Finding 48428 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-16
Audit: 41405
Organization: City of North Las Vegas (NV)
Auditor: Crowe LLP

AI Summary

  • Core Issue: Monthly and quarterly reports were submitted late, violating Department of Treasury ERA1 reporting guidance.
  • Impacted Requirements: Reports must be submitted by the 15th of the following month and the 15th after each quarter, but two monthly and one quarterly report were late.
  • Recommended Follow-Up: Implement effective internal controls and provide formal training to ensure timely submissions in the future.

Finding Text

Criteria or Specific Requirement: In accordance with the Department of Treasury ERA1 reporting guidance, grantees are required to submit monthly reports by the 15th of the following month and quarterly reports by the 15th day of the month following the calendar quarter end. Condition: There were three monthly reports selected for testing, of which 2 were submitted late. The February 2022 monthly report was submitted two days late on March 15, 2022, and the April 2022 monthly report was submitted one day late on May 17, 2022. Note the 15th fell on a Sunday, thereby making the due date Monday, May 16, 2022. Of the two quarterly reports selected for testing, one was submitted three days late on July 18, 2022, instead of the 15th of the month as required. Cause: Controls were not consistently applied. Effect: The City did not have effective controls in place to ensure timely submission of reports by the required due date. Questioned Costs: None. Context: Guidance for required submission dates is provided for each month and each quarter so that it is clear to grantees which dates are the dues dates for both monthly and quarterly reports. Identification of a repeat finding: Not a repeat finding. Recommendation: We recommend that management establish and maintain effective internal control ensuring timely submission required under the Department of Treasury ERA1 reporting guidance. In addition, we recommend that the City conduct formal training to ensure that management has sufficient knowledge of the applicable reporting requirements. Management Response: See Corrective Action Plan.

Corrective Action Plan

The management team agrees with the auditor?s recommendation and has already implemented additional controls to address the stated concerns. Effective July 1, 2022, the City created a separate Grants division to centralize the application, compliance and administration of federal grants. This department is responsible for creating a City-wide Grants Policy and Procedures Manual related to grants including but not limited to: acceptance of an award, managing an award, initiating and monitoring subawards, programmatic and financial reporting and closeout of awards. The Grants Director is responsible for the corrective action as it relates to this finding.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48426 2022-004
    Significant Deficiency
  • 48427 2022-005
    Significant Deficiency
  • 48429 2022-002
    Significant Deficiency
  • 48430 2022-002
    Significant Deficiency
  • 624868 2022-004
    Significant Deficiency
  • 624869 2022-005
    Significant Deficiency
  • 624870 2022-003
    Significant Deficiency
  • 624871 2022-002
    Significant Deficiency
  • 624872 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $7.45M
21.023 Emergency Rental Assistance Program $3.42M
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.53M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $1.44M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.19M
16.034 Coronavirus Emergency Supplemental Funding Program $533,258
97.067 Homeland Security Grant Program $326,267
16.710 Public Safety Partnership and Community Policing Grants $183,779
20.600 State and Community Highway Safety $162,327
14.231 Emergency Solutions Grant Program $155,836
32.009 Emergency Connectivity Fund Program $155,583
16.922 Equitable Sharing Program $111,798
16.575 Crime Victim Assistance $97,145
15.235 Southern Nevada Public Land Management $85,747
16.588 Violence Against Women Formula Grants $49,727
11.307 Economic Adjustment Assistance $44,550
97.042 Emergency Management Performance Grants $41,526
16.609 Project Safe Neighborhoods $39,461
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $37,834
20.616 National Priority Safety Programs $37,176
16.543 Missing Children's Assistance $31,993
14.239 Home Investment Partnerships Program $29,098
16.593 Residential Substance Abuse Treatment for State Prisoners $24,970
66.458 Capitalization Grants for Clean Water State Revolving Funds $16,651
16.738 Edward Byrne Memorial Justice Assistance Grant Program $9,507
16.833 National Sexual Assault Kit Initiative $6,528
14.256 Neighborhood Stabilization Program $5,104
45.310 Grants to States $5,000
14.218 Community Development Block Grants/entitlement Grants $3,971
45.164 Promotion of the Humanities_public Programs $3,508
20.205 Highway Planning and Construction $74