Finding 569663 (2023-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-06-30

AI Summary

  • Core Issue: Lack of proper internal controls, specifically no review and approval process for quarterly financial reports.
  • Impacted Requirements: Non-compliance with Title 2 U.S. CFR Part 200, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Enhance internal controls to ensure that all quarterly financial reports undergo proper review and approval.

Finding Text

U.S. Department of the Treasury Passed Through the Nevada Housing Division COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control Over Compliance Grant Award Number: SLFRP2634 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 effective 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. Condition: There was no evidence of review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Cause: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Effect: Inaccurate information could be reported to the federal awarding agency. Questioned Costs: None noted. Context/sampling: One quarterly financial report was required to be filed during the fiscal year. Report Finding from Prior Year(s): No. Recommendation: We recommend the Foundation enhance the internal controls to ensure quarterly financial reports are reviewed and approved. Views of Responsible Officials: The Foundation agrees with this finding; see corrective action plan.

Corrective Action Plan

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation did not have internal controls to ensure proper review and approval (segregation of duties) between the preparer and reviewer of the quarterly financial reports. Corrective Action Plan: Previous reports were compiled by the Foundation’s vendors and submitted by the prior CFO. Future reports will be prepared by the Accountant and reviewed by the CFO prior to submission. Responsible Individuals: Alisha Kinnison, Accountant and Matt Lazar, CFO Anticipated Completion Date: July 2025

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 569662 2023-003
    Significant Deficiency
  • 569664 2023-003
    Significant Deficiency
  • 569665 2023-004
    Significant Deficiency
  • 1146104 2023-003
    Significant Deficiency
  • 1146105 2023-004
    Significant Deficiency
  • 1146106 2023-003
    Significant Deficiency
  • 1146107 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $445,086
14.218 Community Development Block Grants/entitlement Grants $413,200