FAC Explorer

Finding 1136596 (2024-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-05-13
Audit: 356146
Organization: County of Nevada (CA)
Auditor: Lsl LLP

AI Summary

  • Core Issue: The County failed to submit financial statements and single audit reports on time, missing the March 31, 2025 deadline.
  • Impacted Requirements: This delay violates the Uniform Guidance, affecting compliance monitoring by federal agencies and increasing risks of fraud and misuse of funds.
  • Recommended Follow-Up: Increase experienced finance staff and enhance training to improve year-end closing and financial reporting processes.

Finding Text

Reference Number 2024-002 – Delays in Financial Reporting Evaluation of Finding Material Weakness and Noncompliance Criteria Management is responsible for providing timely and accurate financial information. Because the County has expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition The County did not submit its financial statements and single audit reports to the FAC within the required timeframe for the fiscal year ended June 30, 2024. The financial statements and single audit reports were submitted after the deadline of March 31, 2025. Cause of Condition The County has experienced delays during their Annual Comprehensive Financial Report (ACFR) preparation. Updating financial records necessitates comprehensive data reconciliation and validation exercise. Ensuring that all financial data is accurate and up-to-date is critical, but this process is labor-intensive and prone to unexpected complications, further extending the preparation timeline to implement any required changes. Effect or Potential Effect of Condition The late submission of the financial statements and single audit reports impairs the ability of the federal awarding agencies and pass-through entities to monitor the County’s compliance with federal requirements and to make informed decisions regarding the continuation or modification of federal awards. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) Context The County’s financial statements and single audit reports are used by the federal awarding agencies and pass-through entities to assess the non-federal entity's financial condition, internal controls, and compliance with federal requirements. Questioned Costs No questioned costs noted. Repeat Finding This is not a repeat finding. Recommendation The County should look at increasing the amount of experienced finance staff to help facilitate year-end closing procedures and the preparation of its basic financial statements. Because the basic financial statements are the responsibility of the County, it is in its best interest to closely monitor the accounting process to ensure that financial position and operating results are accurately and timely reported. Views of Responsible Officials The County concurs with this finding and cause of condition. The Auditor-Controller's office is currently in the process of providing additional training to its staff to further develop their technical knowledge, and to assess internal processes over year-end closing processes and the preparation of financial statements in order to accurately update financial records and in a timely manner.

Categories

Allowable Costs / Cost Principles Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 560154 2024-002
    Material Weakness
  • 560155 2024-002
    Material Weakness
  • 560156 2024-002
    Material Weakness
  • 560157 2024-002
    Material Weakness
  • 560158 2024-002
    Material Weakness
  • 560159 2024-002
    Material Weakness
  • 560160 2024-002
    Material Weakness
  • 560161 2024-002
    Material Weakness
  • 560162 2024-002
    Material Weakness
  • 560163 2024-002
    Material Weakness
  • 560164 2024-002
    Material Weakness
  • 560165 2024-002
    Material Weakness
  • 560166 2024-002
    Material Weakness
  • 560167 2024-002
    Material Weakness
  • 560168 2024-002
    Material Weakness
  • 560169 2024-002
    Material Weakness
  • 560170 2024-002
    Material Weakness
  • 560171 2024-002
    Material Weakness
  • 560172 2024-002
    Material Weakness
  • 560173 2024-002
    Material Weakness
  • 560174 2024-002
    Material Weakness
  • 560175 2024-002
    Material Weakness
  • 560176 2024-002
    Material Weakness
  • 560177 2024-002
    Material Weakness
  • 560178 2024-002
    Material Weakness
  • 560179 2024-002
    Material Weakness
  • 560180 2024-002
    Material Weakness
  • 1136597 2024-002
    Material Weakness
  • 1136598 2024-002
    Material Weakness
  • 1136599 2024-002
    Material Weakness
  • 1136600 2024-002
    Material Weakness
  • 1136601 2024-002
    Material Weakness
  • 1136602 2024-002
    Material Weakness
  • 1136603 2024-002
    Material Weakness
  • 1136604 2024-002
    Material Weakness
  • 1136605 2024-002
    Material Weakness
  • 1136606 2024-002
    Material Weakness
  • 1136607 2024-002
    Material Weakness
  • 1136608 2024-002
    Material Weakness
  • 1136609 2024-002
    Material Weakness
  • 1136610 2024-002
    Material Weakness
  • 1136611 2024-002
    Material Weakness
  • 1136612 2024-002
    Material Weakness
  • 1136613 2024-002
    Material Weakness
  • 1136614 2024-002
    Material Weakness
  • 1136615 2024-002
    Material Weakness
  • 1136616 2024-002
    Material Weakness
  • 1136617 2024-002
    Material Weakness
  • 1136618 2024-002
    Material Weakness
  • 1136619 2024-002
    Material Weakness
  • 1136620 2024-002
    Material Weakness
  • 1136621 2024-002
    Material Weakness
  • 1136622 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $9.15M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $2.67M
14.239 Home Investment Partnerships Program $2.58M
93.563 Child Support Services $1.83M
16.710 Public Safety Partnership and Community Policing Grants $1.50M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.33M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.09M
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $805,737
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $786,819
93.558 Temporary Assistance for Needy Families $666,241
21.032 Local Assistance and Tribal Consistency Fund $644,000
93.667 Social Services Block Grant $530,011
20.509 Formula Grants for Rural Areas and Tribal Transit Program $476,000
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $423,958
93.268 Immunization Cooperative Agreements $388,460
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $371,084
93.958 Block Grants for Community Mental Health Services $264,334
66.956 Targeted Airshed Grant Program $259,612
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $199,847
16.575 Crime Victim Assistance $188,803
93.658 Foster Care Title IV-E $180,846
93.778 Medical Assistance Program $166,805
10.665 Schools and Roads - Grants to States $157,459
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $145,965
93.069 Public Health Emergency Preparedness $143,629
93.959 Block Grants for Prevention and Treatment of Substance Abuse $138,588
93.889 National Bioterrorism Hospital Preparedness Program $124,807
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $120,982
14.267 Continuum of Care Program $106,860
16.738 Edward Byrne Memorial Justice Assistance Grant Program $94,204
10.720 Infrastructure Investment and Jobs Act Community Wildfire Defense Grants $92,766
14.241 Housing Opportunities for Persons with Aids $77,554
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $76,700
16.588 Violence Against Women Formula Grants $72,929
93.197 Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $67,841
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $57,478
93.994 Maternal and Child Health Services Block Grant to the States $57,193
16.001 Law Enforcement Assistance Narcotics and Dangerous Drugs Laboratory Analysis $48,870
97.039 Hazard Mitigation Grant $47,100
93.217 Family Planning Services $45,879
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $35,464
10.433 Rural Housing Preservation Grants $29,682
93.645 Stephanie Tubbs Jones Child Welfare Services Program $26,762
93.590 Community-Based Child Abuse Prevention Grants $24,876
45.024 Promotion of the Arts Grants to Organizations and Individuals $19,700
93.150 Projects for Assistance in Transition From Homelessness (path) $17,012
93.747 Elder Abuse Prevention Interventions Program $16,196
93.917 Hiv Care Formula Grants $15,891
10.664 Cooperative Forestry Assistance $10,106
93.659 Adoption Assistance $9,771
93.090 Guardianship Assistance $6,575
10.723 Community Project Funds - Congressionally Directed Spending $6,216
93.603 Adoption and Legal Guardianship Incentive Payments Program $5,915
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $5,000
97.042 Emergency Management Performance Grants $4,692
93.556 Marylee Allen Promoting Safe and Stable Families Program $2,745
15.433 Flood Control Act Lands $2,493
20.205 Highway Planning and Construction $1,842
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $605
10.025 Plant and Animal Disease, Pest Control, and Animal Care $583
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $301
93.569 Community Services Block Grant $0