Finding Text
2024-010: U.S. Department of Interior
Direct award and Pass-through Tahoe Resource Conservation District
Southern Nevada Public Land Management, 15.235
Reporting
Material Weakness in Internal Control over Compliance and Material Noncompliance
Grant Award Number: Affects all grant awards included under assistance listing 15.235 on the Schedule of Expenditures of Federal Awards.
Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effect internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
The grant awards require the submission of Federal Financial Reports (SF-425) and Performance Reports.
Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer.
Information reported did not agree to underlying supporting records.
Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of SF-425 reports or Performance Reports.
Effect: Inaccurate information was reported to the federal agency on the SF-425 and inaccurate information was reported to the pass-through entity on the Performance Reports.
Questioned Costs: None
Context/Sampling: A non-statistical sample of two SF-425 reports out of a population of four was selected for testing. A non-statistical sample of two Performance Reports out of a population of four was selected for testing. We noted that there was no evidence of review on all four reports tested.
Amounts reported on all four reports tested did not agree to underlying support. Errors are noted as follows:
SF-425 for Quarter Ended 9/30/2023:
SF-425 for Quarter Ended 3/31/2024:
Performance Report to TRCD for Quarter End 9/30/2023:
Performance Report to TRCD for Quarter End 12/31/2023:
Repeat Finding from Prior Year: No
Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of SF-425 reports and Performance Reports.
Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.