United Way of Southern NevadaNon-Profit

February 6, 2026 Houldsworth, Russo & Co. P.C. 6001 S. Decatur Blvd. Suite P Las Vegas, Nevada 89118 This letter is in response to the audit of the financial statements of United Way of Southern Nevada, Inc. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT 2025-001 Internal Controls Systems and Compliance Over Subrecipient Monitoring – U.S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed Through the State of Nevada Department of Education Criteria: In accordance with 2 CFR 200.332(a)(1), the auditee must maintain a system of internal control to ensure information related to federal awards is clearly identified to the subrecipient at the time of the subaward and if any data elements change, include the changes in a subsequent subaward modification. Condition: The Organization receives funding for the Nevada Ready! program through the State of Nevada Department of Education. The amount of funding provided by Federal and state sources changes annually as does the Federal program from which the funds are derived. The Organization did not receive clear documentation from their grantor on the source of grant funding and did not clarify with the grantor on these requirements. The Organization then did not identify the correct Federal agency and assistance listing number for the grant awards provided to subrecipients. Context: Sixteen preschool centers received notification of subawards with an incorrect Federal agency and assistance listing number for the Federal funds received. Cause: The design and implementation of internal controls over subrecipient monitoring was not operating effectively. Effect: Not communicating the correct Federal agency and assistance listing number in a subaward to subrecipients could result in the subrecipients not complying with Federal regulations. Recommendation: We recommend management design and implement a system of internal controls whereby every subaward that includes Federal funding be clearly identified to the subrecipient as a Federal subaward and include all data elements required to be provided to the subrecipient at the time of the subaward. For any information where the Organization’s grantor has provided unclear or incomplete information, appropriate follow-up with the grantor should be performed. Additionally, if any of the data elements change, those changes should be included in a subsequent subaward modification. Views of Responsible Officials and Planned Corrective Action: We appreciate the identification of this compliance issue and are committed to addressing the finding with a robust corrective action plan. The following steps outline the measures we will take to ensure compliance with federal requirements for subrecipients. 1. Each subaward will be clearly identified as a federal subaward and include all required data elements at the time of issuance. Any subsequent changes will be communicated through a formal subaward modification process. 2. Each required data element will be reviewed and compared to the source data by the preparer and the final signer. If elements are unclear or incomplete, follow-up with the grantor will be performed before the execution of the agreement. If clarity cannot be obtained, the agreements will be executed, noting the area of unclear or incomplete data and that the information will be obtained and updated promptly through a formal subaward modification agreement. 3. In the event subsequent changes occur, these changes will be communicated through a formal subaward notification modification agreement. Responsible Official: Samuel Rudd, President & CEO

2024-001

FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT 2024-001 Internal Controls Systems and Compliance Over Subrecipient Monitoring – U.S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed Through the State of Nevada Department of Education Criteria: In accordance with 2 CFR 200.332(a)(1), the auditee must maintain a system of internal control to ensure information related to federal awards is clearly identified to the subrecipient at the time of the subaward and if any data elements change, include the changes in a subsequent subaward modification. Condition: The Organization receives funding for the Nevada Ready! program through the State of Nevada and the amount of funding provided by federal and state sources changes annually. The Organization did not identify that certain information required to be communicated for federally sourced awards was missing from the information provided to subrecipients for subawards they received during the year. Context: Nineteen preschool centers did not receive notification that the funding they received included funds that were federally sourced and additional information required to be communicated related to the federal funding was not provided. Cause: The design and implementation of internal controls over subrecipient monitoring was not effective. Effect: Not communicating the inclusion of federal funding in a subaward and all related requirements in a subaward to subrecipients could result in the subrecipients not complying with federal regulations. Recommendation: We recommend management design and implement a system of internal controls whereby every subaward that includes federal funding be clearly identified to the subrecipient as a federal subaward and include all data elements required to be provided to the subrecipient at the time of the subaward and if any of the data elements change, include the changes in a subsequent subaward modification. Views of Responsible Officials and Planned Corrective Action: We appreciate the identification of this compliance issue and are committed to addressing the finding with a robust corrective action plan. The following steps outline the measures we will take to ensure compliance with federal requirements for subrecipient monitoring under 2 CFR 200.332, effective June 30, 2024, and related guidance: 1. Implementation of Updated Grant Award Communication Procedures Future Grants to Centers: - We will estimate the amount of federal funds included in each grant and include this amount in the agreement at the time of award issuance. - Agreements will be updated to clearly delineate the specific requirements for both federal and state funds. - Each Center will acknowledge their responsibilities and obligations for federal and state funds, with detailed requirements provided for both funding sources. Annual Notifications: - A statement will be provided to each Center annually, clearly notifying them of the amount of federal funding included in their subaward. 2. Prioritization of FY24 Subrecipients - Upon receipt of these findings, immediate focus was placed on Nonprofit Centers, and we confirmed that none received more than $749,999 in federal awards (either directly as a recipient or indirectly as a subrecipient) in aggregate for all its projects during the fiscal year. - A statement will be provided to each Center annually, clearly notifying them of the amount of federal funding included in their subaward. - The corrective actions will be implemented by January 31, 2025. 3. FY25 Proactive Measures - Notifications of federal requirements and the Q1 statement for FY25 will be distributed by January 31, 2025. - We conducted an initial high-level overview of these updated requirements at the Director Training on November 15, 2024. - A comprehensive training session will follow in January 2025 to ensure all subrecipients fully understand their obligations under Uniform Guidance, including subaward identification and compliance monitoring. 4. Alignment with 2 CFR 200.332 Requirements for Pass-Through Entities In compliance with the updated requirements for pass-through entities under 2 CFR 200.332: -Each subaward will be clearly identified as a federal subaward and include all required data elements at the time of issuance. Any subsequent changes will be communicated through a formal subaward modification process. - Indirect cost rate requirements under 2 CFR 200.332 (i) will be explicitly addressed. Specifically: If the subrecipient has an approved federally recognized indirect cost rate, it will be honored. If no approved rate exists, we will collaborate with the subrecipient to determine an appropriate rate. This may include using a previously negotiated rate between the subrecipient and another pass-through entity, without requiring additional justification from the subrecipient. By implementing these measures, we will establish a robust system of internal controls to ensure full compliance with the Uniform Guidance and related federal requirements. We are confident these steps will address the identified issue and strengthen our subrecipient monitoring practices. Responsible Official: Samuel Rudd, President & CEO

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