Finding Text
U.S. Department of the Treasury Passed Through the Nevada Housing Division COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP2634 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) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Cause: The Foundation's procedures did not include segregation of duties between the preparer and reviewer of the quarterly financial reports. Effect: Inaccurate information could be reported to the federal awarding agency. Questioned Costs: None noted. Context/sampling: Two quarterly financial reports out of a population of four was selected for testing. Repeat Finding from Prior Year: Yes, 2024-002 Recommendation: We recommend the Foundation enhance the internal controls to ensure quarterly financial reports are reviewed and approved. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.