Finding Text
U.S. Environmental Protection Agency Passed through State of Nevada Division of Environmental Protection Sewer Overflow and Stormwater Reuse Municipal Grant Program, 66.447 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing number 66.447 on the Schedule of Expenditures of Federal Awards Criteria: 2CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance the the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause: The City did not have adequate controls to ensure that all reimbursement requests were properly approved. Condition: Two out of five reimbursement requests had not evidence of approval. Effect: Reimbursement requests may be processed without proper authorization, increasing risk of improper payments. Questions Costs: None reported. Context/Sampling: All five reimbursement requests filed during the year were selected for testing; two lacked evidence of approval. Repeat Finding from Prior Year: No. Recommendation: We recommend the City implement procedures to ensure all reimbursement requests are properly approved and documented. Views of Responsible Officials: Management agrees with the finding.