Finding 554112 (2024-010)

Material Weakness

Requirement

Questioned Costs

Year

2024

Accepted

2025-04-04

Audit: 352768

Organization: Tahoe Douglas Fire Protection District (NV)

Auditor: Eide Bailly LLP

AI Summary

Core Issue: There is a material weakness in internal controls over compliance, leading to inaccurate reporting on federal financial and performance reports.
Impacted Requirements: Compliance with Title 2 U.S. CFR Part 200, which mandates effective internal controls and accurate reporting for federal awards.
Recommended Follow-up: Enhance internal controls to ensure documented review and approval of SF-425 and Performance Reports.

Finding Text

2024-010: U.S. Department of Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 15.235 on the Schedule of Expenditures of Federal Awards. 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 effect 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. The grant awards require the submission of Federal Financial Reports (SF-425) and Performance Reports. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer. Information reported did not agree to underlying supporting records. Cause: Tahoe Douglas Fire Protection District (the District) did not have adequate internal controls to provide for the documented review and approval of SF-425 reports or Performance Reports. Effect: Inaccurate information was reported to the federal agency on the SF-425 and inaccurate information was reported to the pass-through entity on the Performance Reports. Questioned Costs: None Context/Sampling: A non-statistical sample of two SF-425 reports out of a population of four was selected for testing. A non-statistical sample of two Performance Reports out of a population of four was selected for testing. We noted that there was no evidence of review on all four reports tested. Amounts reported on all four reports tested did not agree to underlying support. Errors are noted as follows: SF-425 for Quarter Ended 9/30/2023: SF-425 for Quarter Ended 3/31/2024: Performance Report to TRCD for Quarter End 9/30/2023: Performance Report to TRCD for Quarter End 12/31/2023: Repeat Finding from Prior Year: No Recommendation: We recommend the District enhance internal controls to provide for the documented review and approval of SF-425 reports and Performance Reports. Views of Responsible Officials: Tahoe Douglas Fire Protection District agrees with this finding.

Corrective Action Plan

Finding 2024-010 U.S. Department of the Interior Direct award and Pass-through Tahoe Resource Conservation District Southern Nevada Public Land Management, 15.235 Finding Summary: Performance reports and SF-425’s does not have segregation of duties between preparer and reviewer. The information reported was not supported by back up documentation. Responsible Individuals: Scott Lindgren, Fire Chief, Tahoe Douglas Fire Protection District Keegan Schafer, Wildland Fire & Fuels Division Chief, Tahoe Douglas Fire Protection District Carrie Nolting, Finance Manager, Tahoe Douglas Fire Protection District Corrective Action Plan: Performance reports and back up documentation prepared by Chief Schafer will be reviewed by either Chief Lindgren or FM Nolting and the review will be documented. SF-425’s that are completed electronically in GrantSolutions does not allow for a preparer and review. FM Nolting will prepare amounts and provide backup documentation to be reported in SF-425 for review by either Chief Schafer or Chief Lindgren and the review will be documented prior to input into GrantSolutions. Anticipated Completion Date: Ongoing

Other Findings in this Audit

554110 2024-008

Material Weakness
554111 2024-009

Significant Deficiency
554113 2024-008

Material Weakness
554114 2024-009

Significant Deficiency
554115 2024-010

Material Weakness
554116 2024-007

Significant Deficiency
1130552 2024-008

Material Weakness
1130553 2024-009

Significant Deficiency
1130554 2024-010

Material Weakness
1130555 2024-008

Material Weakness
1130556 2024-009

Significant Deficiency
1130557 2024-010

Material Weakness
1130558 2024-007

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
97.044	Assistance to Firefighters Grant	$364,388
10.693	Watershed Restoration and Enhancement Agreement Authority	$238,000
15.235	Southern Nevada Public Land Management	$173,419
97.067	Homeland Security Grant Program	$117,368