Finding 1171969 (2025-003)

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

AI Summary

  • Core Issue: Eureka County lacks adequate internal controls for accurate reporting of COVID-19 grant expenditures.
  • Impacted Requirements: Reports must align with OMB Compliance Supplement criteria, including accurate reconciliation with supporting documentation.
  • Recommended Follow-Up: Management should enhance procedures to ensure all reports are accurate and properly reviewed before submission.

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 Reporting Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Eureka County must submit quarterly Project and Expenditure Reports that contain CLSFRF costs incurred during the covered period to the State of Nevada. Using the Nevada Infrastructure Financial System. Critical information includes: • Reimbursement Amount Condition: The County did not have adequate internal controls to ensure reporting requirements were met. The critical information reported did not reconcile to supporting documentation related to reimbursed amounts, for one report out of three tested reports. Cause : The County did not have adequate internal controls to ensure reports were accurately filed. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context Sampling: A nonstatististical sample of three reports were selected for testing out of a total of four reports filed during the year. One of the three reports tested contained incorrect reimbursement amount information. Repeat Findings from Prior Year(s): No Recommendation: We recommend management review its procedures over the preparation of reports to ensure all reports reconcile to supporting documentation and are adequately reviewed for accuracy. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding Summary: The County did not have adequate internal controls to ensure reporting requirements were met. The critical information reported did not reconcile to supporting documentation related to reimbursement amounts, for one report out of three tested reports. Corrective Action Plan: Eureka County will submit quarterly reports which reflect the actual reimbursement received during that quarter. Responsible Individual: Jayme Halpin, Assistant Public Works Director Anticipated Completion Date: Public Works will correct the quarterly reports with the State Department of Conservation and Natural Resources to ensure the reports reflect actual revenue received during the quarter being reported. This will be completed by January 29, 2026.

Categories

Reporting Cash Management Material Weakness

Other Findings in this Audit

  • 1171968 2025-002
    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