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.