Finding Text
2022-013: U.S. Department of Agriculture Passed through State of Nevada Department of Agriculture Child Nutrition Cluster: National School Lunch Program, 10.555 U.S. Department of Education Passed through State of Nevada Department of Education Charter Schools, 84.282 Passed through State of Nevada Public Charter School Authority COVID-19 Education Stabilization Fund, 84.425 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listings 10.555, 84.282, and 84.425 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 effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Costs charged to the program did not have evidence of review by an individual independent of the preparation of the allocation of costs to the program. Cause: The School did not have adequate internal controls to ensure review of costs charged to the program occurred and was documented. Effect: Unallowable costs may be charged to the program and not detected by the School. Questioned Costs: None noted Context/Sampling: Child Nutrition Cluster, 10.555 A non-statistical sample of 26 transactions out of a population of 134 was selected for testing. There was no evidence of review on any of the 26 transactions tested. These 26 transactions totaled $183,657 out of the total expenditure population of $1,046,140. Charter Schools, 84.282 A non-statistical sample of nine goods and services transactions out of a population of 40 and the total population of two payroll transactions was selected for testing. There was no evidence of review on either of the two payroll transactions tested. These two payroll transactions totaled $39,049 out of the total expenditure population of $363,680. Education Stabilization Fund, 84.425 A non-statistical sample of 60 goods and services transactions out of a population of 245 and a non-statistical sample of 60 payroll transactions out of a population of 1920 was selected for testing. There was no evidence of review on any of the 120 transactions tested. These 120 transactions totaled $851,863 out of the total expenditure population of $2,608,399. Repeat Finding from Prior Year: No Recommendation: We recommend the School enhance internal controls to ensure review of costs charged to the program occurs and is documented. Views of Responsible Officials: Management agrees with this finding.