Washoe County

2025-003: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Subrecipient Monitoring Material Weakness in Internal Control over Compliance Grant Award Number: Affects all awards passed through U.S. Department of Treasury. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.332 requires that: Pass-through entities must identify the dollar amount made available under each Federal award and the Assistance Listing Number at time of disbursement. Pass-through entities must have a mechanism in place to track whether a single audit was required of the subrecipient and to verify the subrecipient took timely and appropriate action on all deficiencies and that they issued a management decision on audit findings pertaining to the Federal award. Condition: For five transactions tested the assistance listing number was not communicated to the subrecipient at the time of disbursement. For all six subrecipients tested there was no monitoring in place to track single audits of the subrecipients to ensure they were monitored or reviewed when required. Cause: The Office of the County Manager did not have adequate internal controls to ensure subrecipient monitoring requirements were followed. Effect: Noncompliance at the subrecipient level may occur and not be detected by the County. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 27 out of 180 subrecipient transactions were selected for testing. A nonstatistical sample of 6 out of 37 subrecipients were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2024-004. Recommendation: We recommend the County Managers office enhance internal controls to ensure subrecipient monitoring requirements are followed. Views of Responsible Officials: Management agrees with the finding.

2025-004: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), 21.027 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all awards passed through U.S. Department of Treasury. 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. Washoe County must submit quarterly Project and Expenditure Reports that contain CSLFRF costs incurred during the covered period to the Treasury Office of Inspector General. Critical information includes: • Current period obligation • Cumulative obligation • Current period expenditure • Cumulative expenditure • Revenue loss calculation validation • Capital expenditures – quantifiable objective criteria: The recipient has the required written justification in their grant file if the total of the capital expenditures costs in a project is greater than $1 million and less than $10 million; or, the recipient submitted the required justification to Treasury if (1) a project has total capital expenditures enumerated by Treasury in the Final Rule; or (2) the total of a projects capital expenditures costs is greater than $1 million for capital expenditures not enumerated by Treasury in the Final Rule. Condition: The Office of the County Manager did not have adequate internal controls to ensure reporting requirements were met. For two of the quarterly reports selected, information reported did not have underlying support that tied to the reported amounts for current period expenditures and cumulative expenditures. Cause: The Office of the County Manager did not have adequate internal controls to ensure proper documentation was maintained for reporting requirements. Effect: Amounts reported to the Department of Treasury for program expenditures may not agree to underlying support. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two out of four quarterly reports were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2024-005. Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure appropriate documentation to support reporting is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-004: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Subrecipient Monitoring Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 21.027 on the Schedule of Expenditures and 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) section 200.332 requires that: Pass-through entities must identify the dollar amount made available under each Federal award and the Assistance Listing Number at time of disbursement. Pass-through entities must have a mechanism in place to track whether a single audit was required of the subrecipient and to verify the subrecipient took timely and appropriate action on all deficiencies and that they issued a management decision on audit findings pertaining to the Federal award. Condition: For all 29 transactions tested the assistance listing number was not communicated to the subrecipient at the time of disbursement. For all eight subrecipients tested there was no monitoring in place to track single audits of the subrecipients to ensure they were monitored or reviewed when required. Cause: The Office of the County Manager did not have adequate internal controls to ensure subrecipient monitoring requirements were followed. Effect: Noncompliance at the subrecipient level may occur and not be detected by the County. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 29 out of 191 subrecipient transactions were selected for testing. A nonstatistical sample of 8 out of 40 subrecipients were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-004. Recommendation: We recommend the County Managers office enhance internal controls to ensure subrecipient monitoring requirements are followed. Views of Responsible Officials: Management agrees with the finding.

2024-004: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Subrecipient Monitoring Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 21.027 on the Schedule of Expenditures and 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) section 200.332 requires that: Pass-through entities must identify the dollar amount made available under each Federal award and the Assistance Listing Number at time of disbursement. Pass-through entities must have a mechanism in place to track whether a single audit was required of the subrecipient and to verify the subrecipient took timely and appropriate action on all deficiencies and that they issued a management decision on audit findings pertaining to the Federal award. Condition: For all 29 transactions tested the assistance listing number was not communicated to the subrecipient at the time of disbursement. For all eight subrecipients tested there was no monitoring in place to track single audits of the subrecipients to ensure they were monitored or reviewed when required. Cause: The Office of the County Manager did not have adequate internal controls to ensure subrecipient monitoring requirements were followed. Effect: Noncompliance at the subrecipient level may occur and not be detected by the County. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 29 out of 191 subrecipient transactions were selected for testing. A nonstatistical sample of 8 out of 40 subrecipients were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-004. Recommendation: We recommend the County Managers office enhance internal controls to ensure subrecipient monitoring requirements are followed. Views of Responsible Officials: Management agrees with the finding.

2024-005: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), 21.027 Reporting Material Weakness in Internal Control over Compliance and Material 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. Washoe County must submit quarterly Project and Expenditure Reports that contain CSLFRF costs incurred during the covered period to the Treasury Office of Inspector General. Critical information includes: • Current period obligation • Cumulative obligation • Current period expenditure • Cumulative expenditure • Revenue loss calculation validation • Capital expenditures – quantifiable objective criteria: The recipient has the required written justification in their grant file if the total of the capital expenditures costs in a project is greater than $1 million and less than $10 million; or, the recipient submitted the required justification to Treasury if (1) a project has total capital expenditures enumerated by Treasury in the Final Rule; or (2) the total of a projects capital expenditures costs is greater than $1 million for capital expenditures not enumerated by Treasury in the Final Rule. Condition: The Office of the County Manager did not have adequate internal controls to ensure reporting requirements were met. For two of the quarterly reports selected, written justification for capital projects with expenditures exceeding $1 million was not maintained for all amounts that met the threshold in the reporting. In addition, the critical information reported did not have underlying support that tied to the reported amounts. Cause: The Office of the County Manager did not have adequate internal controls to ensure proper documentation was maintained for reporting requirements. Effect: Amounts reported to the Department of Treasury for capital expenditures may not have written justification or underlying support. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two out of four quarterly reports were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-006. Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure appropriate documentation to support reporting is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-005: U.S. Department of Treasury, Nevada Department of Business and Industry Housing Division, Health and Human Services Child and Family Services Division, Health and Human Services Aging and Disability Services Division, Health and Human Services Health Division, and Supreme Court of Nevada COVID-19, Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), 21.027 Reporting Material Weakness in Internal Control over Compliance and Material 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. Washoe County must submit quarterly Project and Expenditure Reports that contain CSLFRF costs incurred during the covered period to the Treasury Office of Inspector General. Critical information includes: 􀁸 Current period obligation 􀁸 Cumulative obligation 􀁸 Current period expenditure 􀁸 Cumulative expenditure 􀁸 Revenue loss calculation validation 􀁸 Capital expenditures – quantifiable objective criteria: The recipient has the required written justification in their grant file if the total of the capital expenditures costs in a project is greater than $1 million and less than $10 million; or, the recipient submitted the required justification to Treasury if (1) a project has total capital expenditures enumerated by Treasury in the Final Rule; or (2) the total of a projects capital expenditures costs is greater than $1 million for capital expenditures not enumerated by Treasury in the Final Rule. Condition: The Office of the County Manager did not have adequate internal controls to ensure reporting requirements were met. For two of the quarterly reports selected, written justification for capital projects with expenditures exceeding $1 million was not maintained for all amounts that met the threshold in the reporting. In addition, the critical information reported did not have underlying support that tied to the reported amounts. Cause: The Office of the County Manager did not have adequate internal controls to ensure proper documentation was maintained for reporting requirements. Effect: Amounts reported to the Department of Treasury for capital expenditures may not have written justification or underlying support. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two out of four quarterly reports were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-006. Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure appropriate documentation to support reporting is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-006: U.S. Department of Treasury COVID-19, Emergency Rental Assistance Program, 21.023 Eligibility Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 21.023 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards. Condition: For one month selected for testing, the Human Services Agency did not have documented internal controls over the determination of eligibility for participation in the Emergency Rental Assistance Program. Cause: The Human Services Agency did not have adequate internal controls to ensure documentation for review of the determination of eligibility of participants in the Emergency Rental Assistance Program. Effect: Participants could be deemed eligible that do not meet requirements. Questioned Costs: None. Context/Sampling: A nonstatistical sample of three months out of a population of 12 months were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-009. Recommendation: We recommend the Human Services Agency enhance internal control policies to ensure all documentation for review of eligibility determinations of program participants is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-006: U.S. Department of Treasury COVID-19, Emergency Rental Assistance Program, 21.023 Eligibility Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 21.023 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards. Condition: For one month selected for testing, the Human Services Agency did not have documented internal controls over the determination of eligibility for participation in the Emergency Rental Assistance Program. Cause: The Human Services Agency did not have adequate internal controls to ensure documentation for review of the determination of eligibility of participants in the Emergency Rental Assistance Program. Effect: Participants could be deemed eligible that do not meet requirements. Questioned Costs: None. Context/Sampling: A nonstatistical sample of three months out of a population of 12 months were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-009. Recommendation: We recommend the Human Services Agency enhance internal control policies to ensure all documentation for review of eligibility determinations of program participants is maintained. Views of Responsible Officials: Management agrees with the finding.

2024-007: U.S. Department of Treasury COVID-19, Emergency Rental Assistance Program, 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 21.023 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards. 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. Washoe County must submit quarterly ERA Compliance Reports that contain ERA 2 costs incurred during the covered period and households served during the covered period to Treasury Office of Inspector General. Critical information includes: • Administrative Costs Ratio – total obligations and/or expenditures for administrative costs does not exceed the relevant threshold of the total allocation (not to exceed 15% of ERA 2 across prime and all subrecipients). • Housing Stability Services Ratio – total obligations and/or expenditures for housing stability services is not greater than 10% of the total amount allocated. • System for Prioritizing Assistance – the number of households with less than 50% Area Median Income (AMI) receiving financial assistance is greater than the number of households with greater than 50% AMI receiving assistance. • Participants Households at Certain Income Levels Eligibility – Total households receiving assistance is not greater than the sum of AMI banded eligible households with 5 to 10% margin of error to avoid false positive for medium to large recipients. Condition: The Human Services Agency did not have internal controls established over the review of Quarterly Compliance Reports or to ensure that the reports were submitted timely. System for prioritizing assistance, participant households at certain income levels eligibility, and housing stability services ratio did not agree to underlying supporting records. The cumulative impact is as follows: ERA 2 Reporting Period Ended September 30, 2023 Report documentation did not have evidence of the reported amounts related to participant households so the system for prioritizing assistance and participants households at certain income levels eligibility was not able to be tested. In addition, report was not submitted on time and there was no evidence of review prior to submission. ERA 2 Reporting Period Ended December 31, 2023 Report documentation did not have evidence of the reported amounts related to participant households so the system for prioritizing assistance and participants households at certain income levels eligibility was not able to be tested. In addition, report was not submitted on time and there was no evidence of review prior to submission. ERA 2 Reporting Period Ended March 31, 2024 System for prioritizing assistance: households with less than 50% AMI was reported as 1,657 households, amount per supporting records is 1,195 households. Participants households at certain income levels: total households serviced was reported as 150 households, amount per supporting records is 91 households. In addition, report was not submitted on time and there was no evidence of review prior to submission. Cause: The Human Services Agency did not have internal controls established to ensure the Quarterly Compliance Reports agreed to internal supporting documents or that the reports were submitted timely. Effect: Inaccurate information was reported to the federal awarding agency and reports were not submitted timely. Questioned Costs: None. Context/Sampling: A nonstatistical sample of three Compliance Reports from a population of four were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-010. Recommendation: We recommend the Human Services Agency enhance internal controls to ensure quarterly Compliance Reports agree to underlying supporting documentation and evidence of the submitted reports is maintained and that reports are submitted timely. Views of Responsible Officials: Management agrees with the finding.

2024-007: U.S. Department of Treasury COVID-19, Emergency Rental Assistance Program, 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 21.023 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards. 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. Washoe County must submit quarterly ERA Compliance Reports that contain ERA 2 costs incurred during the covered period and households served during the covered period to Treasury Office of Inspector General. Critical information includes: • Administrative Costs Ratio – total obligations and/or expenditures for administrative costs does not exceed the relevant threshold of the total allocation (not to exceed 15% of ERA 2 across prime and all subrecipients). • Housing Stability Services Ratio – total obligations and/or expenditures for housing stability services is not greater than 10% of the total amount allocated. • System for Prioritizing Assistance – the number of households with less than 50% Area Median Income (AMI) receiving financial assistance is greater than the number of households with greater than 50% AMI receiving assistance. • Participants Households at Certain Income Levels Eligibility – Total households receiving assistance is not greater than the sum of AMI banded eligible households with 5 to 10% margin of error to avoid false positive for medium to large recipients. Condition: The Human Services Agency did not have internal controls established over the review of Quarterly Compliance Reports or to ensure that the reports were submitted timely. System for prioritizing assistance, participant households at certain income levels eligibility, and housing stability services ratio did not agree to underlying supporting records. The cumulative impact is as follows: ERA 2 Reporting Period Ended September 30, 2023 Report documentation did not have evidence of the reported amounts related to participant households so the system for prioritizing assistance and participants households at certain income levels eligibility was not able to be tested. In addition, report was not submitted on time and there was no evidence of review prior to submission. ERA 2 Reporting Period Ended December 31, 2023 Report documentation did not have evidence of the reported amounts related to participant households so the system for prioritizing assistance and participants households at certain income levels eligibility was not able to be tested. In addition, report was not submitted on time and there was no evidence of review prior to submission. ERA 2 Reporting Period Ended March 31, 2024 System for prioritizing assistance: households with less than 50% AMI was reported as 1,657 households, amount per supporting records is 1,195 households. Participants households at certain income levels: total households serviced was reported as 150 households, amount per supporting records is 91 households. In addition, report was not submitted on time and there was no evidence of review prior to submission. Cause: The Human Services Agency did not have internal controls established to ensure the Quarterly Compliance Reports agreed to internal supporting documents or that the reports were submitted timely. Effect: Inaccurate information was reported to the federal awarding agency and reports were not submitted timely. Questioned Costs: None. Context/Sampling: A nonstatistical sample of three Compliance Reports from a population of four were selected for testing. Repeat Finding from Prior Year(s): Yes, prior year finding 2023-010. Recommendation: We recommend the Human Services Agency enhance internal controls to ensure quarterly Compliance Reports agree to underlying supporting documentation and evidence of the submitted reports is maintained and that reports are submitted timely. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, 14.251 Special Tests and Provisions – Wage Rate Requirements Material Weakness in Internal Control over Compliance Grant Award Number: B-22-CP-NV-0629 Criteria: Title 29 Code of Federal Regulations Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction (Uniform Guidance) requires Washoe County to notify contractors and subcontractors of the requirements to comply with the Wage Rate Requirements and obtained copies of certified payrolls. Condition: No documentation was available to evidence review of timely Certified Payroll Report submissions. Cause: Washoe County did not have adequate internal controls to ensure routine review of Certified Payroll Report submissions. Effect: Certified Payroll Reports may not be submitted timely by the contractor or subcontractor. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 8 Certified Payroll Report submissions out of a population of 52 was selected for testing. No evidence of review over 8 Certified Payroll Reports submitted. Repeat Finding from Prior Year(s): No Recommendation: We recommend the County enhance internal controls to ensure Certified Payroll Reports are submitted timely. Views of Responsible Officials: Management agrees with the finding.

2024-011: U.S. Department of Housing and Urban Development Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, 14.251 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: B-22-CP-NV-0629 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.328 and 200.329 requires that performance and Federal financial reports are submitted to the Federal awarding agency in accordance with program requirements. Condition: During our audit testing of reporting, we noted that the required semiannual performance and Federal financial reports were not submitted during Washoe County’s fiscal year. Cause: Washoe County did not have adequate internal controls to ensure that the required performance and Federal financial reports were submitted. Effect: The required performance and Federal financial reports were not submitted in accordance with grant requirements. Questioned Costs: None. Context/Sampling: No performance or Federal financial reports were submitted during the fiscal year to sample for testing. Repeat Finding from Prior Year(s): No Recommendation: We recommend the County enhance internal controls to ensure performance and Federal financial reports are submitted in accordance with grant requirements. Views of Responsible Officials: Management agrees with the finding.

2023-004: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards under assistance listing 21.027 on the Schedule of Expenditures and 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) section 200.332 requires that: Pass-through entities must identify the dollar amount made available under each Federal award and the Assistance Listing Number at time of disbursement. Condition: The assistance listing number was not communicated to the subrecipient at the time of disbursement. Cause: The Office of the County Manager did not have adequate internal controls to ensure subrecipient monitoring requirements were followed. Effect: Noncompliance at the subrecipient level may occur and not be detected by the County. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 12 out of 60 subrecipient transactions were selected for testing. For all 12 transactions tested the assistance listing number was not communicated to the subrecipient at the time of disbursement. Repeat Finding from Prior Year(s): No Recommendation: We recommend the County Managers office enhance internal controls to ensure subrecipient monitoring requirements are followed. Views of Responsible Officials: Management agrees with the finding.

2023-005: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance and Noncompliance Grant Award Number: Affects grant awards under assistance listing 21.027 on the Schedule of Expenditures 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 contracts contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Executed contracts were not obtained from the vendor and certain contracts were not appropriately reviewed by management prior to entering into the agreement. Cause: The Washoe County Office of the County Manager did not have adequate internal controls to ensure contracts were properly executed and were reviewed prior to entering into the agreement. Effect: Contractors may not be aware of required terms and conditions. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 procurement transactions out of approximately 874 was selected for testing, including 15 contracts subject to Appendix II to Part 200. One contract was not fully executed by the vendor and two transactions were not appropriately reviewed prior to procuring goods or services. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure that contracts are fully executed and transactions are appropriately reviewed in accordance with County policies. Views of Responsible Officials: Management agrees with the finding.

2023-006: U.S. Department of Treasury COVID-19, Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), 21.027 Reporting Material Weakness in Internal Control over Compliance and Material 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. Washoe County must submit quarterly Project and Expenditure Reports that contain CSLFRF costs incurred during the covered period to the Treasury Office of Inspector General. Critical information includes: • Current period obligation • Cumulative obligation • Current period expenditure • Cumulative expenditure • Revenue loss calculation validation • Capital expenditures – quantifiable objective criteria: The recipient has the required written justification in their grant file if the total of the capital expenditures costs in a project is greater than $1 million and less than $10 million; or, the recipient submitted the required justification to Treasury if (1) a project has total capital expenditures enumerated by Treasury in the Final rule; or (2) the total of a projects capital expenditures costs is greater than $1 million for capital expenditures not enumerated by Treasury in the final rule. Condition: Written justification was not maintained for capital projects with expenditures that exceeded $1 million and amounts reported for cumulative obligations did not agree to underlying support. Cause: The Office of the County Manager did not have adequate internal controls to ensure proper documentation was maintained for reporting requirements. Effect: Amounts reported to the Department of Treasury for capital expenditures may not have written justification. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 2 out of 4 quarterly reports were selected for testing. For both quarters selected, written justification for capital projects with expenditures exceeding $1 million was not maintained. Cumulative obligations for reported for the period ended September 30, 2022 were under reported by $1,510,426. Cumulative obligations reported for the period ended March 31, 2023 were underreported by $178,671 and cumulative expenditures reported for the period ended March 31, 2023 were underreported by $27,735. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure appropriate documentation to support reporting is maintained. Views of Responsible Officials: Management agrees with the finding.

2023-007: U.S. Department of Treasury COVID -19, Coronavirus State and Local Fiscal Recovery Fund, 21.027 Other Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires Washoe County to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both total federal expenditures and payments to subrecipients for the year. Condition: Amounts were originally reported incorrectly on the SEFA. Cause: The Washoe County Comptroller’s Office did not have adequate internal controls to ensure payments to subrecipients were appropriately reported on the SEFA. Effect: Prior to correction, federal expenditures were overstated by $1,238,463 and amounts passed through to subrecipients were overstated by $269,766. Questioned Costs: None. Context/Sampling: No sampling was used; all program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Comptroller’s office enhance internal controls to ensure federal expenditures and payments to subrecipients are appropriately reported on the SEFA. Views of Responsible Officials: Management agrees with the finding.

2023-008: U.S. Department of Treasury COVID-19, Emergency Rental Assistance Program, 21.023 Allowable Activities, Allowable Costs, and Period of Performance Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 21.023 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards. Condition: The Office of the County Manager, did not have internal controls established over the direct payments made to participants of the Emergency Rental Assistance Program. Cause: The Office of the County Manager did not have an internal control policy to require segregation of duties in the preparation and review of payments made to participants in the Emergency Rental Assistance Program. Effect: Payments could be made to program participants for inaccurate amounts. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 60 payments to direct participants out of a population of 605 payments were selected for testing. For 21 payments made there was no documented internal controls over the payments made to participants in the Emergency Rental Assistance Program. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Office of the County Manager implement internal control policies to require segregation of duties in the preparation and review of payments to participants prior to disbursement. Views of Responsible Officials: Management agrees with the finding.

2023-009: U.S. Department of Treasury COVID-19, Emergency Rental Assistance Program, 21.023 Eligibility Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing number 21.023 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards. Condition: The Office of the County Manager, did not have internal controls established over the determination of eligibility of the participants in the Emergency Rental Assistance Program. Cause: The Office of the County Manager did not have an internal control policy to require segregation of duties in the preparation and review of the determination of eligibility of participants in the Emergency Rental Assistance Program. Effect: Participants could be deemed eligible that do not meet requirements. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 60 participants out of a population of 275 participants were selected for testing. For all 60 participants selected for testing, there was no documented internal controls over the determination of eligibility for participation in the Emergency Rental Assistance Program. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Office of the County Manager implement internal control policies to require segregation of duties in the preparation and review of eligibility determinations of program participants. Views of Responsible Officials: Management agrees with the finding.

2023-010: U.S. Department of Treasury COVID-19, Emergency Rental Assistance Program, 21.023 Reporting Significant Deficiency in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 21.023 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and terms and conditions of the federal awards. 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. Washoe County must submit quarterly ERA Compliance Reports that contain ERA 1 and ERA 2 costs incurred during the covered period and households served during the covered period to Treasury Office of Inspector General. Critical information includes: • Administrative Costs Ratio – total obligations and/or expenditures for administrative costs does not exceed the relevant threshold of the total allocation (10% across the prime and all subrecipients for ERA 1, not to exceed 15% of ERA 2 across prime and all subrecipients). • Housing Stability Services Ratio – total obligations and/or expenditures for housing stability services is not greater than 10% of the total amount allocated. • System for Prioritizing Assistance – the number of households with less than 50% Area Median Income (AMI) receiving financial assistance is greater than the number of households with greater than 50% AMI receiving assistance. • Participants Households at Certain Income Levels Eligibility – Total households receiving assistance is not greater than the sum of AMI banded eligible households with 5 to 10% margin of error to avoid false positive for medium to large recipients. Condition: Some expenditures reported did not agree to underlying supporting documentation. The Office of the County Manager did not have internal controls established over the review of Quarterly Compliance Reports. Cause: The Office of the County Manager did not have internal controls established to ensure the Quarterly Compliance Reports agreed to internal supporting documents. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: A nonstatistical sample of four Compliance Reports from a population of six was selected for testing. System for prioritizing assistance, participant households at certain income levels eligibility, and housing stability services ratio did not agree to underlying supporting records. The cumulative impact is as follows: ERA 2 Reporting Period Ended September 30, 2022 System for prioritizing assistance: households with less than 50% AMI was reported as 55 households, amount per supporting records is 47 households. Participants households at certain income levels: total households serviced was reported as 61 households, amount per supporting records is 51 households. Total obligations and/or expenditures for housing stability services was reported at $27,515, amount per supporting records is $0. ERA 2 Reporting Period Ended December 31, 2022 System for prioritizing assistance: households with less than 50% AMI was reported as 62 households, amount per supporting records is 30 households. Participants households at certain income levels: total households serviced was reported as 68 households, amount per supporting records is 35 households. Total obligations and/or expenditures for housing stability services was reported at $25,083, amount per supporting records is $0. ERA 1 Reporting Period Ended December 31, 2022 System for prioritizing assistance: households with less than 50% AMI was reported as 596 households, no supporting records were maintained for this amount. Participants households at certain income levels: total households serviced was reported as 725 households, no supporting records were maintained for this amount. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure quarter Compliance Reports agree to underlying supporting documentation. Views of Responsible Officials: Management agrees with the finding.

2023-011: U.S. Department of Health and Human Services Passed through State of Nevada Division of Child and Family Services Foster Care – Title IV-E, CFDA 93.658 Reporting Significant Deficiency in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 93.658 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. Washoe County must submit quarterly CB-496 reports that contain current expenditures and information on children assisted for the covered period. Critical information includes: • Part 1, Expenditures, Estimates and Caseload Data • Part 2, Prior Quarter Expenditure Adjustments • Part 3, Foster Care, Adoption Assistance and Guardianship Demonstrating Projects Condition: Some amounts reported did not agree to underlying supporting documentation. Cause: The Washoe County Human Services Agency (HSA) did not have adequate internal controls to ensure the amounts reported on the quarterly CB-496 reports agreed to underlying supporting records. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two Compliance Reports from a population of four was selected for testing. Average monthly child count did not agree to underlying supporting documentation. The cumulative impact is as follows: CB-496 for the Quarter ended September 30, 2022 Number of Children In-Placement: Title IV-E Maintenance Payments – Foster Family Home: amount reported as 282, amount supported by underlying records is 257. Repeat Finding from Prior Year(s): No Recommendation: We recommend HSA enhance internal controls to ensure the amounts reported agree to underlying supporting records. Views of Responsible Officials: Management agrees with the finding.

2023-012: U.S. Environmental Protection Agency Passed through State of Nevada Department of Conservation and Natural Resources Clean Water State Revolving Funds, 66.458 Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 66.458 on the Schedule of Expenditures 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 contracts contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. Condition: Contracts were missing required provisions per Appendix II to Part 200 for contracts under federal awards. Cause: The Washoe County Office of the County Manager did not have adequate internal controls to ensure contracts included required contract provisions. Effect: Contractors may not be aware of required terms and conditions. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 4 procurement transactions out of 4 was selected for testing, including 4 contracts subject to Appendix II to Part 200. All 4 contracts were missing certain required provisions from Appendix II to Part 200. Repeat Finding from Prior Year(s): No Recommendation: We recommend the Office of the County Manager enhance internal controls to ensure that contracts include all required contract provisions Views of Responsible Officials: Management agrees with the finding.

Finding 2022-001 U.S. Department of Treasury COVID-19 Emergency Rental Assistance, CFDA 21.023 Allowable Activities and Costs Significant Deficiency in Internal Control over Compliance Award Number(s) Affects grant awards ERA-001 under CFDA 21.023 on the Schedule of Expenditures of Federal Awards. Criteria The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition During our walkthroughs, we noted that there was not a formalized process/control to monitor the sub-recipient?s Reno Housing Authority activities and costs. Cause The Office of the County Manager did not have an adequate internal control to monitor the sub-recipient. Effect Inaccurate payment requests could be made to improper recipients without sufficient monitoring. Questioned costs None Repeat finding from prior year No Recommendation We recommend the Office of County Manager enhance internal control policies over sub-recipients. Views of Responsible Officials Internal controls will be monitored/created for future awards to the Reno Housing Authority Section II - Financial Statement Findings Required to be Reported in Accordance with Section III - Federal Award Findings and Questioned Costs C-

Finding 2021-003 U.S. Department of Health and Human Services Passed through Nevada Department of Health and Human Services Child and Family Services Division Foster Care - Title IV-E, CFDA 93.658 Allowable Activities and Costs Significant Deficiency in Internal Control over Compliance Award Number(s) Affects grant awards 2001 NVFOST and 2101 NVFOST included under CFDA 93.658 on the Schedule of Expenditures of Federal Awards. Criteria The 0MB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition During our testing of payments, we noted that a special 10% rate increase was correctly paid in August, but incorrectly excluded for October and December. Cause The Human Services Agency (HSA) did not have an adequate internal controls to approve the appropriate amount of payments. Effect Inaccurate payment requests are made. Context/Sampling A nonstatistical sample of 10 payments, totaling $26,527.30, out of a population of 4,726 charges, totaling $5,259,175.06, was selected for testing. Three payments the amount paid was inappropriate. Questioned costs None Repeat finding from prior year No Recommendation We recommend the HSA enhance internal control policies over the preparation and review of payment requests. Views of Responsible Officials Washoe County Human Services Agency Department will continue to work with management on creating and following internal controls to assist in the assurance of proper funding requests.

Finding 2021-004 U.S. Department of Health and Human Services Passed through Nevada Department of Health and Human Services Child and Family Services Division Foster Care - Title IV-E, CFDA 93.658 Allowable Activities and Costs Significant Deficiency in Internal Control over Compliance Award Number(s) Affects grant awards 2001NVFOST and 2101NVFOST included under CFDA 93.658 on the Schedule of Expenditures of Federal Awards. Criteria The 0MB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition During our testing of maintenance payments we noted that one payment was incorrectly calculated and one day was inappropriately not paid for a 14-day period. Cause The HSA did not have adequate internal controls to ensure payments to recipients are calculated appropriately. Effect Payments are calculated inappropriately. Context I Sampling A nonstatistical sample of 10 payments, totaling $26,527.30, out of a population of 4,726 charges, totaling $5,259,175.06, was selected for testing. For one payment the amount paid was inappropriate. Questioned costs None Repeat finding from prior year No Recommendation We recommend HSA enhance internal controls to ensure payments are calculated appropriately. Views of Responsible Officials Washoe County Human Services Agency Department will continue to work with management on creating and following internal controls to assist in the assurance of proper funding requests.

Finding 2021-005 U.S. Department of Health and Human Services Passed through Nevada Department of Health and Human Services Child and Family Services Division Crime Victims Assistance, CFDA 16.575 Reporting Deficiency in Internal Control over Compliance Award Number(s) Affects grant award 16575-19-126 included under CFDA 16.575 on the Schedule of Expenditures of Federal Awards. Criteria The 0MB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition During our testing of monthly reports we noted that one report was submitted after the reporting deadline of the 15th of the following month. Cause The Human Services Agency did not have adequate internal controls to ensure reports were submitted timely. Effect Reports were not submitted by the required reporting deadline. Context I Sampling A nonstatistical sample of 8 monthly reports out of a population of 81, was selected for testing from the District Attorney's Office and the Human Services Agency. Questioned costs None Repeat finding from prior year No Recommendation We recommend the Human Services Agency enhance internal controls to ensure reports are filed timely. Views of Responsible Officials Washoe County District Attorney's and Human Services Agency will continue to review and follow internal controls to assist in the assurance of timely reports.

2020-001: U.S. Department of Justice Passed through State of Nevada Division of Child and Family Services Crime Victim Assistance, CFDA 16.575 Cash Management Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects grant awards 16575-18-055, 16575-18-056, and 16575-18-057 included under CFDA 16.575 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: During our testing of reimbursement requests, we noted requests submitted by the Washoe County District Attorney?s Office (DA) were prepared and reviewed by the same person. Cause: The DA?s Office did not have an adequate internal control policy to require segregation of duties in the preparation and review of reimbursement requests. Effect: Inaccurate reimbursement requests may be prepared, which could lead to amounts received in error. Questioned Costs: None. Context/Sampling: A nonstatistical sample of three reimbursement requests out of a population of 36 was selected from the DA?s Office. None of the three requests were reviewed by an individual independent of the preparation. Repeat Finding from Prior Year(s): No Recommendation: We recommend the DA?s Office enhance internal control policies to require segregation of duties in the preparation and review of reimbursement requests. Views of Responsible Officials: Management agrees with the finding.

2020-002: U.S. Department of Justice Passed through State of Nevada Division of Child and Family Services Crime Victim Assistance, CFDA 16.575 Period of Performance Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects grant award 16575-18-058 included under CFDA 16.575 on the Schedule of Expenditures 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 that only allowable costs incurred during the period of performance may be charged to the federal award. The period of performance for grant 16575-18-058 was July 1, 2019 through June 30, 2020. In addition, costs used as local match, must be allowable. Condition: We noted retroactive shift differential pay from 2018 was paid in fiscal year 2020 and used as a source of local match. Cause: The Washoe County Human Services Agency (HSA) did not have adequate internal controls to ensure that retroactive pay earned prior to the period of performance was not used as a source of local match. Effect: Unallowable costs were used as a source of local match. Questioned Costs: Less than $25,000. Context/Sampling: A nonstatistical sample of 40 payroll related costs used as match, totaling $162,296, out of a population of 187, totaling $655,610, was selected for testing. Two instances of retroactive pay were identified, which totaled $1,089. Repeat Finding from Prior Year(s): No Recommendation: We recommend HSA enhance internal controls to ensure that retroactive pay earned prior to the period of performance is not used as a source of local match. Views of Responsible Officials: Management agrees with the finding.

2020-003: U.S. Department of Justice Passed through State of Nevada Division of Child and Family Services Crime Victim Assistance, CFDA 16.575 Procurement, Suspension and Debarment Material Noncompliance and Material Weakness in Internal Control over Compliance Grant Award Number: Affects grant awards 16575-18-055, 16575-18-056, and 16575-18-057 included under CFDA 16.575 on the Schedule of Expenditures 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. In addition, procurements must be carried out in a manner consistent with free and open competition. Moreover, entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. The entity may verify that a party is not suspended or debarred by checking the Excluded Parties List System, collecting a certification from the vendor or subrecipient, or adding a clause or condition to the covered transaction. Condition: During our testing of procurements made by the Washoe County District Attorney?s Office (DA), we noted certain professional services (i.e. counselors and therapists) were paid without a purchase order, contract, or other appropriate documentation to support the lack thereof. We were unable to determine if appropriate approvals and considerations had been made for competitive purchasing or the lack of competitive purchasing. In addition, suspension and debarment considerations were not documented. Cause: The DA?s Office did not have adequate document retention to support the history of professional service procurements or suspension and debarment in accordance with Washoe County?s purchasing policies. Effect: Noncompetitive purchases may be deemed improper and payments could be made to suspended or debarred parties. Questioned Costs: $58,424 were charged as direct costs. $34,826 were used as a source of local match. Context/Sampling: A nonstatistical sample of 18 procurement transactions, totaling $57,822 out of a population of 44, totaling $130,559 was originally selected for testing at the DA?s Office. We noted our exceptions with two vendors charged as direct costs, which represented $58,424 of the total population. In addition, the entire population used as local match was $34,826 and consisted of two other vendors that represented our exceptions. Suspension and debarment documentation was not available for any of the four vendors. Repeat Finding from Prior Year(s): No Recommendation: We recommend the DA?s Office enhance documentation to support the history of professional service procurements and suspension and debarment in accordance with Washoe County?s purchasing policies. Views of Responsible Officials: Management agrees with the finding.

2020-004: U.S. Department of Justice Passed through State of Nevada Division of Child and Family Services Crime Victim Assistance, CFDA 16.575 Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects grant awards 16575-18-055, 16575-18-056, 16575-18-057, and 16575-18-058 included under CFDA 16.575 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: During our testing of performance reports, we noted reports submitted by the Washoe County District Attorney?s Office (DA) and Washoe County Human Services Agency (HSA) were each prepared and reviewed by the same person. Cause: The DA?s Office and HSA did not have an internal control policy to require segregation of duties in the preparation and review of performance reports. Effect: Inaccurate performance reports may be prepared and submitted to the State of Nevada. Questioned Costs: None. Context/Sampling: A nonstatistical sample of one of four quarters for three of the grants administered by the DA?s Office and HSA was selected for testing. None of the performance reports submitted by the DA?s Office or HSA were reviewed by an individual independent from the preparation. Repeat Finding from Prior Year(s): No Recommendation: We recommend the DA?s Office and HSA implement internal control policies to require segregation of duties in the preparation and review of performance reports. Views of Responsible Officials: Management agrees with the finding.

2020-005: U.S. Department of Justice Passed through State of Nevada Division of Child and Family Services Crime Victim Assistance, CFDA 16.575 Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 16.575 on the Schedule of Expenditures 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 that reports submitted to the federal awarding agency (or pass-through entity) include all activity of the reporting period and are presented in accordance with program requirements. Condition: During our testing of performance reports submitted by the Washoe County District Attorney?s Office (DA), Human Services Agency (HSA), and Sheriff?s Office, we noted certain caseload and demographic information was reported inaccurately. Cause: The DA?s Office and HSA did not have an internal control policy to require segregation of duties in the preparation and review of performance reports. The Sheriff?s Office did not have adequate internal controls to ensure the data was accurate. Effect: Inaccurate performance reports were submitted to the State of Nevada. Questioned Costs: None. Context/Sampling: A nonstatistical sample of one of four quarters for 4 grants was selected for testing. We tested the data and noted the following errors: ? HSA (16575-17-054; Quarter 2): Q39 and Q56 were reported as 0 and should have been reported as 10 and 1, respectively. ? DA?s Office (16575-18-056; Quarter 2): Section C (Q86 ? Q94) and Section F (Q113 ? Q117) were not reported and should have been. ? DA?s Office (16575-18-057; Quarter 3): Q51, Q56, Q87, Q88, and Q91 were reported as 9, 0, 2, 0, and 0, respectively, and should have been reported as 6, 3, 3, 2, and 1, respectively. ? Sherriff?s Office (16575-18-059; Quarter 1): Q73 and Q91 were reported as 59 and 35, respectively, and should have been reported as 60 and 36, respectively. Repeat Finding from Prior Year(s): No Recommendation: We recommend the DA?s Office and HSA implement internal control policies to require segregation of duties in the preparation and review of performance reports. We recommend the Sheriff?s Office enhance internal controls to ensure the data is accurate. Views of Responsible Officials: Management agrees with the finding.

2020-006: U.S. Department of Health and Human Services Passed through State of Nevada Division of Welfare and Supportive Services Temporary Assistance for Needy Families, CFDA 93.558 Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 93.558 on the Schedule of Expenditures 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 costs to be adequately documented to be allowable under federal awards. Condition: A payroll charge was billed to the grant and it was not supported by the actual amount of payroll paid. Cause: The Washoe County Human Services Agency (HSA) did not have adequate internal controls to ensure payroll, after a pay-rate change, was billed to the grant appropriately. Effect: The grant was billed for charges that were not incurred. Questioned Costs: Less than $25,000. Context/Sampling: A nonstatistical sample of 35 payroll charges, totaling $104,992, out of a population of 214 payroll charges, totaling $630,174, was selected for testing. For one payroll charge tested, a pay rate change impacted how the payroll report produced its pay results. One week?s pay for one employee was double counted and resulted in $2,043 being billed to the grant in excess of what was actual. Repeat Finding from Prior Year(s): No Recommendation: We recommend HSA enhance internal controls to ensure payroll, after a pay-rate change, is billed to the grant appropriately. Views of Responsible Officials: Management agrees with the finding.

2020-007: U.S. Department of Health and Human Services Passed through State of Nevada Division of Child and Family Services Foster Care ? Title IV-E, CFDA 93.658 Adoption Assistance, CFDA 93.659 Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 93.658 and CFDA 93.659 on the Schedule of Expenditures 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) provides that a non-federal entity must claim federal financial participation for costs associated with a program only in accordance with its approved cost allocation plan. Since cost allocation plans are of a narrative nature, the federal government needs assurance that the cost allocation plan has been implemented as approved. In addition, for costs to be allowable, they must be adequately documented. Condition: Allocated costs did not agree to the underlying general ledger. Cause: The Washoe County Human Services Agency (HSA) did not have adequate internal controls to ensure the actual costs supported by the general ledger were included in the cost allocation appropriately. Effect: Cost allocation was not accurate. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two quarters of cost allocation was selected for testing. For the quarter ended September 30, 2019, expenses for other post-employment benefits, totaling $648,403, were excluded from the cost allocation entirely. For the quarter ended March 31, 2020, expenses for other post-employment benefits, totaling $120,542, and auto expenses, totaling $4,730, were overstated and were allocated. The net impact to Foster Care was an understatement in billings of $86,078. The net impact to Adoption Assistance was an understatement in billings of $12,555. Repeat Finding from Prior Year(s): No Recommendation: We recommend HSA enhance internal controls to ensure the actual costs supported by the general ledger are included in the cost allocation appropriately. Views of Responsible Officials: Management agrees with the finding.

2020-008: U.S. Department of Health and Human Services Passed through State of Nevada Division of Child and Family Services Foster Care ? Title IV-E, CFDA 93.658 Adoption Assistance, CFDA 93.659 Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 93.658 and CFDA 93.659 on the Schedule of Expenditures 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 that reports submitted to the federal awarding agency (or pass-through entity) include all activity of the reporting period and are presented in accordance with program requirements. Condition: Information was reported inaccurately. Cause: The Washoe County Human Services Agency (HSA) did not have adequate internal controls to ensure accurate reporting of caseload information and maintenance payments. Effect: Inaccurate information was submitted to the State of Nevada and costs were underclaimed. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two quarters of Title IV-E Programs Quarterly Financial Reports (CB-496) was selected for testing. In addition, the annual Adoption Savings Calculation and Accounting Report was selected for testing. Foster Care: Certain maintenance payments were not included in the total reported in the CB-496, which led to an underbilling of $31 in the quarter ended September 30, 2019 report and $14,316 in the quarter ended June 30, 2020 report. In addition, caseload information on line 48a was reported inaccurately as 400 and 384, rather than 397 and 363 for the September 30, 2019 and March 31, 2020 reports, respectively. Adoption Assistance: Caseload information on lines 53, 54, and 55 were reported inaccurately as follows: September 30, 2019 Report Line 53: Reported 1467 rather than 1469 Line 54: Reported 1615 rather than 1614 Line 55: Reported 16 rather than 11 March 31, 2020 Report Line 53: Reported 1512 rather than 1513 Line 54: Reported 1654 rather than 1652 In addition, the annual Adoption Savings Calculation and Accounting Report had incorrect caseload information reported as 1269 rather than 1365, which caused a variance in line 3(B) where 3,839 was reported rather than 3,769. Repeat Finding from Prior Year(s): Foster Care ? reported as prior year finding 2019-002. Adoption Assistance ? No. Recommendation: We recommend HSA enhance internal controls to ensure accurate reporting of caseload information and maintenance payments. Views of Responsible Officials: Management agrees with the finding.

2020-009: U.S. Department of Health and Human Services Passed through State of Nevada Division of Child and Family Services Adoption Assistance, CFDA 93.659 Cash Management Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 93.659 on the Schedule of Expenditures 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 non-federal entities to minimize the time elapsing between the transfer of Funds from the pass-through entity and disbursement by the non-federal entity. Advance payments to a non-federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements. Condition: Advance payments were requested for an extended period of time that was not in accordance with procedures established to minimize the time elapsing between receipt of funds and disbursement of funds. Cause: The Washoe County Human Services Agency (HSA) did not have adequate internal controls to provide for timely payment requests to ensure amounts requested were used for immediate cash needs only. Effect: Payments were received in advance of immediate cash needs. Questioned Costs: None. Context/Sampling: A nonstatistical sample of payment requests for two quarters was selected for testing (the estimated costs and final true-up for each quarter). Procedures in place, require monthly estimated requests with a final true-up performed after quarter end. We noted only one payment request to estimate costs was performed for the quarters ended September 30, 2020 and March 31, 2020 rather than monthly requests. One payment request was performed on August 22, 2019 for $1,987,773. The next request was prepared on January 8, 2020, which was the trueup for the first quarter. Another payment request was performed on January 28, 2020 for $1,305,740. The next request, in relation to the third quarter, was prepared on May 18, 2020. Repeat Finding from Prior Year(s): No. Recommendation: We recommend HSA enhance internal controls to provide for timely reimbursement requests to ensure amounts requested are for immediate cash needs only. Views of Responsible Officials: Management agrees with the finding.

2019-002: U.S. Department of Health and Human Services Passed through State of Nevada Division of Child and Family Services Foster Care ? Title IV-E, CFDA 93.658 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 93.658 on the Schedule of Expenditures of Federal Awards. Criteria: 2 CFR Part 200 (Uniform Guidance) requires that reports submitted to the Federal awarding agency (or pass-through entity) include all activity of the reporting period and are presented in accordance with program requirements. Condition: During our testing of Title IV-E Programs Quarterly Financial Reports (CB-496), we noted the number of children reported for Pre-Placement ? Title IV-E Funded Candidate Administrative Costs was reported using incorrect candidacy caseload information for the quarter ended September 30, 2018. Cause: Washoe County did not have adequate controls in place to provide for the review of CB-496 reports to ensure accurate reporting of information to the pass-through entity. Effect: Inaccurate information was reported to the pass-through entity. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two CB-496 reports out of four was selected for testing. Washoe County reported 68 children rather than 72 children on the quarter ended September 30, 2018 CB-496. Repeat Finding from Prior Year(s): No. Recommendation: We recommend Washoe County enhance controls in place to provide for the review of CB-496 reports to ensure accurate reporting to the pass-through entity. Views of Responsible Officials: Management agrees with the finding.

2019-003: U.S. Department of Homeland Security Passed through State of Nevada Department of Public Safety Disaster Grants ? Public Assistance, CFDA 97.036 Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects grant award WASHC30 included under CFDA 97.036 on the Schedule of Expenditures of Federal Awards. Criteria: 2 CFR Part 200 (Uniform Guidance) requires costs to be adequately documented. In addition, Uniform Guidance requires salary and wages to reasonably reflect the total activity for which the employee is compensated and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: Salaries (hourly rates) charged to the grant award did not agree to the underlying pay rate documentation. In addition, hours worked that were charged to the grant award did not agree to the underlying timecard. Cause: Washoe County did not have adequate controls in place to ensure payroll charges were accurately claimed. Effect: Salaries and benefits were charged to grant inaccurately. Questioned Costs: None, the errors resulted in a net understatement of payroll costs. Context/Sampling: A nonstatistical sample of 60 payroll transactions was selected for testing, 43 of which were applicable to grant award WASHC30. The WASHC30 payroll transactions sampled totaled $9,120. Of the WASHC30 payroll transactions, 42 of them did not reflect a pay raise and were understated on the claim. In addition, 17 hours were claimed rather than 10 hours for one transaction. The net result of these errors was an understated claim of approximately $37. Repeat Finding from Prior Year(s): Yes ? prior year finding 2018-004. Recommendation: We recommend Washoe County enhance controls to ensure payroll charges are accurately claimed. Views of Responsible Officials: Management agrees with the finding.

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