FAC Explorer

Finding 61122 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-05
Audit: 49725
Organization: City of Las Vegas (NV)
Auditor: Crowe LLP

AI Summary

  • Core Issue: The City lacks proper internal controls for reviewing and approving financial and performance reports for the Disaster Grants program.
  • Impacted Requirements: This deficiency violates 2 CFR 200, which mandates effective internal controls to ensure compliance with federal regulations.
  • Recommended Follow-Up: Management should enhance documentation practices to include signatures and dates for all report submissions to confirm internal review and approval.

Finding Text

Finding 2022-003: Internal Controls Over Financial and Performance Reporting ? Significant Deficiency Program: COVID-19 - Disaster Grants ? Public Assistance Assistance Listing No.: 97.036 Federal Agency: Federal Emergency Management Agency Award No.: PA-09-NV-4523-PW-00052 (0); PA-09-NV-4523-PW-00065 Award Year: Fiscal year 2021-2022 Category of Finding: Reporting Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, section 303(a) states, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: For the Disaster Grants ? Public Assistance program, the City did have adequate documentation of internal controls in place related to the programs reporting of Quarterly Financial Reports and Quarterly Performance Reports. Cause: Policies and procedures were not in place to ensure adequate documentation and retention of documentation regarding the review and approval process for reports required by the program. Effect: Insufficient internal controls over the accuracy and timely filing of reports in accordance with federal regulations could result in the program being noncompliant with federal statutes, regulations and the terms and conditions of the program. Questioned Costs: None. Context: During our walkthrough of the internal control assessment of the Disaster Grants ? Public Assistance Program reporting for Financial and Performance reports, we noted there was not evidence of internal controls in place over the review and approval of the Quarterly Financial Report and the Quarterly Performance Reports. Identification of a repeat finding: Not a repeat finding. Recommendation: We recommend that management strengthen their internal controls documentation related to reporting for the Disaster Grants ? Public Assistance program. Management Response: This finding relates to the absence of a signature and date indicating a management review before submission for reimbursement as evidence of an internal control. Management concurs that there was no signature and date reviewed for submissions related to the Disaster Grants ? Public Assistance program. Management will implement a process where all submissions to federal agencies will be signed and dated prior to submission as an indication of internal control over the approval process.

Corrective Action Plan

Finding 2022-003: Internal Controls Over Financial and Performance Reporting ? Significant Deficiency Management Response and Planned Corrective Action This finding relates to the absence of a signature and date indicating a management review before submission for reimbursement as evidence of an internal control. Management concurs that there was no signature and date reviewed for submissions related to the Disaster Grants ? Public Assistance program. Management will implement a process where all submissions to federal agencies will be signed and dated prior to submission as an indication of internal control over the approval process.

Categories

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

Other Findings in this Audit

  • 61111 2022-005
    Significant Deficiency
  • 61112 2022-005
    Significant Deficiency
  • 61113 2022-005
    Significant Deficiency
  • 61114 2022-005
    Significant Deficiency
  • 61115 2022-005
    Significant Deficiency
  • 61116 2022-005
    Significant Deficiency
  • 61117 2022-005
    Significant Deficiency
  • 61118 2022-004
    Significant Deficiency
  • 61119 2022-004
    Significant Deficiency
  • 61120 2022-004
    Significant Deficiency
  • 61121 2022-004
    Significant Deficiency
  • 637553 2022-005
    Significant Deficiency
  • 637554 2022-005
    Significant Deficiency
  • 637555 2022-005
    Significant Deficiency
  • 637556 2022-005
    Significant Deficiency
  • 637557 2022-005
    Significant Deficiency
  • 637558 2022-005
    Significant Deficiency
  • 637559 2022-005
    Significant Deficiency
  • 637560 2022-004
    Significant Deficiency
  • 637561 2022-004
    Significant Deficiency
  • 637562 2022-004
    Significant Deficiency
  • 637563 2022-004
    Significant Deficiency
  • 637564 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid - 19 - Coronavirus State and Local Fiscal Recovery Funds $6.53M
14.231 Covid - 19 - Emergency Solutions Grant Program $3.90M
14.218 Covid - 19 - Community Development Block Grants/entitlement Grants $2.22M
97.036 Covid - 19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.92M
14.241 Housing Opportunities for Persons with Aids $1.25M
15.235 Southern Nevada Public Land Management $1.09M
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $688,305
21.023 Covid - 19 - Emergency Rental Assistance Program $607,878
97.042 Emergency Management Performance Grants $393,361
84.287 Twenty-First Century Community Learning Centers $320,048
14.239 Home Investment Partnerships Program $266,206
97.083 Staffing for Adequate Fire and Emergency Response (safer) $231,582
14.218 Community Development Block Grants/entitlement Grants $218,437
14.241 Covid - 19 - Housing Opportunities for Persons with Aids $165,799
93.137 Community Programs to Improve Minority Health Grant Program $151,971
14.231 Emergency Solutions Grant Program $147,260
59.075 Covid - 19 - Shuttered Venue Operators Grant Program $138,511
97.067 Homeland Security Grant Program $102,678
16.606 State Criminal Alien Assistance Program $79,952
97.042 Covid - 19 - Emergency Management Performance Grants $64,714
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $40,000
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $31,500
97.044 Covid - 19 - Assistance to Firefighters Grant $28,911
11.307 Economic Adjustment Assistance $24,625
45.024 Promotion of the Arts_grants to Organizations and Individuals $20,000
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $15,000
15.904 Historic Preservation Fund Grants-in-Aid $14,351
16.738 Edward Byrne Memorial Justice Assistance Grant Program $10,385
64.034 Va Assistance to United States Paralympic Integrated Adaptive Sports Program $8,755
94.006 Americorps $7,189
20.205 Highway Planning and Construction $7,022
20.600 State and Community Highway Safety $4,342
20.616 National Priority Safety Programs $3,855
45.025 Promotion of the Arts_partnership Agreements $2,500
45.129 Promotion of the Humanities_federal/state Partnership $555