FAC Explorer

Finding 1181969 (2022-105)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2026-03-23
Audit: 393293
Organization: Inter-Tribal Council of Nevada, Inc. (NV)
Auditor: WALKER & ARMSTRONG LLP

AI Summary

  • Core Issue: ITCN failed to verify that one out of 14 providers was licensed in Nevada, violating program guidelines.
  • Impacted Requirements: This oversight breaches 45 CFR §98.41, which mandates certification of health and safety compliance for subsidy recipients.
  • Recommended Follow-Up: ITCN should strictly enforce its policy to only subsidize licensed child care centers in Nevada.

Finding Text

Condition and Context: The program guidelines require ITCN to verify the safety of all providers who receive subsidies from the program. For one of 14 providers tested, ITCN did not obtain evidence that the provider was licensed in the State of Nevada to provide day care services. Criteria: 45 CFR §98.41, Health and Safety Requirements, requires agencies to certify that providers and their employees meet certain health and safety requirements. ITCN utilizes the State of Nevada’s child care center license to indicate compliance with these requirements. Cause and Effect: The cause is due to lack of resources and oversight. The effect is potentially providing subsidies to providers not in compliance with health and safety requirements. Recommendation: We recommend that ITCN adhere to its policy of only providing subsidies to State of Nevada licensed child care centers. Management’s Response: ITCN’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.

Corrective Action Plan

Condition and Context: The program guidelines require ITCN to verify the safety of all providers who receive subsidies from the program. For one of 14 providers tested, ITCN did not obtain evidence that the provider was licensed in the State of Nevada to provide day care services. Recommendation: The auditors recommended that ITCN adhere to its policy of only providing subsidies to State of Nevada licensed child care centers. Contact Name: Deserea Quintana, Executive Director Corrective Action Planned: ITCN implemented a Licensing Verification Checklist in every provider file. Also, a quarterly licensing review against the state registry, including a pre-payment license verification before any subsidy is issued. The Compliance Officer will conduct a semi-annual file spot-check on provider files. Anticipated Completion Date: Ongoing; the first quarterly licensing review under the new process was completed in September 2025, with the next review in December 2025.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1181957 2022-101
    Material Weakness Repeat
  • 1181958 2022-101
    Material Weakness Repeat
  • 1181959 2022-101
    Material Weakness Repeat
  • 1181960 2022-101
    Material Weakness Repeat
  • 1181961 2022-102
    Material Weakness Repeat
  • 1181962 2022-102
    Material Weakness Repeat
  • 1181963 2022-102
    Material Weakness Repeat
  • 1181964 2022-102
    Material Weakness Repeat
  • 1181965 2022-103
    Material Weakness Repeat
  • 1181966 2022-103
    Material Weakness Repeat
  • 1181967 2022-104
    Material Weakness Repeat
  • 1181968 2022-104
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $5.78M
93.600 HEAD START $2.25M
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $857,482
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $797,889
93.047 SPECIAL PROGRAMS FOR THE AGING, TITLE VI, PART A, GRANTS TO INDIAN TRIBES, PART B, GRANTS TO NATIVE HAWAIIANS $616,985
16.841 VOCA TRIBAL VICTIM SERVICES SET-ASIDE PROGRAM $384,493
17.265 NATIVE AMERICAN EMPLOYMENT AND TRAINING $320,227
11.029 TRIBAL BROADBAND CONNECTIVITY PROGRAM $288,819
93.054 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE VI, PART C, GRANTS TO INDIAN TRIBES AND NATIVE HAWAIIANS $230,319
15.029 TRIBAL COURTS $155,448
66.926 INDIAN ENVIRONMENTAL GENERAL ASSISTANCE PROGRAM (GAP) $125,314
16.587 VIOLENCE AGAINST WOMEN DISCRETIONARY GRANTS FOR INDIAN TRIBAL GOVERNMENTS $99,977
10.558 CHILD AND ADULT CARE FOOD PROGRAM $81,884
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $15,741
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $14,147
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $3,919
93.071 MEDICARE ENROLLMENT ASSISTANCE PROGRAM $3,793