Eureka CountyLocal Government

U.S. Department of Treasury Passed through State of Nevada Department of Conservation and Natural Resources COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects grant award under assistance listing number 21.027 on the Schedule of Expenditure of Federal Awards Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires entities use their own documented procurement procedures, provided they reflect State, Local, and Federal laws and regulations. Condition: Procurement processes required for acquiring goods and services were not followed. Procedures were not followed to maintain documentation regarding obtaining suspension and debarment documentation on covered transactions. Cause: The County did not have adequate internal controls to ensure procurement suspension and debarment was properly documented and maintained for procurement requirements. Effect: The County’s control system could not verify that the suspension and debarment verification was performed prior to entering into contracts. There was no noncompliance as the vendors were not suspended or debarred. Questioned Costs: None reported. Context/Sampling: All contracts covered during the year were tested, which was three total contracts. None of the contracts contained documentation relating to suspension and debarment verification. Repeat Findings from Prior Year(s): No Recommendation: We recommend management review its control procedures over Procurement to ensure proper procedures are in place to ensure a party is not suspended or debarred. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Treasury Passed through State of Nevada Department of Conservation and Natural Resources COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Reporting Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Eureka County must submit quarterly Project and Expenditure Reports that contain CLSFRF costs incurred during the covered period to the State of Nevada. Using the Nevada Infrastructure Financial System. Critical information includes: • Reimbursement Amount Condition: The County did not have adequate internal controls to ensure reporting requirements were met. The critical information reported did not reconcile to supporting documentation related to reimbursed amounts, for one report out of three tested reports. Cause : The County did not have adequate internal controls to ensure reports were accurately filed. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context Sampling: A nonstatististical sample of three reports were selected for testing out of a total of four reports filed during the year. One of the three reports tested contained incorrect reimbursement amount information. Repeat Findings from Prior Year(s): No Recommendation: We recommend management review its procedures over the preparation of reports to ensure all reports reconcile to supporting documentation and are adequately reviewed for accuracy. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Homeland Security Passed through State of Nevada Division of Emergency Management, Disaster Grants – Public Assistance, 97.036 Special Test and Provisions Significant Deficiency in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 97.036 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that for large projects, the recipient is required to make an accounting to FEMA of eligible costs. Similarly, the subrecipient must make an accounting to the recipient. In submitting the accounting, the entity is required to certify that reported costs were incurred in performance of eligible work, that the approved work was completed, that the project is in compliance with the provisions of the FEMA-State Agreement, all grant conditions were met, and that payments for that project were made in accordance with the applicable payment provisions. Condition: The County did not have adequate internal controls to ensure Special Test and Provisions requirements were met. The critical information reported did not have the required “Description of Work Performed” included on the reports. Cause: The County did not have adequate internal controls to ensure reports were accurately filed with all of the required information. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context Sampling: One reported was filed and tested which did not contain the required information. Repeat Findings from Prior Year(s): No Recommendation: We recommend management review its procedures over the preparation of reports to ensure all reports include the required information and are adequately reviewed for accuracy. Views of Responsible Officials: Management agrees with the finding.