Finding Text
U.S. Department of Treasury Pass-through Washoe County COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects grant award ARPA-SLFRF #48 included 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. The grant award agreement states Truckee Meadows Fire Protection District (the District) shall submit a quarterly financial report identifying expenses for all cost categories detailed in the grant agreement. Condition: Certain amounts included in the reports submitted did not agree to underlying support and there was no review process in place over the reports submitted. Cause: The District did not have adequate internal controls to ensure Quarterly Financial Reports were reconciled to underlying supporting documentation. Effect: Inaccurate information was reported to the grantor. Questioned Costs: None Context/Sampling: No sampling was used. The entire population of two Quarterly Financial Reports was selected for testing. Neither report was reviewed prior to submission and variances were noted as follows: Reporting Period Ended September 30, 2024: Amount Reported Amount Supported by Underlying Documentation Reimbursement Amount $500,000 $0 Total Disbursed $500,000 $0 Total Spent $500,000 $0Amounts were not spent until November 2024 and were reimbursed/disbursed by the grantor in February 2025 (thus reported in the wrong quarter). Reporting Period Ended December 31, 2024: Amount Reported Amount Supported by Underlying Documentation Reimbursement Amount $500,000 $0 Total Disbursed $500,000 $0 Amounts were not reimbursed/disbursed by the grantor until February 2025 (thus reported in the wrong quarter). Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to ensure Quarterly Financial Reports are reconciled to underlying supporting documentation and are reviewed prior to submission. Views of Responsible Officials: Truckee Meadows Fire Protection District agrees with this finding