Finding 51262 (2022-001)

Finding 2022-001 U.S. Department of Treasury COVID-19 Emergency Rental Assistance, CFDA 21.023 Allowable Activities and Costs Significant Deficiency in Internal Control over Compliance Award Number(s) Affects grant awards ERA-001 under CFDA 21.023 on the Schedule of Expenditures of Federal Awards. Criteria The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition During our walkthroughs, we noted that there was not a formalized process/control to monitor the sub-recipient?s Reno Housing Authority activities and costs. Cause The Office of the County Manager did not have an adequate internal control to monitor the sub-recipient. Effect Inaccurate payment requests could be made to improper recipients without sufficient monitoring. Questioned costs None Repeat finding from prior year No Recommendation We recommend the Office of County Manager enhance internal control policies over sub-recipients. Views of Responsible Officials Internal controls will be monitored/created for future awards to the Reno Housing Authority Section II - Financial Statement Findings Required to be Reported in Accordance with Section III - Federal Award Findings and Questioned Costs C-