Finding Text
2022-005: U.S. Department of Justice, State of Nevada Division of Child and Family Services 16.575 Crime Victim Assistance Matching, Level of Effort and Earmarking and Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Grant Award Number: 16575-19-010 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Matching, Level of Effort and Earmarking, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts for matching but be verifiable, allowed under general cost principles, determined in accordance with generally accepted accounting principles and reported on the grant reports. Condition: Amounts for match was not properly reported on the financial report, in addition supporting documentation was not retained for all match and certain match recorded in accordance with generally accepted accounting principles Cause: Community Chest, Inc. (the Organization) did not have adequate internal controls to ensure that the report included match, was documented and recorded correctly. Effect: The Organization could not meet match requirements. Questioned Costs: $20,000 of in-kind rent was incorrectly included in the supporting documentation provided to the grantor for match. However, there was unreported inkind rent at other locations, which was not included and was in excess of the $20,000 included. As a result, there are no questioned costs for match. Context/sampling: A nonstatistical sample was not utilized, total match was compared to the grant report for the period July 1, 2020 to June 30, 2021 and each match item was tested. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over reporting, documenting and recording match. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.