Finding 1171968 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-02-02
Audit: 385051
Organization: Eureka County, Nevada (NV)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The County did not follow required procurement processes for acquiring goods and services, specifically regarding suspension and debarment documentation.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations Part 200 is necessary for proper procurement procedures.
  • Recommended Follow-Up: Management should review and improve procurement controls to ensure verification of suspension and debarment before contracts are signed.

Finding Text

U.S. Department of Treasury Passed through State of Nevada Department of Conservation and Natural Resources COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects grant award under assistance listing number 21.027 on the Schedule of Expenditure of Federal Awards Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining suspension and debarment documentation on covered transactions. Cause: The County did not have adequate internal controls to ensure procurement suspension and debarment was properly documented and maintained for procurement requirements. Effect: The County’s control system could not verify that the suspension and debarment verification was performed prior to entering into contracts. There was no noncompliance as the vendors were not suspended or debarred. Questioned Costs: None reported. Context/Sampling: All contracts covered during the year were tested, which was three total contracts. None of the contracts contained documentation relating to suspension and debarment verification. Repeat Findings from Prior Year(s): No Recommendation: We recommend management review its control procedures over Procurement to ensure proper procedures are in place to ensure a party is not suspended or debarred. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding Summary: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining suspension and debarment documentation on covered transactions. Corrective Action Plan: Eureka County has implemented a grant checklist which will require departments who receive grant funds to check the suspension and debar list prior to any contractors being awarded a bid for services. Responsible Individual: Jeb Rowley, Public Works Director Anticipated Completion Date: Grant Checklist was prepared and disbursed to all departments on December 19, 2025.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1171969 2025-003
    Material Weakness Repeat
  • 1171970 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $3.16M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $802,209
15.230 INVASIVE AND NOXIOUS PLANT MANAGEMENT $66,061
10.569 EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES) $27,841
15.228 BLM FUELS MANAGEMENT AND COMMUNITY FIRE ASSISTANCE PROGRAM ACTIVITIES $24,456
15.234 SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION $10,592
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $7,406
93.569 COMMUNITY SERVICES BLOCK GRANT $6,631
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $5,417
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $2,807
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $1,614