Finding 1152938 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-15

AI Summary

  • Core Issue: Lack of effective internal controls led to no review and approval process for quarterly financial reports.
  • Impacted Requirements: This violates federal regulations requiring proper segregation of duties and accurate reporting.
  • Recommended Follow-Up: Enhance internal controls to ensure all quarterly financial reports are properly reviewed and approved.

Finding Text

U.S. Department of the Treasury Passed Through the Nevada Housing Division, City of Reno COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP0309, SLFRP2634. 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 effective 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. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports and inaccurate information was reported to the federal awarding agency. Cause: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Effect: Inaccurate information could be reported to the federal awarding agency. Questioned Costs: None noted. Context/sampling: Two quarterly financial reports out of a population of four was selected for testing. Report Finding from Prior Year: Yes, 2023-004 Recommendation: We recommend the Foundation enhance the internal controls to ensure quarterly financial reports are reviewed and approved and accurate information is included in the reports. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.

Corrective Action Plan

Finding 2024-002 Federal Agency Name: Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Corrective Action Plan: Previous reports were compiled by the Foundation’s vendors and submitted by the prior CFO. Future reports will be prepared by the Accountant and reviewed by the CFO prior to submission. Responsible Individuals: Alisha Kinnison, Accountant and Matt Lazar, CFO Anticipated Completion Date: July 2025

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1152935 2024-001
    Material Weakness Repeat
  • 1152936 2024-002
    Material Weakness Repeat
  • 1152937 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.72M
14.218 Community Development Block Grants/entitlement Grants $86,800