Finding 1171970 (2025-004)

Material Weakness Repeat Finding
Requirement
N
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 lacks adequate internal controls to ensure compliance with FEMA reporting requirements for disaster grants.
  • Impacted Requirements: All grant awards under assistance listing 97.036 must include a complete “Description of Work Performed” in reports.
  • Recommended Follow-Up: Management should enhance procedures for report preparation and implement thorough reviews to ensure accuracy and completeness.

Finding Text

U.S. Department of Homeland Security Passed through State of Nevada Division of Emergency Management, Disaster Grants – Public Assistance, 97.036 Special Test and Provisions Significant Deficiency in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 97.036 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that for large projects, the recipient is required to make an accounting to FEMA of eligible costs. Similarly, the subrecipient must make an accounting to the recipient. In submitting the accounting, the entity is required to certify that reported costs were incurred in performance of eligible work, that the approved work was completed, that the project is in compliance with the provisions of the FEMA-State Agreement, all grant conditions were met, and that payments for that project were made in accordance with the applicable payment provisions. Condition: The County did not have adequate internal controls to ensure Special Test and Provisions requirements were met. The critical information reported did not have the required “Description of Work Performed” included on the reports. Cause: The County did not have adequate internal controls to ensure reports were accurately filed with all of the required information. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context Sampling: One reported was filed and tested which did not contain the required information. Repeat Findings from Prior Year(s): No Recommendation: We recommend management review its procedures over the preparation of reports to ensure all reports include the required information 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 controls to ensure Special Tests and Provisions requirements were met. The critical information reported did not have the required “Description of Work Performed” included on the reports. Corrective Action Plan: Eureka County will fill in all boxes on the grant report when being submitted to the Nevada Division of Emergency Management. Responsible Individual: Jayme Halpin, Assistant Public Works Director Anticipated Completion Date: Eureka County will amend the past quarterly reports and any future quarterly reports to reflect actual work performed on the report. This will be completed by January 29, 2026.

Categories

Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1171968 2025-002
    Material Weakness Repeat
  • 1171969 2025-003
    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