Finding Text
2022-002 U.S. Department of Treasury Passed Through State of Nevada Governor?s Office of Economic Development COVID-19 Coronavirus State and Local Fiscal Recovery Fund CFDA 21.027 Reporting Significant Deficiency in Internal Control over Compliance and Non-compliance over Reporting Criteria: The OMB compliance supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by underlying accounting information or performance records, and are fairly presented in accordance with government requirements. The City of Fallon is required to submit the Project and Expenditure Report annually. The following are key line items on the Project and Expenditure report: current period obligation, cumulative obligation, current period expenditure, cumulative expenditure, subawards, and detailed information on loans issued. Condition: We noted the City incorrectly reported vendor expenditures as subawards when no subawards were granted by the City. Cause: The City did not have adequate internal controls for accurate reporting. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested. Repeat Finding from Prior Year: No. Recommendation: We recommend City of Fallon enhance internal controls to ensure its reports are accurate. Views of Responsible Officials: Management will closely review the Project and Expenditure Report User Guide to ensure future reports are in compliance.