Finding 1215364 (2025-008)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-05-21
Audit: 401913
Organization: Humboldt County (NV)

AI Summary

  • Core Issue: The County's procurement process did not ensure full and open competition for grant-funded contracts, violating federal guidelines.
  • Impacted Requirements: Non-compliance with 2 CFR Part 200, specifically sections 200.318 to 200.326, and reliance on incorrect NRS requirements.
  • Recommended Follow-Up: Provide additional training for grant oversight staff and strengthen controls to align procurement practices with federal and County policies.

Finding Text

Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform guidance) requires non-federal entities other than States to follow their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR sections 200.318 through 200.326. This includes using the small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(b). Condition, Cause, and Effect/Potential Effect: Internal controls at the County were not sufficient to ensure full and open competition on grant-funded contracts. Individuals involved in the procurement process incorrectly relied on NRS requirements instead of the County’s procurement policy and federal procurement guidelines. Questioned Costs: None noted. Context: A nonstatistical sample of the procurement transactions funded with the ARPA Coronavirus State and Local Recovery Funds revealed that the County did not conduct procurement transactions in a manner providing fair and open competition on two construction contracts. Recommendation: We recommend that the County provide additional training to grantoversight personnel and ensure controls are sufficiently enhanced to ensure procurement policies are followed on federal grant-funded purchases. Views of Responsible Officials and Planned Corrective Actions: We agree with this finding and will enhance control procedures as recommended. Repeat Finding from Prior Year: Yes; 2024-008.

Corrective Action Plan

This is the result of procurement transactions fonded with the ARPA Coronavirus State and Local Recovery Funds. The County did not conduct procurement transactions in a manner providing fair and open competition on two constrnction contracts. The comptrollers office will enhance procurement policies and review of federal grant funded purchases.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1215360 2025-008
    Material Weakness Repeat
  • 1215361 2025-008
    Material Weakness Repeat
  • 1215362 2025-008
    Material Weakness Repeat
  • 1215363 2025-008
    Material Weakness Repeat
  • 1215365 2025-009
    Material Weakness Repeat
  • 1215366 2025-009
    Material Weakness Repeat
  • 1215367 2025-009
    Material Weakness Repeat
  • 1215368 2025-009
    Material Weakness Repeat
  • 1215369 2025-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $241,955
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $221,291
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $163,682
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $144,692
16.585 TREATMENT COURT DISCRETIONARY GRANT PROGRAM $77,783
10.242 WIC WORKFORCE €“ WEBNEERS EVALUATION SYSTEM PLATFORM $38,491
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $23,144
93.563 CHILD SUPPORT SERVICES $19,360
97.082 EARTHQUAKE STATE ASSISTANCE $16,450
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $14,998
10.759 PART 1774 SPECIAL EVALUATION ASSISTANCE FOR RURAL COMMUNITIES AND HOUSEHOLDS (SEARCH) $12,321
45.310 GRANTS TO STATES $10,000
10.664 COOPERATIVE FORESTRY ASSISTANCE $8,457
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $8,370
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $7,258
16.606 STATE CRIMINAL ALIEN ASSISTANCE PROGRAM $7,013
93.586 STATE COURT IMPROVEMENT PROGRAM $7,000
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $6,151
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $3,017
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $1,065
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $468