Finding Text
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
U.S. Department of Treasury/Passed Through State of Nevada Department of Education and
Nevada State Public Charter School Authority (SPCSA)
ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds – AB495 (COVID-19)
Award Date – 7/1/2022–12/31/2024
Criteria – Management is responsible for implementing internal controls related to Activities
Allowed or Unallowed and Allowable Costs and Cost Principles, as required by the Uniform
Guidance.
Condition – Evidence of review and approval prior to the payment could not be provided for
two of the nonpayroll expenditures tested.
Questioned Costs – None
Context/Sampling – A non-statistical sample of four nonpayroll expenditures out of 23
nonpayroll expenditures was selected for testing.
Cause – The School lacked sufficient internal controls to ensure that the review and approval
of costs were documented prior to payment of the expenditure.
Effect or Potential Effect – There is a risk that unallowable costs may be charged to the
program without being detected by the School.
Recommendation – We recommend that the School document review and approval of all
expenditures prior to expenditure to ensure compliance with the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions – These findings were for
purchases prior to the School’s new principal coming on board. Upon hiring in April 2024, the
new principal was fully trained in the School’s internal control policies.