 587273 2023-004
    Significant Deficiency
  • 587274 2023-005
    Significant Deficiency
  • 587275 2023-006
    Material Weakness
  • 587276 2023-007
    Material Weakness
  • 587277 2023-012
    Material Weakness
  • 587278 2023-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.658 Foster Care_title IV-E $10.87M
93.659 Adoption Assistance $9.39M
66.458 Capitalization Grants for Clean Water State Revolving Funds $7.75M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $4.61M
93.563 Child Support Enforcement $3.06M
93.558 Temporary Assistance for Needy Families $1.59M
16.575 Crime Victim Assistance/discretionary Grants $1.36M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.21M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.21M
93.268 Immunization Cooperative Agreements $1.20M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $1.06M
21.023 Emergency Rental Assistance Program $1.04M
93.069 Public Health Emergency Preparedness $850,172
97.067 Homeland Security Grant Program $840,031
93.959 Block Grants for Prevention and Treatment of Substance Abuse $743,849
93.556 Promoting Safe and Stable Families $706,845
66.001 Air Pollution Control Program Support $706,738
16.922 Equitable Sharing Program $665,047
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $631,669
93.575 Child Care and Development Block Grant $614,359
93.770 Medicare_prescription Drug Coverage $523,799
16.034 Coronavirus Emergency Supplemental Funding Program $427,667
93.940 Hiv Prevention Activities_health Department Based $385,598
93.217 Family Planning_services $367,187
93.053 Nutrition Services Incentive Program $367,092
16.606 State Criminal Alien Assistance Program $359,438
93.889 National Bioterrorism Hospital Preparedness Program $354,402
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $317,077
16.741 Dna Backlog Reduction Program $314,945
97.042 Emergency Management Performance Grants $276,503
14.267 Continuum of Care Program $259,813
20.616 National Priority Safety Programs $246,261
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $244,062
16.588 Violence Against Women Formula Grants $217,864
45.310 Grants to States $213,141
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $211,390
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $189,987
93.103 Food and Drug Administration_research $162,347
93.136 Injury Prevention and Control Research and State and Community Based Programs $159,645
16.582 Crime Victim Assistance/discretionary Grants $141,451
10.690 Lake Tahoe Erosion Control Grant Program $137,890
93.958 Block Grants for Community Mental Health Services $134,626
93.669 Child Abuse and Neglect State Grants $132,944
66.432 State Public Water System Supervision $125,000
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $121,915
93.387 National and State Tobacco Control Program (b) $119,722
66.804 Underground Storage Tank (ust) Prevention, Detection, and Compliance Program $100,000
95.001 High Intensity Drug Trafficking Areas Program $94,747
16.758 Improving the Investigation and Prosecution of Child Abuse and the Regional and Local Children's Advocacy Centers $93,885
16.543 Missing Children's Assistance $86,824
93.008 Medical Reserve Corps Small Grant Program $75,000
20.600 State and Community Highway Safety $72,204
93.603 Adoption Incentive Payments $70,668
21.027 Coronavirus State and Local Fiscal Recovery Funds $62,894
93.645 Stephanie Tubbs Jones Child Welfare Services Program $62,004
14.218 Community Development Block Grants/entitlement Grants $60,686
93.270 Adult Viral Hepatitis Prevention and Control $55,984
93.991 Preventive Health and Health Services Block Grant $54,931
10.555 National School Lunch Program $53,542
10.664 Cooperative Forestry Assistance $52,201
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $48,959
93.667 Social Services Block Grant $44,742
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $41,387
93.643 Children's Justice Grants to States $40,041
16.738 Edward Byrne Memorial Justice Assistance Grant Program $38,153
93.052 National Family Caregiver Support, Title Iii, Part E $34,055
93.110 Maternal and Child Health Federal Consolidated Programs $33,596
93.597 Grants to States for Access and Visitation Programs $33,115
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $33,082
10.553 School Breakfast Program $27,592
16.609 Project Safe Neighborhoods $24,097
45.024 Promotion of the Arts_grants to Organizations and Individuals $22,411
15.611 Wildlife Restoration and Basic Hunter Education $18,164
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $15,766
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $14,847
66.608 Environmental Information Exchange Network Grant Program and Related Assistance $14,484
93.994 Maternal and Child Health Services Block Grant to the States $14,473
93.586 State Court Improvement Program $13,600
10.704 Law Enforcement Agreements $13,482
93.788 Opioid Str $12,001
93.919 Cooperative Agreements for State-Based Comprehensive Breast and Cervical Cancer Early Detection Programs $11,926
15.916 Outdoor Recreation_acquisition, Development and Planning $11,126
97.039 Hazard Mitigation Grant $10,568
10.579 Child Nutrition Discretionary Grants Limited Availability $9,993
20.219 Recreational Trails Program $9,042
16.U01 Organized Crime Drug Enforcement Task Force $2,164
16.838 Comprehensive Opioid Abuse Site-Based Program $1,522
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $1,170
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $666