March 26, 2025
Eide Bailly, LLP
Supervisor, Local Government & Finance
Reno, NV 89706
Dear Mr. Kurt Schlicker,
We have received and reviewed the audit report issued by your firm regarding our financial statements for the fiscal year ended June 30, 2024. We appreciate the thoroughness and professionalism demonstrated by your audit team throughout the process.
We acknowledge the critical importance of establishing and maintaining an effective system of internal control over compliance, particularly in relation to accurate reporting of financial data reporting per 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. As such, we are committed to taking immediate corrective actions to address accurate reporting of the SF-425 reports to the federal agency. We have outlined below the specific steps we have already undertaken and will undertake:
1. Revise & Standardize Reporting Procedures:
a. Review the current SF-425 reporting procedures to identify gaps and inconsistencies.
b. Revise and standardize the SF-425 reporting workflow to ensure consistency and accuracy in data entry.
c. Implement a checklist for all required data fields on the SF-425 form to ensure no information is omitted or inaccurately reported.
d. Develop clear guidelines for preparing and submitting the SF-425, detailing the roles and responsibilities of all staff involved.
e. Establish a timeline for regular preparation and submission, ensuring reports are submitted on time.
2. Staff Training:
a. Develop a targeted training program for staff responsible for preparing and submitting SF-425 reports, covering the details of the form, reporting standards, and compliance requirements outlined in 2 CFR Part 200.
b. Conduct training sessions on accurate financial reporting, how to fill out the SF-425 form, and the importance of timely submission. Offer refresher training annually or whenever there are significant changes to the reporting process or the Uniform Guidance.
c. Create written documentation, such as a manual or guide, to assist staff in preparing future reports.
3. Strengthen Internal Monitoring and Oversight Mechanisms:
a. Create a two-tier review process: first, a departmental review by the grant administrator or compliance officer, followed by an executive-level review by a department head.
b. Develop a checklist of specific financial items (e.g., total grant expenditures, unliquidated obligations, remaining balances) to ensure that all necessary data is accurately reflected.
c. Ensure that any discrepancies identified during the review process are corrected prior to submission.
d. Document all approvals and review steps for transparency and accountability.
4. Establish a Reporting Calendar and System for Timely Submission:
a. Create a comprehensive reporting calendar that includes the submission deadlines for all SF-425 reports, as well as internal deadlines for review and approval.
b. Implement a reminder system to notify relevant staff members in advance of upcoming deadlines for SF-425 submissions.
c. Ensure that all parties involved in the reporting process are aware of their specific deadlines and responsibilities, with ample time allocated for review and approval.
d. Monitor submission timelines to ensure that reports are submitted without delay.
5. Responsible Parties and Accountability to be designated:
a. Department Head: Responsible for reviewing the SF-425 and provide ongoing oversight of the reporting process.
b. Finance Department: Responsible for preparing the SF-425 reports, ensuring that financial data is accurate and complies with federal guidelines.
c. Grant Administrator/Compliance Officer: Oversee the development and implementation of the corrective action plan, ensure compliance with federal regulations, and review SF-425 reports for accuracy and completeness.
d. Procurement Staff: Ensure all financial activities related to the AFG are properly documented and reported in the SF-425.
By implementing these corrective actions, we are committed to addressing the material weakness in compliance, including accurate reporting of SF-425 financial data. These steps will enhance the accuracy, reliability, and transparency of our financial reporting and improve our internal controls over our financial and federal reporting.
The District is committed to ensuring the accurate and timely submission of SF-425 reports in accordance with federal regulations and the Uniform Guidance. By implementing this corrective action plan, we will strengthen our internal controls over compliance and reporting, ensuring that all federal financial reports are submitted correctly and within the required timelines. Through the establishment of robust procedures, training, and continuous monitoring, we aim to maintain the integrity and compliance of our financial reporting process for the Assistance to Firefighters Grant Program.
We appreciate your insights and recommendations provided during the audit process and welcome any additional guidance or support your firm can offer as we work to address the identified weaknesses. Should you have any questions or require further information, please do not hesitate to contact me.
Thank you for your continued partnership and support.
Sincerely,
Jackie Signorelli
CFO