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From YouTube: 5/4/2022 - Legislative Commission's Audit Subcommittee
Description
This is the second meeting of the 2021-2022 Interim. Please see agenda for details. **TIME CHANGED**
For agenda and additional meeting information: https://www.leg.state.nv.us/App/Calendar/A/
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A
D
E
A
Here
and
miss
young,
if
you
would
note
that
we
do
have
miss
dickman
present,
she
is
on
zoom.
I
believe
she
might
have
just
had
some
trouble.
Unmuting
herself.
A
Please
note
that
all
members
are
present
and
we
have
a
quorum.
I
want
to
start
by
giving
a
special
thanks
to
all
the
state
agency
representatives
that
are
participating
in
the
meeting
today.
A
We
also
welcome
the
representatives
from
the
accounting
firms
that
are
in
attendance
today
as
part
of
agenda
item
number
five,
a
couple
of
important
housekeeping
items
before
we
begin
for
those
individuals
who
are
participating
on
zoom
for
members
and
presenters,
it's
important
to
note
that
the
chat
feature
is
only
to
be
used
for
communication
with
bps
for
technical
assistance,
questions
links
or
anything
should
not
be
provided
in
the
chat
that
should
be
made
available
on
the
record.
So
again,
chat
is
only
to
be
used
for
technical
assistance
with
bps.
A
A
For
your
information
under
agenda
item
number,
five,
the
awarding
of
the
contract
for
the
single
audit
accounting
firms
that
submitted
proposals
and
state
agency
representatives
will
have
an
opportunity
to
make
remarks
during
that
agenda
item,
and
that
is
when
the
committee
members
will
have
an
opportunity
to
ask
them
questions
with
this.
I
would
like
to
move
to
our
next
agenda
item,
which
is
public
comment.
I
will
first
start
by
welcoming
anybody
here
in
las
vegas
who
would
like
to
provide
public
comment.
A
C
C
It
is
not
an
option
for
anybody
to
influence
an
audit
or
change
in
opinion.
We're
just
not
able
to
do
that.
That
is.
That's
seriously
wrong,
it
would
be.
I
mean
it's
just
not
appropriate
that
committees
and
directors
and
other
parties
that
are
not
management.
C
I
entrust
the
process
and
I
know
that
you
will
make
the
good
decision
and
our
office
will
work
directly
with
the
auditors
you
choose
and
as
in
the
past,
we
will
provide
the
professional
services
that
are
required
so
that
the
auditors
do
obtain
their
sufficient
audit
evidence.
So
that's.
That
concludes
my
presentation
to
the
audit
committee
and
if
you
have
any
questions,
I'm
here.
A
A
Thank
you,
bps.
Okay,
I
would
like
to
remind
everyone.
There
will
be
a
second
period
for
public
comment
at
the
end
of
today's
meeting.
We
can
move
on
to
our
next
agenda.
Item
agenda.
Item
number
two:
three,
which
is
approval
of
the
minutes
for
the
meeting
on
march
22
2022.
members.
You
should
have
received
a
copy
of
those
meetings
via
email
and
with
the
hard
copy
that
was
mailed
to
you
as
well.
A
Okay,
seeing
none
all
those
in
favor,
please
signify
by
saying
aye
assemblywoman
dickman.
If
you
could
just
raise
your
hand,
motion
carry.
Oh
all,
those
opposed,
nay,
okay,
seeing
then
motion
carries
unanimously.
Thank
you,
okay
members.
I
would
like
to
let
you
know
and
those
who
are
listening
and
watching
that
we
will
be
taking
the
agenda
items
out
of
order.
I
would
like
to
start
with
agenda
item
number
five,
which
is
the
selection
of
the
company
for
the
single
single
wide
state
audit.
So
we
will
be
starting
with
agenda
item
number
five.
A
I'm
to
present
we
do
have
our
legislative
auditor
dan
crossman
here
in
las
vegas,
as
well
as
miss
tammy
getz
at
our
audit
supervisor,
and
shannon
rydell
chief
deputy
legislative
auditor
who
are
with
us
in
carson
city
once
the
audit
division
presents.
We
will
then
take
the
companies
in
alphabetical
order
today.
So,
mr,
mr,
how
are
you
going
to
be?
Thank
you.
G
Thank
you
chair.
I
appreciate
it
I'll
begin
by
just
providing
a
high
level
overview
for
the
members
of
the
subcommittee
of
the
process
and
then
turn
it
over
to
ms
getz.
G
The
state
of
nevada's
single
audit
is
an
audit
of
the
state's
financial
statements
and
federal
awards.
The
single
audit
is
important
to
provide
the
public
with
assurance
that
the
state's
financial
statements
are
presented
fairly
and
consistent
with
government
auditing
standards.
Additionally,
it
provides
assurances
that
the
state
is
following
federal
requirements
while
utilizing
the
federal
funds
within
the
state's
agencies.
The
audit
is
conducted
under
the
guidance
of
the
federal
office
of
management
and
business
businesses,
title
ii,
u.s
code
of
federal
rigs,
uniform
administrative
requirements,
cost
principles
and
audit
requirements
for
federal
awards
or
uniform
guidance.
G
The
state's
financial
statements
are
prepared
by
the
office
of
the
state
controller
and
are
included
in
the
state's
annual
comprehensive
financial
report.
The
auditor
issues
an
opinion
on
the
state's
compliance
with
internal
controls
over
financial
reporting
and
reports
on
material
weaknesses
or
non-compliance
with
federal
reporting
laws,
regulations,
contracts
or
grants.
Additionally,
the
auditor
reviews
the
state's
compliance
with
applicable
requirements
for
each
major
program
and
internal
controls
over
compliance,
in
accordance
with
uniform
guidance
for
purposes
of
familiarity,
we'll
refer
to
the
audit
as
the
statewide
single
audit
under
uniform
guidance
or
a
single
audit.
G
These
statutes
require
the
legislative
auditor
to
maintain
a
list
of
qualified
firms
that
are
willing
to
perform
the
single
audit
to
ensure
equal
opportunity
for
any
qualified,
firm
or
firms
to
participate.
In
the
single
audit,
we
obtain
a
listing
of
all
firms
registered
with
the
nevada
state
board
of
accountancy
and
invite
all
to
participate
in
the
rfp
process.
G
The
single
audit
report
is
required
by
law
to
ensure
the
state
continues
to
receive
federal
funds
in
fiscal
year.
2020,
the
amount
of
nevada's
expenditures
of
federal
funds
was
over
11
billion
dollars
in
most
states.
Legislative
auditors
have
the
pleasure
of
conducting
these
audits.
However,
in
nevada
the
single
audit
has
been
contracted
out
for
almost
three
decades.
G
G
F
Good
afternoon,
chair
members
of
the
audit
subcommittee
for
the
record,
my
name
is
tammy
goetz
audit
supervisor.
I
will
begin
by
providing
an
overview
of
the
request
for
proposal
process.
Our
process
for
identifying
qualified
firms
to
present
to
the
subcommittee
did
not
change
significantly
from
the
last
rfp
issued
in
2018
over
the
years.
The
audit
division
has
performed
research
on
contract
procurement
methods,
best
practices
and
identified
topics
relevant
to
the
single
audit.
We
have
solicited
and
reviewed
information
from
other
states
that
contract
for
all
or
a
portion
of
their
single
audit
services.
F
F
On
january,
the
10th
2022,
we
notified
all
772
registered
public
accounting
firms
of
the
rfp's
issuance
and
provided
them
a
link
to
the
rfp
which
was
available
on
the
lcb
website.
As
part
of
the
rfp
process.
We
accepted
written
questions
until
february
the
2nd
and
posted
on
the
website
all
questions
and
answers.
On
february,
the
7th
all
proposals
were
due
to
the
legislative
auditor
on
february
28th
the
rfp
required
that
firms
submit
two
proposals,
one
beginning
a
detailed
technical
proposal,
including
the
firm's
qualifications
and
descriptions
on
how
they
would
complete
the
audit.
F
F
The
technical
proposals
were
scored
in
four
weighted
areas
that
included
firm
qualifications
at
10
percent
staff
qualifications
at
25
percent,
governmental
auditing
experience
at
15
percent
and
technical
approach
at
20
percent
for
firm
qualifications.
This
area
is
an
evaluation
of
the
capabilities
of
the
firm,
including
its
knowledge
regarding
applicable
standards,
the
project
and
staffing
resources.
F
This
area
is
a
review
of
the
staff
assigned
to
the
project
in
the
proposal,
including
an
evaluation
of
staff
and
project
manager.
Experience
related
to
governmental,
auditing
training
received
by
staff
regarding
governmental,
accounting
and
auditing,
and
a
review
of
the
hours
stated
in
the
proposal,
including
the
proposed
allocation
of
hours
between
staff
and
management
for
governmental
auditing
experience.
F
The
review
includes
evaluating
the
firm's
experience
with
entities
similar
to
the
state
size
and
nature
of
other
governmental
engagements
and
experience
auditing,
annual
comprehensive
financial
reports
and
performing
compliance
engagements
and
under
technical
approach.
This
area
involves
a
review
of
the
firm's
descriptions
regarding
the
procedures
to
be
performed
time
frames
and
methods
necessary
to
perform
the
engagement
in
relation
to
the
rfp.
F
In
addition,
the
technical
approach
includes
an
evaluation
of
the
contractor's
understanding
of
certain
requirements,
including
conducting
exa
conferences,
obtaining
agency
responses
and
notifying
the
legislative
auditor
of
significant
events.
Our
technical
scores
were
calculated
and
finalized.
The
cost
proposals
were
opened
and
incorporated
into
the
overall
scores.
F
The
scoring
was
based
on
a
100
point
scale,
the
results
of
which
are
detailed
in
the
proposal.
Evaluation
summary
included
in
your
packet
under
tab
5
on
the
second
page,
the
proposal
evaluation
summary
shows
proposals
were
received
from
five
firms:
bdo,
usa
clifton,
larsen
allen,
crowe
id
bailey
and
moss
adams.
F
F
These
firms
demonstrated
sufficient
expertise
to
be
considered
qualified
to
perform
the
single
audit.
However,
based
on
the
proposal,
certain
firms
scored
higher
than
others.
The
evaluation
summary
shows
technical
proposals
were
reviewed
in
the
four
areas,
with
different
weights
applied
based
on
the
significance
of
the
area.
F
The
technical
evaluation,
the
staff's
qualifications
and
the
technical
approach
to
the
audit
had
the
most
weight.
Also
important
was
the
firm's
governmental
auditing
experience
and
its
capability
to
complete
the
single
audit.
The
cost
proposal
was
incorporated
at
25
of
the
overall
score
and
5
for
projected
audit
hours
based
on
our
technical
evaluations.
F
F
A
H
One
question
I
have
miss
gets
is
I
want
to
make
sure
that
I
heard
you
correctly
that
I
know
that
you
stated
that
you
sent
out
information
or
the
rfps
to
over
700
companies,
however,
that
there
were
only
five
proposals,
and
did
I
hear
you
say
that
that's
because
only
five
agencies
responded
with
a
proposal
and
not
that
this
was
you
just
evaluated
it
down
to
five?
Did
I
hear
that
correctly.
F
H
Follow-Up
chair,
that
seems,
like
a
very
small
amount
and
I
understand,
there's
a
lot
of
work
that
goes
into
it
and
it's
based
on
schedule
and
agency
capacity
and
everything,
but
did
was
there
any
concerns
with
that
to
only
receive
five
back
from
777,
or
is
that
pretty
typical
when
it
comes
to
this
line
of
work.
F
Assemblywoman
miller,
for
the
record,
this
is
tammy
getz
audit
supervisor.
There
is
a
limited
group
of
large
accounting
firms
that
are
interested
in
this
type
of
work.
It's
a
large
complex
project
requiring
staff
with
the
technical
expertise
in
state
financials
and
single
audit
compliance
work.
So
we
have
reached
out
to
as
many
firms
as
we
could
and
we
have
five
qualified
firms
proposing
to
perform
nevada
single
audit.
A
F
Chair
for
the
record,
this
is
tammy
getz
audit
supervisor.
Yes,
the
prior
year,
we
also
actually
2018
in
the
prior
contract.
We
also
received
five
proposals.
I
Thank
you.
So
I,
as
I
looked
at
these
one
of
the
questions
that
came
to
my
mind,
was:
did
we
change
any
requirements
this
time?
Is
there
any
like
additional
gatsby
requirements
or
other
things
that
we
have
that
we
have
changed
as
far
as
what
we've
done
in
the
past.
F
I
Well
and
the
reason
I
asked
that
question
is
because,
as
I
looked
at
the
different
proposals,
the
it
seemed
like
the
what
we've
paid
in
the
past
has
gone
up
significantly
and
especially
in
some
of
the
the
the
rfps,
and
so
I'm
just
wondering
if
something
has
changed,
that
would
cause
it
to
go
up
that
way.
F
C
Dennis
for
the
record,
this
is
shannon
rydell
and
the
chief
deputy
legislative
auditor.
So
over
the
past
few
cycles,
I
think
the
big
difference
is
the
number
of
programs
that
have
to
be
audited
in
the
single
audit.
I
think
you
know
eight
ten
years
ago
it
was
probably
more
like
12
or
13..
Now.
F
C
I
think
around
eight
to
ten
years
ago,
you
know
it
might
have
been
around
12
to
13
federal
programs
that
they
had
to
audit
every
year
and
now
it's
up
to
like
17
or
18
programs,
so
that
affects
the
cost
significantly.
C
I
Great
thank
you
and
if
I
could
just
have
an
additional
question
so
current
can:
how
long
have
we
had
the
current
auditor.
F
A
Okay,
thank
you
that
actually
leads
me
to
a
question,
but
I'm
going
to
check
with
our
other
members
assembly.
Member
dickman.
Do
you
have
any
questions?
No
senator
dennis
asked
my
question,
so
thank
you.
Okay,
thank
you.
Okay,
miss
gets
bear
with
me.
I
do
have
a
series
of
questions
that
I'd
like
to
ask
a
lot
of
them.
I
was
able
to
find
online,
but
I
still
want
to
make
sure
I
put
them
on
the
record.
Just
following
senator
dennis's
question.
A
You
had
mentioned
that
the
current
company
has
been
with
us
for
28
years.
Do
you
do
you
think,
and
it's
going
to
be
a
two-part
question,
but
do
you
think
it
would
anticipate
greater
hardship
to
our
state
agencies
or
to
the
state
to
change
the
company,
or
do
you
foresee
it
maybe
being
a
benefit
and
having
someone
fresh
to
come
in?
I'm
not
sure
if
you
can
answer
that,
but
I
mean
you
could
just
give
us
some
insight
into
what
you
think.
A
I'm
sitting
on
interim
finance
committee
sitting
on
the
ledge
commission,
chairing
congress
and
labor,
and
this
one
of
the
things
I
see
consistently
brought
up
in
all
of
our
committees
is
how
understaffed
all
of
our
state
agencies
are
it's
a
common.
It's
a
common,
just
answer
that
we
get
that
they
have
vacancies,
that
they
can't
build,
and
I
think
state
statewide
is
like
30
vacancies
or
32
vacancies
across
all
of
our
agencies,
and
so
I'm
trying
to
think
about
what
kind
of
hardship
having
a
new
company
come
in.
F
Chair
this
is
tammy
goetz
audit
supervisor
I'll
actually
break
that
down
into
a
couple
parts.
First,
you
know
for
state
agencies.
There
will
certainly
most
likely
be
an
impact
to
the
agency
staff
and
their
operations
during
the
first
few
years
of
the
contract,
as
the
new
auditors
are
gaining
an
understanding
of
the
agency
and
becoming
familiar
with
their
processes.
F
The
government
accountability
office
states
that
it
takes
two
to
three
years
or
more,
to
become
sufficiently
familiar
with
oddity's
operations
and
their
processes,
as
the
firms
are
required
to
work
with
various
agencies
of
the
state.
There
is
undoubtedly
a
lot
to
learn
and
understand
about
the
state,
its
operations
and
the
controls
surrounding
these
processes.
F
Now
going
into
taking
a
new
look
into
the
single
audit?
In
short,
that
is
a
very
hard
question
to
answer,
but
we
have
researched
that,
let's
start
with,
is
there
a
requirement
for
rotating
firms?
Our
review
of
various
sources
of
authoritative
accounting
guidance
has
shown
that
there
is
no
requirement
for
auditor
rotation
of
statewide
single
audits.
Further.
There
is
no
definitive
benefit
to
implementing
a
mandatory
rotation.
A
Yes,
thank
you,
and
that
brings
up
another
question.
Do
you
know
how
many
states
have
use
the
same
practice
where
they've
had
the
same
firm
for
at
least
a
few
decades?
Is
it
pretty
common
for
states
to
do
this.
F
A
F
Chair
this
is
tammy
getz
audit
supervisor
from
the
states
that
we
have
talked
to.
They
tend
to
stay,
sometimes
with
the
same
it
kind
of
varies
from
state
to
state.
Some
will
tend
to
stay.
Some
states
that
we
have
spoken
with.
They
do
have
a
policy
that
they
do
need
to
rotate
after
so
many
years.
So
it
again
it's
dependent
upon
the
state.
A
A
F
A
F
chair.
This
is
tammy
goetz
audit
supervisor.
It
may
or
may
not
go
over
that.
However,
I
believe
I
bailey's
here
today
and
might
be
able
to
give
you
a
more
definitive
answer
on
those
hours.
A
H
Thank
you
chair.
My
question
is
how
many
of
these?
How
how
many
of
the
firms
that
did
submit
a
proposal?
H
It
looks
like
from
what
I
can
tell
from
the
proposals
that
maybe
two
companies
are
actually
nevada-based
companies,
and
I
was
wondering
if
you
could
confirm
that
if
it
was
one
or
two
and
also
if
any
preference
in
your
scoring
mechanism
was
given
to
nevada-based
companies.
F
Assemblywoman
miller,
this
is
tammy,
guess
audit
supervisor,
none
of
the
five
firms
are
based
in
nevada.
However,
two
of
the
firms
do
have
offices
in
nevada
that
will
be
performing
the
single
audit.
H
A
Okay
and
assembly
member
miller,
I
believe
our
auditor,
mr
crossman,
can
answer
the
part
of
your
question
regarding
the
preference
on
the.
G
If
there
was
preference
for
the
record
dan
crossman
legislative
auditor
assemblywoman
miller,
we
we
did
not
have
a
specific
item
in
the
scoring
that
would
factor
in
a
preference
for
a
nevada-based
firm.
We
did
look
at
all
the
firms
and
their
ability
to
perform
the
work
from
their
location
and
did
provide
that
scoring
may
reflect
whether
or
not
they
had
that
their
amount
of
time.
They
were
planning
to
be
able
to
be
on
site.
G
I
Just
as
I
was
looking
through
these,
I
I'm
just
wondering
if
you
did
any
kind
of
comparison
on
the
partner
and
manager
hours
as
a
percentage
of
the
total.
F
Senator
dennis
this
is
tammy
goetz
audit
supervisor.
Yes,
this
was
incorporated
into
one
of
the
scoring
categories
in
the
proposal
scoring
process.
The
single
audit
is
a
complex
audit
with
many
moving
pieces,
as
nevada
has
grown.
Agency
programs
have
also
grown
with
an
increase
in
federal
funding,
resulting
in
additional
compliance
requirements.
F
Technical
expertise
in
these
federal
grant
programs
is
imperative.
So
principal
and
manager
involvement
is
important
to
ensure
less
experienced
staff
receive
sufficient
guidance
to
conduct
the
audit
in
an
efficient
manner.
Our
analysis
of
the
five
firms
showed
which
firms
committed
the
most
senior
staff
to
the
project
from
the
proposals.
Ike
bailey
anticipates
spending
46
percent
of
their
total
hours
using
principals
and
managers,
bdo
clifton,
larson
allen
and
moss
adams
indicated
around
30
percent
and
crow
stated
about
19
percent.
A
Okay-
and
I
do
have
one
last
question
for
you
too-
miss
gets
I'm
sorry
and
then
we
will
let
you
go,
but
I
had
a
question
regarding
the
evaluation
process.
You
guys
had
mentioned
that
when
you
guys
requested
the
you
put
out
the
rfp
and
people
submitted
it.
A
You,
you
requested
two
separate
rfps,
one
technical
proposal
that
would
it
was
emailed
and
then
the
second
was
the
cost
proposal
that
was
sent
in
a
sealed
envelope
that
you
guys
didn't
open
until
the
technical
proposal
was
completed
and
so
on
on
the
form
I
can
see
where
the
first
the
first
row,
the
technical
evaluation
was,
and
then
we
add
in
the
cost
proposal.
But
could
you
walk
us
through
why
you
do
that?
Why
you're
there
why
both
of
them
are
evaluated
separately?
A
F
This
is
tammy
goetz
audit
supervisor
and
yes,
that's
really
important
that
we
do
try
to
keep
our
evaluation
of
the
cost
proposal
separate
from
the
technical
and
we
all
the
four
individuals
within
the
audit
division.
They
review
the
proposals
independently
and
then
we
do
get
together
and
combine
those
scores,
and
at
that
point
that's
when
we
open
up
the
cost
proposals
all
of
us
together
and
then
score
the
cost
proposals
separately.
A
Okay,
thank
you,
mr
crossman.
Thank
you,
ms
getz,
and
thank
you,
ms
rydell,
for
being
here
with
us
and
for
that
introduction
and
presentation.
Thank
you,
okay
committee
members.
At
this
time,
we
will
now
hear
from
the
agencies
I'm
going
to
take
them
in
alphabetical
order,
so
I
will
be
starting
with
bdo
usa
first,
and
I
believe
we
have
chris
barthing
here
to
present
and
take
questions.
K
C
C
We
coupled
that
experience
with
the
resources
of
bdo
being
that
bdo
is
a
global
five
firm
with
experience
with
local
governments
and
large
large
governments,
both
in
advisory
roles
and
an
assurance
our
as
mentioned
in
our
proposal.
Some
of
our
background
and
client
lists
includes
the
us
virgin
islands
as
well
as
washington
dc.
C
K
K
Most
importantly,
in
recent
years
I
have
served
as
a
partner
and
a
director
on
several
of
our
large
government
clients
here
in
nevada,
including
washoe
county,
the
city
of
henderson
city
of
north
las
vegas,
and
involvement
in
the
city
of
reno.
I
also
serve
as
a
technical
reviewer
or
a
secondary
reviewer
on
several
other
large
government
clients
throughout
the
region
in
bdo.
K
Given
my
experience
with
that,
I
bring
a
lot
of
managerial
experience
on
large
projects,
multiple
teams
working
in
multiple
areas.
I
have
extensive
single
audit
experience,
a
large
number
of
single
audit
programs
on
each
of
those,
the
city
or
washoe
county.
We
had
six
major
programs
in
the
prior
year.
It's
a
lot
smaller
than
the
state
of
nevada,
but
it's
still
the
a
very
large
number
of
single
audits.
K
So
I
just
want
to
say
thank
you
for
your
time
and
consideration.
I
think
bdo
is
a
brings
a
lot
of
technical
expertise.
While
we
do
not
do
a
lot
of
state
audits.
Specifically,
we
do
audit
the
washington
dc,
like
ryan
mentioned,
and
the
virgin
islands,
so
we
have
access
to
those
teams
and
their
experience
on
large
state
audits.
So
thank
you
for
your
time
and
we're
happy
to
answer
any
questions
on
our
proposal.
A
E
E
It
was
mentioned
the
number
of
senior
staff
hours
that
would
be
necessary
to
do
this,
and-
and
I
imagine
what
was
put
down
in
proposal
was
what
your
estimation
is.
Of
course,
this
to
us
is
a
priority.
We
really
want
to
make
sure
this
is
done
done
done
in
a
timely
manner.
Done
right,
you,
you
mentioned
different
teams
that
are
available
to
perform
this
audit.
K
Thank
you
senator
hammond,
for
the
record
chris
farrell.
Yes,
we
would
bring
in
additional
resources
as
needed
at
all
levels.
So
if
the
project
goes
out
over
scope,
we
would
not
just
assign
junior
level
staff
to
complete
all
that
work.
It
would
be
additional
manager,
hours,
partner
and
director
hours
and
we
can
pull
from
within
the
region
to
the
extent
needed
if
we
can't
serve
the
capacity
within
the
state
of
nevada.
But
we
do
have
a
large
office
here
in
las
vegas
and
an
office
in
reno.
K
So
we
believe
we
could
staff
it
substantially
out
of
nevada
with
just
the
people
that
are
mentioned
in
the
proposal
that
are
from
other
offices,
including
one
audit
director
abby
hagerman
from
the
city
from
denver.
A
I
actually
want
to
follow
up
to
senator's
question:
was
that
cost
built
into
the
proposal
like
if
you
need
to
pull
in
additional
senior
and
management
levels
or
pull
in
from
your
dc
team,
or
would
that
be
at
an
additional
cost?.
K
I
As
I
look
at
the
your
bid,
it's
I'm
looking
at
the
cost
and
it's
you
came
in
at
like
really
high
and
I'm
just
trying
to
understand
you're
you're
30
of
is
for
management
and
partner,
but
I'm
trying
to
understand
what
what
are
the
extra
costs
that
cause
your
yours
to
be
that
much
higher.
K
Our
proposal
was
based
on
our
review
of
the
2020
annual
comprehensive
financial
report
and
our
discussions
with
multiple
engagement
teams
in
other
areas,
particularly
the
washington
dc
team
and
the
number
of
single
auto
programs.
They
do.
We
priced
it
based
on
the
number
of
programs,
as
well
as
the
just
number
of
major
funds
that
are
part
of
the
state
audit
and
we
went
through
and
prepared
a
detailed
budget
by
level
by
area
of
what
we
thought
it
would
take
and
that's
the
total
number
of
hours.
K
C
Dickman,
thank
you
so
much.
Madam
chair,
I
just
had
a
question
about
the
number
of
hours.
K
K
I
believe
it's
close
to
what
the
incumbent
was
spending
and
what
is
expected
for
the
2021
audit
slightly
higher
as
far
as
what
other
firms
think
they
are
or
believe
they
can
do
from
an
insufficiency
perspective
I'll.
Let
them
just
speak
to
that,
but
I
think
that's.
The
7300
is
a
reasonable
estimate
for
what
we
believe
it'll
take
to
get
in
there
and
actually
understand
the
state.
Do
the
audit
and
complete
equality
on
it.
L
A
Thank
you,
okay.
I
okay,
so
I
do
have
a
series
of
questions
and
they're,
probably
gonna,
be
the
same
questions
for
every
agency.
But
can
you
walk
me
through?
I
know
I
know
this
2021
single,
the
statewide
single
audit
hasn't
been
completed
yet
because
of
the
pandemic
and
other
issues
that
have
resulted
in
a
delay.
A
Did
you
take
that
into
account
and
if
there
is
delays,
did
you
guys?
It's
delays
that
come
up
was
that
something
that
was
taken
into
consideration
when
you
guys
were
coming
up
with
your
price,
and
would
there
be
any
additional
cost
if
there
are
delays
or
additional
information
that
you
do
not?
K
Vicki
chair
for
the
record
chris
farthing
bdo,
we
did
consider
the
timing
of
the
historical
audit
and
the
fact
that
it's
been
delayed
outside
of
the
normal
process
is
part
of
our
overall
pricing
and
our
hours
are
based
on
what
we
think
it
would
take.
Based
on
the
time
period
that
the
audit
has
occurred
in
over
the
past
several
years,
including
a
lot
of
time
in
november
december
january
february,
and
our
price
is,
as
we've
put
in
the
fee
proposal.
A
fixed
fee.
K
There's
nothing
that
I
can
see
right
now
now
if
there
were
extraordinary
unusual
circumstances,
for
instance,
a
number
of
major
programs
ballooned
well
beyond.
What's
in
there
or
something
of
that
nature,
or
there
was
a
complete
change
in
major
funds,
then
we
would
probably
approach
that
and
have
a
conversation
with
the
legislative
auditor,
but
there's
nothing
that
I
can
anticipate
at
this
point
in
time.
A
Okay,
thank
you,
and
I
know
I
was
this
assembly
member
miller
asked
one
of
my
questions,
but
this
was
something
that
was
going
to
ask
all
of
the
firms.
I
know
you
guys
are
located
here.
So
thank
you
for
for
starting
with
that,
but
I
know
you've
mentioned
you
have
done
other
single
state,
statewide
thing,
well
single
audits,
but
never
state
wide
single
audits.
Would
this
be
your
first
time
doing
a
entire
state?
Something
of
this
magnitude.
K
A
K
Thank
you
chair
chris
farrell.
Typically,
when
we're
doing
an
audit
of
this
nature,
our
time
on
site
would
be
somewhere
around
70
to
80
percent.
If
not
more
than
that,
we
try
to
be
on
site
as
much
as
possible
and
then
with
minimal
work,
planning
and
reporting
that
can
be
done
remotely
without
any
incremental
effort.
K
A
K
Thank
you,
chair
for
the
record
chris
farley
and
bdo.
One
of
the
first
steps
in
any
new
audit
engagement
as
part
of
the
client
acceptance
and
preparing
for
the
new
audit
is
that
you
review
the
predecessor,
auditor's
working
papers
and
that's
standard
practice
in
the
industry.
So
we
would
start
with
that
to
gain
an
understanding
of
what
has
been
done
historically
and
then
everything
else
would
just
be
around
scheduling,
meetings
and
walkthroughs,
with
heavy
participation
from
engagement
leadership
in
the
especially
in
the
early
in
the
first
year.
K
We
would
have
heavy
involvement
from
partners
and
managers
ensuring
that
the
right
questions
are
asked
and
that
the
answers
are
received
timely
and
appropriately,
and
we
avoid
additional
rework
and
going
back
to
the
client
multiple
times.
I
K
Thank
you
senator
for
the
record
chris
farling
bdo.
Yes,
we
have
experienced
turnover
it's
an
industry-wide
occurrence
right
now.
Every
firm,
I
believe,
as
far
as
I
know,
is
facing
a
turnover
it's
something
that
we
have
dealt
with.
Historically,
we
can
pull
resources
from
the
region
being
a
large
firm.
We
can
pull
resources
as
needed
and
we
just
attempt
to
manage
that
through
transition
plans
between
staff,
when
people
do
leave
great.
A
A
L
Thank
you
so
much,
madam
chair
and
members
of
the
subcommittee.
We
are
really
honored
and
and
feel
privileged
to
be
able
to
present
to
you
all
today.
My
name
is
allison
slife
and
I'm
a
principal
with
cla.
For
short,
is
our
firm
acronym
there
for
clifton
larsen
allen,
and
I
would
be
the
overall
engagement
leader
of
the
the
statewide
single
audit
and
also
lead
the
specific
work
over
the
federal
program
piece
of
that
I'll.
Let
paul
introduce
himself.
E
L
Great,
so,
to
talk
a
little
bit,
you
know,
certainly
we
want
to
introduce
cla
to
you
all
and
talk
about
what
we
bring
to
the
table
for
the
state
of
nevada,
but
also,
certainly
we
welcome
the
questions
from
the
committee
members
and
are
excited
to
address
any
concerns
or
or
items
you
might
have
from
our
proposal.
L
What
I
wanted
to
talk
about,
specifically,
is
what
you
know
differentiates
cla,
coming
here
to
the
state
of
nevada
is
that
we
are
the
top
ten
firm
and
the
number
one
provider
of
financial
audits
and
single
audits
of
any
state
across
the
country.
So
I
know
that
was
discussed
previously.
L
We
actually
audit
nine
of
the
13
states
that
are
contracted
out
for
the
statewide
single
audit,
and
so
you
know
why
does
that
matter?
What
does
that
mean
for
the
state
of
nevada
other
than
a
statistic?
We
really
think
that
that
shows
the
breadth
of
our
knowledge
of
states
and
state
entities.
L
What
states
are
you
know,
challenged
with
and
faced
with,
especially
with
the
impact
of
kovid
and
all
of
the
pandem
pandemic
impacts,
among
all
the
other
things
that
are
going
on
from
a
state
perspective
with
the
new
accounting
pronouncements
that
are
always
coming,
but
I
know
certainly
with
gasby
87
and
the
lease
impact.
It's
something
that
we've
been.
You
know
proactive
with
all
of
our
state
entities
for
years,
knowing
that
it's
been
coming,
it
was
delayed
with
the
pandemic,
and
now
it's
finally
here
so
really.
You
know.
Why
is
that
important
to
us?
L
L
If
you,
if
you
wanted
to
take
a
look
at
that
more,
but
you
know
we
understand,
every
state
is
different,
but
there's
certainly
some
nuances,
especially
as
it
relates
to
the
the
areas
of
nevada,
with
with
the
gaming
focus
that
are
similar
to
some
of
other
states
that
we
do
perform.
The
audits,
on
top
of
that,
we
also
perform
the
most
single
audits
across
any
firm
across
the
country
by
far,
and
we
do
have
a
table
within
our
proposal
of
that,
and
why
is
that
so
important
again?
L
The
single
audit
related
to
the
federal
programs
is
extremely
complex.
Ever-Changing.
I
think
it
was
talked
about
in
a
lot
of
the
opening
remarks
and
it's
it's
something
that
really
takes
a
special
set
of
skills
and
understanding.
The
team
that
we
propose
within
the
proposal
is
100
focused
within
the
state
and
local
government
industry.
It's
something
that
is
we're
passionate
about.
We
don't
work
on.
You
know
other
industries,
we
don't
work
in
other
services.
We
don't
do
taxes
on
the
side.
Things
like
that.
L
You
know
really
what
we're
focused
on
also
is
providing
an
efficient
audit,
an
effective
audit
meeting.
All
the
quality
standards
and
all
the
things
that
are
certainly
a
given,
if
you
will
from
an
audit
perspective,
but
we
want
to
be
more
than
just
an
auditor
to
you
all.
We
want
to
be
a
partner.
We
want
to
really
have
that
collaboration.
L
We
want
to
have
communication
with
members
across
all
the
state
agencies,
as
well
as
you
all
from
a
subcommittee
perspective,
to
really
understand
the
needs.
The
concerns,
the
questions
that
you
want
us
as
external
auditors
to
dive
into,
because
there's
a
lot
a
lot
to
be
had
during
that
kind
of
information
gathering
process
and
so
having
communication.
L
Two-Way
communication
with
members
of
the
audit
subcommittee
as
well
as
members
of
all
the
key
state
agencies,
is
something
that
we
feel
is
really
important
and
something
that
we
want
to
have
from
day,
one
that
we
do
have
a
proven.
You
know
track
record
if
you
will,
with
our
other
states
that
really
goes
a
long
way
and
so
from
a
cost
perspective,
we
do
know
it's
an
investment.
You
know
to
switch
to
another
accounting
firm,
but
we,
you
know
we're
we're
committed
to
that.
L
We
have
compared
to
our
other
statewide
single
audits
that
we
perform
and
feel
confident
in
the
numbers
that
we
did
propose
to
the
state.
The
last
comment
I
wanted
to
also
mention
is
just
from
a
industry
standpoint.
Like
I
mentioned
the
you
know,
we're
really
committed
to
the
government
industry
we're
involved
with
nasdaq.
We
are
a
sponsor,
we're
a
speaker
and
a
participant
if
you
will
from
a
larger
state
community
and
that's
something
that
we
really
value
and
bring
to
the
table
as
well.
Those
connections
that
we
have
across
the
country.
A
Thank
you
so
much
for
that.
I
am
going
to
go
to
the
members
first.
As
always
I'll
start
with
senator
dennis.
I
I
L
Yeah
no
great
question.
Thank
you
senator
you
know.
Really.
It
comes
from
the
experience
from
working
with
those
nine
other
states.
You
know
the
hours
are
an
estimate
based
on
the
facts
and
circumstances
that
we
know,
but
we
feel
confident
in
those
based
on
our
detailed.
L
You
know,
hours
estimate
by
level
by
area
based
on
that.
You
know
knowing
what
the
state
has
going
on,
knowing
that
the
2021
audit
results
are
not
public
yet
in
terms
of
you
know,
being
able
to
see
that,
but
based
on
all
the
facts
and
circumstances,
we
we
feel
confident
in
that,
and
I
will
say
also
somewhat
related
to.
L
Maybe
your
question
is
that
this
is
our
third
time
at
the
table
in
in
presenting
and
wanting
to
be
a
partner
to
the
state
of
nevada
and
over
those
years
over
those
cycles,
we've
really
tried
to
understand
the
state.
As
best
we
can.
We've
met
with
the
state
controller.
We've
talked
to
different
members.
You
know
outside
of
the
the
rfp
periods
over
the
the
many
years
that
that
has
passed,
and
so
we
feel
like
we've
gotten
a
good.
You
know
solid
foundation
from
the
start,
but
we
certainly
understand
year.
L
One
is
an
investment
on
both
sides
and
are
committed
to
that
and-
and
certainly
you
know,
welcome
any
follow-up
question
to
that.
L
No
similar,
I
mean
similar
to
the
previous
members
of
bdo.
You
know
we
certainly
do
have
turnover
and
are
not
immune
to
the
great
resignation,
as
talked
about
quite
a
bit.
I
think
maybe
a
difference
between
our
firm
and
other
firms
is
that
we
hire
directly
into
our
government
practice.
So
our
folks
are
working
with
governmental
clients
which,
in
terms
of
year
ends,
you
know
the
the
cyclical
nature.
If
you
will
is
a
bit
more
like
a
wave
versus
a
pekin
valley
that
a
lot
of
other
firms
have
with
tax
focus.
L
You
know
kind
of
right
in
the
january
through
april.
Is
you
know
crazy
hours?
I
think
something
that
helps
from
a
retention
standpoint
and
a
selling
standpoint
is
that
we
smooth
that
out
a
bit
based
on
our
client
loads,
and
so
we
feel
really
passionate
about
that
and
something
that's
that's
really
maybe
selling
point
if
you
will,
as
we're
hiring
and
retaining
our
folks
that
I
know
what
you
know
from
me,
starting
with
with
cla
many
years
ago,
was
a
great
great
aspect
to
that
process.
L
E
Thank
you,
madam
chair
same
question,
probably
that
I
gave
the
last
firm,
but
slightly
different.
You
have
some
experience.
You've
done
this
in
nine
other
states
any
chance
at
any
time
that
you've
actually
been
late
in
submitting
any
of
the
requirements
submitting
any
of
the
reports
on.
Were
you
late
at
all,
or
is
it
the
same
thing?
Where
is,
as
you
get
close
to
a
deadline,
you
commit
extra
resources
to
make
sure
you're
on
time.
L
Yeah
yeah,
no,
I
appreciate
the
question
and
you
know
certainly
things
happen
and-
and
we
understand
that,
but
I
think
from
day
one
setting
that
timeline
with
you
know
all
the
key
stakeholders
from
the
state
is
really
important
to
be
able
to
address
that
from
day
one.
We
know
that
there's
been
some
delays.
You
know
recently
for
the
state
of
nevada
and
and
builds
around
that,
and
I
will
mention
from
a
cost
standpoint.
L
We
have
not
changed
our
hourly
rate
estimate
at
all
to
address
that
you
know,
regardless
of
when
the
work
needs
to
go,
we're
committed
to
our
fee
and
in
our
cost
proposal.
So
we
understand
that
you
know
there's
a
lot
of
different
circumstances
that
happen,
but
that's
certainly
something
we'd
want
to
know
going
into
it
and
have
that
conversation.
But
we
have
you
know
over
400
folks
across
the
country
that
work
on
governments,
and
so
we
do
have
a
large
pool
of
resources.
L
A
Thank
you
and
okay
assembly
member
dickman.
Do
you
have
any
questions?
Okay
now
I
do
have
a
series
of
questions
and
they're
going
to
be
along
the
same
lines
as
the
questions
we
had
asked
video,
but
I
want
to.
I
just
want
to
touch
back
on
what
senator
dennis
had
mentioned.
So
your
your
proposal
came
in
with
5700
hours,
no
and
knowing
that
in
2020
it
was
over
6
300
and
knowing
the
delays
that
have
happened
in
2021
and
it's
probably
going
to
be
over
on
the
6300.
L
We
do
feel
confident
in
that
and
and
again
you
know,
we
we
we're
assuming
a
lot
of
things
going
into
that.
You
know,
based
on
all
the
facts
and
circumstances
that
we
know
at
this
point,
but
we
do
feel,
like
you
know,
from
being
a
national
firm,
we
have
a
lot
of
efficiencies.
We've
been
able
to
go
through
with
that
as
it
relates
to
you
know.
A
lot
of
times
where
time
is
spent
is
setting
up
testing
work
papers
and
researching
new
rules
and
new
guidance,
and
we
have
a
whole.
L
You
know
team,
if
you
will
behind
us
that
supports
us
from
a
technical
standpoint
and
so
we're
able
to
kind
of
go
right
to
the
source
if
you
will
out
of
folks
that
are
involved
with
with
gasby
with
the
government
accounting
standards
board
nasdaq.
I
mentioned
a
lot
of
key
players
from
a
federal
agency
perspective
and
I
think
that
can
sometimes
maybe
cut
down
on
some
of
that
additional
time
that
it
takes
to
research.
You
know
complex
situations,
so
we
do
feel
confident
in
that
and
and
understand
that
it
is
an
investment
all
around.
A
Okay-
and
you
know,
financial
resources
to
the
state
are
important,
so
I
just
want
to
make
sure
I'm
getting
this
right
now
on
the
record,
so
you
guys
have
taken
into
account
the
delays
and
an
extended
timeline,
possibly
and
have
worked
that
into
the
fixed
cost
and
you
don't
foresee
any
other
any
delays
or
anything
else
coming
up.
That
would
cause
you
to
come
and
request
more
funds
from
the
state
correct.
L
A
Okay,
now
I
do
have
some
other
questions
to
ask.
Now
you
had
mentioned
that
you
have
two
nevada
members
here:
do
you
guys
have
an
office
here
in
nevada?
Are
you
you
have
an
office?
How
many
nevadans
do
you
employ?
I
think
one
of
the
things
that
a
lot
of
my
colleagues
share
is
that
when
we're
using
nevada
dollars,
we
want
to
make
sure
we're
putting
nevadans
to
work.
So
how
many
nevadans
do
you
have
here
in
state
working
for
your
company?
You
want
to
speak
to
that
paul.
E
A
L
There
we
go
sorry
about
that
allison's
life
with
cla
for
the
record
again,
so
it's
myself
and
paul
is
the
lead
principals
on
the
engagement.
We
cert
currently
serve
the
state
of
kansas
and
that's
the
only
one
that
we
serve
from
a
statewide
perspective.
L
You
know
we
have
a
like
I
mentioned
over
400
folks
within
our
industry,
and
so
we
are
able
to
spread
that
out
if
you
will
from
serving
those
states,
but
I
will
say
maybe
to
add
on
to
that,
though
we
have
maybe
a
committee
or
a
group
that
we
all
talk
with
each
other.
If
you
will
that
work
on
the
statewide
audits
very
regularly
and
and
share,
you
know,
resources
situations
we're
seeing
conversations
we
have
with
any
of
the
feds
as
it
relates
to
complexities
or
things,
and
so
we
have
a
really
great.
A
L
Sure
excuse
me,
and
it
really
would
depend
on
on
what
the
needs
are
of
each
agency.
We
really
feel
it's
important
to
discuss
that
with
each
of
the
major
state
agencies
that
we
do.
Work
with
you
know
covet
has
changed
the
game
with
a
lot
of
that,
as
in
terms
of
what
needs
to
be
on
site
versus
offsite,
but
we're
committed
to
being
on
site,
and
I
think
from
some
of
the
rfp,
you
know,
questions
and
answers.
It
sounds
like
a
lot
of
the
state
agencies
would
prefer
maybe
additional
on-site
time.
L
You
know
post-covet
if
you
will,
and
so
we
are
committed
to
that
and
willing
to
bring
resources
to
meet
those
needs.
So
we
we
have
also
performed
full
statewide
single
audits,
completely
remotely
or
primarily
remotely
and
still,
meeting
timelines
and
deadlines
and
addressing
all
the
risks.
So
we've
we've
done
the
gamut.
If
you
will
to
see
kind
of
what
works
for
each
state.
A
Thank
you,
and
just
the
last
well
two
more
questions.
Just
the
same
question:
did
you
reach
out
to
any
of
our
state
agencies
to
get
information
or
answer
any
questions
that
you
guys
had
before
submitting
your
rfp.
L
A
Thank
you
and
just
my
last
question
again.
You've
heard
how
severely
impacted
we
are
with
staffing
amongst
state
agencies.
So
what
would
you
do
to
listen
lessen
the
impact
of
hiring
a
new
audit
company
to
come
in
and
do
the
audit
so
that
our
state
employees
aren't
overly
burdened
with
a
new
company?
No.
L
E
Yeah
a
great
question-
and
I
think
you
know,
as
I
just
mentioned
with
maryland
and
massachusetts,
those
are
both
new
entities
that
we
brought
on
during
covid
and
and
it's
just
that
that
knowledge
that
we
bring
to
the
table
and
not
having
to
train
the
auditors
from
the
state's
perspective
and
the
understanding
of
what
you
do
before
we're
asking
the
questions,
and
I
think
that's
really
important
as
we
as
we
bring
our
team
to
the
table
and
they
will
interact
with
your
team.
E
We
have
to
lessen
the
burden
of
your
of
your
stakeholders
and
your
and
your
staff,
so
that
has
been
our
game
plan
and
when
allison
alluded
to
as
our
team
kind
of
works
together.
And
so
if
we
see
issues
happening
around
the
other
states,
we
already
know
what's
going
on.
We
work
with
the
office
of
inspector
general
so
to
talk
about
some
of
the
federal
items
that
are
happening.
So
it's
not
like
we're
last
to
the
table
and
bringing
things
up
that
you
maybe
already
know
sometimes
we'll
bring
thought,
provoking
questions
or
things
that
are.
A
B
Good
afternoon,
chair
and
committee,
my
name
is
kathy
lime,
I'm
a
partner
with
crowe
and
my
I'm
also
serving
as
the
lead
state
and
local
government
audit
partner
for
our
practice
nationally.
It's
just
a
great
pleasure
to
be
here
on
behalf
of
the
firm
to
present
to
you
as
to
why
we
believe
crow
would
be
the
best
firm
suited
to
perform
audit
services.
I
had
a
chance
to
carefully
review
the
proposal.
Evaluation
summary
and
I
did
note
that
crow
was
in
the
top
three
of
recommended
firms
in
similar
fashion.
B
I
really
wanted
to
offer
you
the
top
three
reasons
why
selecting
crow
would
be
advantageous
to
the
to
the
state
and
certainly
in
the
best
interest
of
the
state.
First
and
foremost,
it's
our
deep
specialization
with
respect
to
state
and
local
governments,
as
well
as
specifically
into
nevada.
B
Currently
I
serve
as
the
auditor
for
many
large
nevada
governments,
including
clark
county
as
my
specific
client
city
of
las
vegas,
the
clark
county
department
of
aviation
or
the
harry
reid,
international
airport,
rtc
of
southern
nevada,
as
well
as
washoe,
county
and
colleagues
of
mine,
also
audit,
the
washoe
county,
unified
school
district
and
others.
So,
as
you
can
clearly
see
from
a
technical
perspective
and
a
governmental
auditing
perspective,
we
have
been
deeply
committed
to
auditing
nevada
governments.
B
I'd
be
remiss
if
I
didn't
say
that
we
were
also
recently
being
recommended
for
the
city
of
north
las
vegas,
as
was
previously
mentioned,
and
then
also
we
serve
as
the
current
auditor
for
the
legislative
council
bureau
as
well.
So
from
a
perspective
of
investment
into
nevada
governments.
I
believe
our
firm
has
displayed
that
when
you
couple
that,
with
respect
to
our
experience
on
the
state
level,
I
wanted
to
mention
a
few
calls
that
I
wanted
to
highlight.
B
So,
for
example,
I
have
personal
first-hand
experience
as
a
lead
engagement
partner
for
the
state
of
california
single
audit.
As
you
might
know,
the
state
of
california
single
audit
is
a
very
large
single
audit.
Their
scheduled
expenditures
of
federal
awards
includes
approximately
90
billion
dollars
of
federal
funds,
of
which
about
50
billion
of
that
was
medicaid
funding.
When
you
compare
and
contrast
that
to
the
state
of
nevada's
schedule
of
expenditures
of
federal
awards,
which
is
roughly
around
11
billion.
B
Clearly,
I
have
personal
first-hand
experience
of
leading
an
engagement
team
to
do
a
very
large
single
audit.
If
you
add
that
perspective
to
also
colleagues
of
mine
as
well
as
my
own
personal
experience,
I
also
serve
as
an
engagement
partner
for
the
in
state
of
indiana
state
board
of
accounts.
They
have
engaged
crowe
to
perform
a
portion
of
their
single
audit,
including
about
10
programs
or
so
and
from
what
I
understand
from
the
lead
partner,
we'll
be
engaged
for
future
additional
programs
over
time.
B
So
members
of
our
proposed
team
have
experience
on
the
state
of
indiana
state
board
of
accounts
as
well,
and
I'm
also
aware
of
lead.
Senior
managers
within
our
public
sector
practice
have
experience
being
the
lead,
senior
manager
for
the
state
of
delaware,
as
well
as
the
state
of
pennsylvania,
state
financial
statement
audits,
as
well
as
the
single
audits
as
well.
So,
as
you
can
tell
from
a
deep
specialization,
not
only
in
nevada
governments,
we
also
bring
some
national
calls
relative
to
state
and
local
governments.
B
B
Last
but
not
least-
and
I
think
this
is
very
important
to
consider
crow-
is
the
lowest
cost
responsible
bidder.
That's
here
today,
management
noted
in
their
evaluation
summary
today
that
technically
all
of
these
firms
are
qualified
to
perform
the
work
and
there's
certainly
nuances
relative
to
what
one
firm
can
bring
versus
the
other
and
crow.
If
you
compare,
the
scoring
from
a
cost
perspective
is
offering
1.4
million
lower
in
aggregate
fees
than
the
number
one
submitted
bid
and
an
incumbent
auditor.
B
We
were
very
intentional
with
respect
to
being
very
respectful
of
any
of
budgetary
constraints
during
this
really
difficult
and
uncertain
time.
During
the
proposal
process,
the
prior
fees
were
disclosed
for
fiscal
year
20
during
the
proposal.
Evaluation
summary,
I
did
note
that
the
prior
year
fees
for
2021
were
disclosed
at
about
642,
000
and
crow
was
very
respectful
of
that
and
intentionally
started
our
bid
at
640
dollars.
I
hope
you
carefully
consider
what
a
substantial
cost
savings
that
is
to
the
state,
especially
during
this
really
uncertain
time
relative
to
covet
and
otherwise.
B
Another
thing
to
point
out
is
that
when
we
took
into
consideration
over
a
four-year
period,
our
cpi
increases
were
only
limited
to
three
percent.
I'm
sure
many
of
you
have
seen
that
consumer
price
index
has
increased
substantially
to
about
seven
and
a
half
percent.
That
is
the
largest
increase
that
we
have
seen
since
1981
and
crow
has
shouldered
over
60
percent
of
that
cpi
increase
coupled
with
starting
with
the
lowest
responsible
cost
bid.
B
A
H
You
chair,
how
did
he
thank
you
for
that?
My
question
is
because
of
your
experience
already
working
with,
I
believe
you
named
aviation
clark
county,
possibly
north
las
vegas
lcb
when
it
comes
to
to
this
type
of
work
and
audit.
Do
you
find
that
to
be
a
challenge,
a
conflict
or
a
benefit
that
you
already
have
so
much
experience
and
and
prior
knowledge
with
so
much
as
so
many
municipalities
in
nevada,.
B
Thank
you
for
the
question.
Kathy
lie
with
crow
for
the
record,
absolutely
a
benefit.
I
mean
when
I
talk
about
these
nevada
governments.
These
are
the
very
stakeholders
that,
when
you
take
into
consideration
the
american
rescue
plan
act
and
the
state
local
fiscal
recovery
fund
and
the
number
of
funds
that
are
being
distributed
from
the
state
of
nevada
to
these
very
large
governments
like
clark
county,
like
city
of
las
vegas.
That
would
only
be
to
our
advantage
to
understanding
the
broader
perspective
of
not
just
the
state
but
all
of
the
respective
stakeholders.
H
Follow-Up
chair-
and
this
may
be
a
question
for
legal
again,
but
have
oh
well
not
for
legal.
I'm
sorry
for
audit
when
it
comes
to
again
the
the
factors
or
the
considerations
that
were
given.
G
For
the
record
dan
crossman,
we
did,
I
may
ask
ms
goetz
to
speak
directly
to
it,
but
we
did
call
for
every
one
of
the
firms.
We
called
a
number
of
their
references
and
just
and
discussed
this
with
them.
F
Assemblywoman
miller,
this
is
tammy
getz
audit
supervisor
for
the
record.
Yes,
for
all
five
firms
that
submitted
a
proposal,
we
called
a
couple
references
from
each
of
them
and
asked
multiple
questions
regarding
the
work
that
that
firm
had
done
for
them.
F
I
Thank
you
and
I'm
going
to
just
ask
all
my.
I
have
one
additional
one,
this
time
with
them
the
so
I
noticed
on
on
the
partner
manager
percentage
you're
at
19,
which
is
lower
than
everybody
else,
which
of
course,
then
you
also
address
the
issue
that
you
also
have
the
lowest
fee.
That
you're
you've
got
talk
a
little
bit
about
that,
because
I
mean
that's
like
I
mean
you
know
having
the
managers
and
everybody
looking
at
that.
That's
an
important
thing
so
is.
B
Yeah,
let
me
be
clear:
we
are
working
with
limited,
operate,
limited
information.
As
we
submit
these
bids,
I
will
commit
the
firm's
resources
at
the
highest
level,
both
at
the
partner
senior
manager
and
the
director
level,
likewise,
our
national
resources
to
complete
the
job
appropriately.
So
I
understand
that
that
might
be
lower
than
competitors.
B
The
other
thing
that
I
challenge
you
to
think
through
is
that
this
is
a
four-year
competitive
bid,
and
I
would
like
to
believe-
and
I'm
sure
my
competitors
would
agree
with
me,
where
we
are
as
of
today
for
fiscal
year
22,
and
what
we've
proposed
for
hours
should
not
be
where
we
should
be
in
fiscal
years,
23,
4
and
5..
I
would
hope
that
we
would
want
to
resume
a
sense
of
normalcy
and
relative
to
total
hours
during
the
rfp
process
and
the
q
a
process.
B
I
think
it's
important
for
the
committee
to
understand
that
what
was
disclosed
to
the
competitors
is
certainly
the
fiscal
year
20
hours
and
they
noted
that
those
were
remarkably
higher,
particularly
because
of
covid
and
remote
work,
and
then
they
also
disclosed
hours
for
fiscal
years.
18.
I'm
sorry!
For
fiscal
years
19
as
well
saying
that
that
was
pretty
consistent
with
prior
years
and
those
fiscal
year,
19
hours
were
4,
300,
4,
312
hours
to
be
precise,
and
so,
given
that
information
crowe
did
not
want
to
propose
and
arbitrarily
increase
our
bids
significantly
relative.
B
What
we
believe
is
going
to
be
maybe
one
year
of
enduring
another
difficult
pandemic
year,
looking
forward
to
another
three
or
four
years,
if
that
makes
sense,
but
you
know
getting
back
to
your
original
question
about
partner
manager
time.
Certainly,
we
would
size
up
with
respect
to
appropriate
staffing
so
that
we
get
to
the
right
answers
and
can
open
on
our
financial
statements
and
single
audit
report
appropriately.
I
Thank
you,
and
so
you
heard
me
ask
on
the
other
ones
about
the
turnover
or
not
kind
of
address
that
issue.
B
Yeah,
absolutely
the
great
resignation
is
very
peculiar,
I'm
sure
you're
understanding
that
and
feeling
that,
on
your
side,
there's
been
salary
offers
to
some
of
my
colleagues
at
a
very
young
staff
right
out
of
college.
You
know
at
a
certain
high
percentage
that
we've
seen
and
and
if
we're
seeing
it
on,
you
know
the
the
for-profit
side,
I'm
certainly
sure
that
you're,
seeing
that
on
the
government
side
as
well,
what
I
will
tell
you
that
is
this.
B
I
I
joined
crowe
six
years
ago
from
other
firms,
because
I
believed
in
our
core
values,
because
I
believed
in
care,
trust
and
stewardship
and
courage,
and
I
think
that
permeates
to
be
quite
honest.
It
really
sets
our
firm.
Apart
from
others.
We
have
certain
policies
and
procedures
relative
to
employee
engagement,
diversity,
equity
and
inclusion,
business
resource
groups
for
a
variety
of
different
infiniti
groups
that
I
think,
makes
crowe
an
employer
of
choice,
separate
and
distinct
from
other
firms
that
you
might
be
speaking
with
today.
B
And
so,
while
we
have
felt
that,
I
would
say
maybe
firm
wide,
I'm
pleased
to
report
in
the
public
sector
practice.
Our
turnover
is
far
less
than
the
firm
white
as
whole
as
a
whole,
so
that
seems
to
impact
our
public
sector,
our
state
and
local
government
clients
far
less
we're,
certainly
not
immune
to
it,
and
here's
what
I
can
offer
with
respect
to
that.
B
I
have
made
it
a
habit
relative
to
my
very
large
engagements
like
clark,
county,
vegas,
et
cetera,
and
otherwise,
where
we
double
up
relative
to
managers,
time
and
certain
leaders,
so
that
if
we
ever
run
into
the
unfortunate
circumstance
of
someone
leaving
the
firm
that
we
can
appropriately
have
proper
succession
planning.
So
I
hope
that
addresses
your
question.
I
A
All
my
questions,
okay,
appreciate
it.
Okay,
thank
you.
I
do
have
a
couple
of
questions
for
you
and
I'm
sure
you've
heard
them
asked
to
other
agencies,
but
I
do
want
to
start
because
this
was
a
big
topic
of
discussion
right
now.
The
the
proposed
costs
that
you
submitted,
as
well
as
the
hours
and
using
you,
know
fiscal
year,
2019
or
year
2019
hours,
but
sure
there
has
been
delays
in
2020
and
2021
because
of
the
pandemic,
and
we
probably
foresee
you
know,
delays
in
the
next
audit
right
I
mean.
A
B
No
based
on
the
information
that
I
have
as
of
today,
we
certainly
are
expecting
it
to
be
a
tough
year.
Obviously,
our
competitors
here
don't
have
the
added
advantage
of
seeing
the
fiscal
year
21
financial
statements
and
single
audit
reports,
so
we're
kind
of
operating
based
on
a
year
in
arrears
at
this
point,
but
it
certainly
has
informed
us
regarding
some
of
the
challenges
that
you've
been
having.
So
we
have
committed
to
a
not
to
exceed
fee,
as
noted
before,
and
it
being
very
respectful
of
budgetary
constraints
and
consistent
with
prior
years.
B
B
I
think,
through
the
question
and
answer
period,
some
firms,
including
myself,
had
asked
you
know:
may
we
submit
a
bid
acknowledging
a
baseline
number
of
major
programs
or
federal
grants
to
be
audited
in
detail,
for
example,
12
and
then
certainly,
if
there's
anything
in
excess
of
that,
we
could
discuss
and
mutually
agree
upon
fees.
You
know
based
on
appropriate
level
of
effort,
and
the
answer
to
that
was
no
in
the
q
a
and
I
thought
that
that
was
a
peculiar
procurement
practice.
B
To
be
quite
frank,
but
being
respectful
of
that,
we
did
have
discussions
with
firm
leadership
and
otherwise
we
did
analyze
the
number
of
major
programs
that
have
been
audited
from
fiscal
years,
18,
19,
20
and
21,
and
let
me
give
you
the
range
of
those
fiscal
year.
18
was
13
programs
19
17
fiscal
year,
20
there
were
15
and
then
now
fiscal
year
21
we
have
18
likely
because
of
the
pandemic
related
funding.
B
But
my
point
is
that
there's
a
very
large
range
knowing
that
it
was
a
large
range
and
the
highest
that
we
had
seen
the
previous
four
fiscal
years
being
18
my
firm
committed
to
our
fees
of
including
15
to
20
major
programs.
So
to
address
your
question,
we
would
not
be
coming
back
unless
it's
in
excess
of
20
and
we
truly
believe
that
is
more
than
fair,
given
that
the
state's
rfp
process
did
not
really
give
a
lot
of
comparability.
B
B
We
do
not,
I
hail
from
southern
nevada,
I'm
from
henderson
and
a
proud
grad
from
green
valley,
high
school
and
have
family
here,
and
it
is
my
personal
commitment
to
try
to
open
up
an
office
here
in
las
vegas,
as
you
can
see
from
the
laundry
list
of
very
large
governments
in
which
we
serve
and
got
a
great
love
for
the
state,
and
we
don't
have
one
now,
but
it's
certainly
a
personal
goal
of
mine.
Thank
you.
Okay
and.
B
Currently,
I
mentioned
the
state
of
indiana's
state
board
of
accounts
has
engaged
crow
to
perform
the
fiscal
year,
21
single
audit,
a
portion
of
major
programs,
my
understand,
as
well
as
financial
and
compliance
audits,
for
a
variety
of
different
governments.
The
way
the
state
of
indiana
is
structured
in
similar
fashion
to
nevada.
The
state
auditor
can
certainly
conduct
those
audits
or
they
can
outsource
a
portion
thereof,
and
so
the
state
of
indiana
right
now
is
our
current
single
audit
client.
B
We
have
separate
teams,
but
we
certainly
have
similar
to
some
of
my
other
competitors
here.
Colleagues
that
are
subject
matter
experts
and
would
be
available
to
our
team,
particularly
in
the
planning
phase,
particularly
in
relation
to
any
audit
findings
and
recommendations
that
pertain
to
compliance
and
otherwise
we
do.
B
It's
a
panel
of
15
members
from
across
the
country,
400
000
cpas,
and
I
know
some
of
my
colleagues
here
have
also
served
on
that.
But
I
we
would
be
able
to
offer
that
type
of
expertise
for
your
audit,
as
well
as
the
state
of
indiana.
A
Okay,
thank
you
and
then
just
to
confirm.
You
said
you.
You
had
worked
on
the
california
statewide
single
audit,
so.
B
Absolutely
I
was
one
of
the
lead
partners
on
that
and
in
in
particular
again
90
billion
dollars
in
federal
expenditures.
Medicaid
at
the
time
was
around
50
to
60
billion
dollars
of
that.
A
Okay,
thank
you,
and
did
you
contact
any
of
our
state
agencies
to
just
speak
with
them
answer
any
questions
that
you
had
before
submitting
your
rfp?
We.
B
Did
not
we
were
very
respectful
of
the
rfp
requirements,
although
I'd
be
remiss,
I
do
want
to
make
it
clear,
as
I
mentioned
before,
I
am
the
current
auditor
for
the
legislative
council
bureau,
and
so
we
were
very
careful
and
intentional
about
not
having
discussions
about
this
part
of
submitting
our
bid.
Okay,
thank
you
and
then.
B
Absolutely
I
think
I've
already
talked
about
you
know
relative
to
some
of
the
the
the
policies
and
procedures
and
culture
of
my
firm
that
I
think
inherently
helps
to
continuity
on
our
side
right
because
we
don't
want
continuity
to
be
an
issue
on
both
sides
of
the
fence.
But
I
do
understand
the
challenge.
You
know
I'm
going
to
offer
a
different
perspective
at
crow.
We
have
a
lot
of
different
proprietary
technologies
that
we
invest
in.
B
One
of
them
is
the
crow
secure
information
exchange
or,
for
short,
we
call
it
exchange
and
it's
our
primary
project
management
tool,
and
the
only
reason
why
I
raise
this
relative
how
to
how
to
lessen
burden
relative
to
the
agencies,
especially
with
so
much
turnover,
is
our
tool,
as
we
request
items
for
the
variety
of
different
audit
procedures
that
we
perform.
B
Our
tool
has
the
ability
to
contain
those
items
for
future
audit
periods,
and
so
say
your
audit
liaison
from
prior
year.
Isn't
there
the
not
the
next
year
then
whomever
is
taking
that
place,
will
have
access
to
that
and
that
helps
promote
succession
planning.
It
helps
promote
institutional
knowledge,
that's
not
lost,
and
so
we're
always
constantly
thinking
of
you
know
ways
to
incorporate
technology
to
help
with
real-world
world
problems
like
continuity
and
turnover
at
our
respective
clients,
and
we
have
found
that
they
have
thoroughly
enjoyed
that
and
it's
been
very
helpful
when
they
weren't
prepared.
A
A
C
Also,
a
partner
I'm
in
the
las
vegas
office,
and
I
have
been
performing
audits
for
28
years.
I
am
actually
the
engagement
partner
for
the
last
three
years
for
the
state
of
nevada,
audit
and
kurt
has
has
been
partnering
with
me
this
year
and
we
have
a
ton
of
government
experience
as
well.
I
pretty
much
all
the
the
clients
that
kathy
talked
about.
We
have
also
had
prior
experience,
along
with
probably
40
or
50
additional
nevada
governments.
J
Chair
and
committee
members,
thank
you
for
the
opportunity
to
speak
to
you
all
regarding
the
audit
of
the
state
of
nevada.
We
have
been
the
auditors,
as
previously
mentioned
for
almost
30
years,
and
the
state
remains
a
very
highly
valued
client
to
us.
I
feel
confident
that
our
proposal
illustrated
why
we
believe
I
bailey
remains
the
best
fit
and
the
best
business
partner
for
the
state.
However,
I
will
take
this
opportunity
to
highlight
some
of
our
firm's
strengths.
J
As
I
just
previously
stated,
we
have
been
the
auditors
of
the
state
for
almost
30
years.
The
last
couple
of
those
years
have
been
a
significant
challenge
for
all
the
reasons
that
the
members
have
already
heard,
so
I'm
not
going
to
dive
into
them
too
much.
However,
from
an
audit
perspective,
we
were
there
hand
in
hand
with
the
state
during
the
implementation
of
the
cares
act,
the
implementation
of
the
american
rescue
plan,
unemployment
insurance.
We
were
there
on
site
when
there
were.
J
You
know,
riots
almost
out
in
the
parking
lot
when
they
had
to
have
armed
escort
into
the
building.
We
were
there
hand
in
hand
with
the
state
working
through
that
sensitive
time
and
working
on
that
sensitive
project
medicaid.
During
the
pandemic,
we
were
there
auditing
the
state
fiduciary
activities,
which
was
a
new
gatsby
standard
that
came
into
play
and
was
implemented
during
the
pandemic.
We
were
there
and
assisted
with
the
state
and,
of
course,
all
the
other
recent
legislation
that
has
been
passed.
J
When
I
look
to
the
next
four
years
from
an
audit
perspective,
it's
not
going
to
get
any
easier
on
the
state.
It
really
isn't.
The
state
is
facing
continued
challenges
in
the
american
rescue
plan
and
the
spending
of
that
money.
The
obligating
of
that
money,
very
significant
lease
standards
on
both
tangible
and
intangible
leases.
What
that
means
is
the
governmental
accounting
community,
we're
reevaluating,
how
you
account
for
leases
both
whether
it's
land,
property
equipment
or
software
and
your
cloud-based
service
maintenance
arrangements?
J
We've
observed
it
and
we've
been
able
to
pivot
and
adjust
our
audit
procedures
to
adjust
for
it
when
we
go
in
for
an
entrance
conference
and
we
speak
with
management.
Typically
in
a
lot
of
times,
the
management
is
different.
By
the
time
we
get
there
on
the
audit
we've
been
able
to
pivot
and
audit
accordingly.
J
If
all
of
that
again
was
still
not
enough,
the
state
is
in
the
middle
of
implementing
a
new
statewide
accounting
system
during
the
contract
period.
The
implementation
of
a
new
accounting
system
is
a
significant
hurdle
to
both
internal
staff
and
external
auditors
alike.
However,
these
challenges
are
challenges
that
we
are
prepared
for.
J
J
What
does
this
say?
And
what
does
this
illustrate
about
us?
We
are
in
nevada
for
mountain
lot
in
elko
or
at
the
law
in
ely
for
ndot.
We
have
an
el.
We
have
an
office
in
elko,
ready
and
prepared
to
assist
which
they've
evidenced
because
they've
performed
the
inventory
observations
for
us.
In
the
past,
we
have
substantial
manager
and
partner
involvement
with
46
percent
of
our
hours
in
the
proposal
dedicated
and
that's
not
fake,
that's
based
on
historical
averages
and
what
we
know
it
takes
to
complete
the
job.
J
Our
managers
and
partners
are
on
site
the
majority
of
the
time,
almost
every
single
day
during
field
work.
What
this
commitment
means
is
that
there
are
multiple
managers
and
a
partner
working
directly
one-on-one
with
state
staff
and
our
own
audit
staff
to
take
care
of
issues
as
they
arise
and
they
are
complex
and
they
are
difficult.
J
We
take
our
role
as
the
state's
auditor
very
seriously,
not
only
because
it
is
our
job
as
cpas,
but
also
because
we
are
members
of
this
community.
We
live
here
in
nevada
and
we
work
to
ensure
audit
standards
and
federal
standards
are
adhered
to
to
protect
the
state
itself
from
harm,
but
also
to
ensure
accountability,
accountability
to
its
citizens
and
regulators
myself,
it's
not
just
nevada-centric.
I
do
also
consult
and
assist
four
other
states
on
matters
of
the
american
rescue
plan,
coronavirus
relief
fund,
their
small
business
assistance
programs.
J
The
state
of
massachusetts
is
one
of
them
where
I
assisted
in
helping
for
their
audit
prep
with
the
expected
challenges
that
the
next
four
years
will
bring
and
the
level
of
service
we
provide.
We
strongly
believe
we
are
the
right
choice
for
the
state
of
nevada.
Thank
you
for
your
time
and
considerations,
and
we
would
be
happy
to
answer
any
questions
that
the
chair
or
members
may
have.
A
J
Have
150
full-time
equivalents
on
a
given
year,
where
anywhere
around
30
staff
assisting
on
the
project
and
other
than
it
support
that
comes
from
across
the
country.
All
the
staff
that
are
performing
work
on
the
single
audit
on
the
financial
audit
other
than
our
quality
control
director
are
in
nevada.
A
Thank
you,
I'm
going
to
go
to
members
first
after
I
took
my
privilege
this
year.
I'll
start
with
senator
dennis.
I
Sure
you
and
you
addressed
most
of
these
already
the
ones
I've
been
asking.
You
know
the
the
percentage
of
partner
manager.
You
know,
obviously
that
number
is
really
high.
So
that
would
be
why
you
know,
perhaps
you
know
your
fees
are
higher
because
you're,
you
know
those
are
so
talk
a
little
bit
about
that.
I
mean
you
kind
of
covered
it,
but
any
additional
that
that
would
go
with
that.
J
We
have
a
lot
of
history
with
the
state
and
there's
there's
no
discounting
that
and
we've
looked
at
what
it's
taken
previously
to
work
through
the
complex
issues
at
the
state,
whether
it's
the
qualified
opinion
on
inventory
or
transactions
with
discretely
presented
component
units
or
unemployment,
insurance,
etc,
etc.
And
we
know
from
experience
that
it
takes
somewhere
between
40
to
50
percent
of
partner
and
manager,
engagement
in
the
job.
To
ensure
that
we
can
come
to
a
conclusion
to
assure
we
can
assist
the
state
in
any
implementation
questions
they
have.
J
It
takes
that
level
of
effort
from
the
management
team
on
the
job
we
built
that
in
we
bifurcated
and
created
a
a
detailed
budget
about
what
that
looks
like.
And
yes,
our
fees
from
an
hourly
perspective
are
close
to
some
of
our
competitors
and
higher
than
some
of
our
others,
but
that's
to
reflect
the
partner
and
manager
and
level
of
engagement
that
it
takes
for
this
job.
I
Okay-
and
there
was
something
that
came
up
on
the
other
one-
that
I
wanted
to
ask.
Oh
what
what's
your
opinion
on
the
the
issue
that
the
2020
hours
were
higher
than
normal
and
is
your
opinion
that
those
are
gonna
continue?
Higher
they're
gonna
come
down.
J
J
Speaking
with
the
controller's
office,
there's
an
estimated
of
over
a
thousand
leases
that
have
to
be
reevaluated
if
you
think
of
a
thousand
leases,
if
you
only
spend
30
minutes
at
least
that's
at
least
500
hours,
and
so
when
we
take
a
look
at
that,
coupled
with
where
we've
been
coupled
with
the
fatigue
that
we
see
at
the
state
agencies
and
the
turnover
close
to
30
percent,
we
just
don't
see
that
decreasing
in
the
near
term.
Then
we
add
the
state
wide
accounting
system
in
year.
Three
that
is
really
not
to
be
understated.
J
A
statewide
accounting
system
has
such
a
profound
impact
on
both
internal
staff
and
auditors.
They're
talking
about
non-parallel
implementation,
where
they're
going
to
have
to
get
audit
documents
out
of
one
system
when
they're
still
using
a
new
one,
that
type
of
of
auditing
and
requirements
is,
is
hugely
significant
impactful,
and
so
we
don't
anticipate
the
hours
reducing
below
6000
during
the
contract
period.
Okay,.
A
E
Sure,
thank
you,
madam
chair.
You
know
you've
heard
my
question
in
the
past.
You
know
it's
always
about
making
sure
that
things
are
timely.
We
have
a
lot
riding
on
what
we
do
here
and
I
want
to
make
sure
that
every
firm
is
committed
to
allocating
the
resources
when
necessary
to
make
sure
it
gets
over
the
deadline
even
even
or
gets
there
on
dead
down
deadline
day,
regardless
of
of
what
it
may
cost
you
and
just
want
to
make
sure
I
get
the
same
confirmation
from
you
all.
J
J
That
being
said,
and
I'll
be
honest,
we're
at
the
mercy
sometimes
of
responses
from
state
agencies
and
those
significant
transactions
and
how
complex
they
are
and
how
long
they
take
to
work
through
and
to
bring
up
where
the
current
year
audit
is
we're
still
waiting
on
information
from
the
state
controller's
office.
So
it's
really
hard
for
us
to
audit
it
if
we
don't
have
it
yet
and
so
we're
at
the
mercy
of
waiting
on
that
information
to
be
able
to
audit
it.
J
However,
I
will
say
during
field
work
and
and
during
the
hot
and
heavy
scheduled
time
we're
on
site
every
day,
working
significant
over
time
with
as
much
resources
as
the
state
can
handle
to
be
able
to
answer
questions.
We
can
put
10
auditors
in
a
room,
but
when
there's
only
three
or
four
staff
to
be
able
to
respond
to
questions,
they
have
a
hard
time
responding
to
10
questions.
J
A
2020
audit
was
the
6363
I'm
assuming
that
was
higher
than
what
had
been
proposed.
Do
you
know
what
had
been
proposed.
J
J
If
you
look
at
the
fiscal
year,
22
rate
per
hour,
it's
154
dollars
per
hour,
so
our
increase
in
fees
and
yes,
there
was
642
and
now
we're
at
950
for
the
next
year.
That
increase
is
directly
proportional
to
the
increase
in
hours
and
time
and
effort
that
it
took.
Also
speaking
to
that,
we
had
discussions
with
the
legislative
auditor
about
a
potential
change
order
in
during
the
pandemic,
which
we
decided
not
to
pursue.
We
did
not
come
back
for
over
2
000
hours
in
contract
overages
in
2020
or
in
2021.
J
A
A
Do
you
know
what
the
expected
hours
for
2021
will
be?
Do
you
know
when
we
can
expect
the
audit
to
be
complete
and
how
many
hours.
J
A
J
Coach
schlicker
I'd
bailey
for
the
record
during
the
single
audit,
our
direction
to
managers
and
staff
and
myself
is
to
go
out
on
site
for
every
single
single
audit
program.
As
long
as
the
agency
doesn't
request
that
we
not
be
there,
and
that
happened
a
couple
of
times
during
the
pandemic
because
they
didn't
feel
comfortable.
However,
other
than
that
specific
request
we're
on
site
at
every
single
state
agency
that
we're
auditing,
okay,.
A
Thank
you
and
what
have
you
done
like?
What
have
you
over
the
last
couple
years
to
make
it
easier
to
perform
the
audits
to
make
it
easier
for
our
state
agencies,
because
again
you're
aware
you're
in
there
that
we
are
experiencing
extreme
vacancies?
And
so
it's
difficult
for
our
state
agencies?
Sometimes
to
get
you
the
information
that
you
need
and
so
have
you
guys
taken
any
measures
to
make
the
audits
easier
for
our
state
agencies
so
they're,
not
so
that
they're
not
more
overwhelmed?
Yes,.
J
Kurt
schlicker,
I
bailey
for
the
record.
We
have
an
entrance
conference
with
every
single
state
agency.
We
provide
a
document
list,
a
request
list
up
front.
We
mirror
that
and
keep
it
very
similar
in
nature
from
year
after
year.
We
also
provide
examples
of
what
the
prior
year
support
was
because
there
is
a
lot
of
turnover
and
they
don't
necessarily
know
what
every
report
is
or
what
every
supporting
document
that
we're
looking
for.
So
we
have
an
entrance
conference.
J
We
discuss
that
face
to
face
if
we
can
or
remotely,
if,
if
they're
asking
for
that,
but
we
have
that
every
single
year
we
also
have
our
online
tools
similar
to
our
competitors.
That
documents
are
uploaded
and
maintained
on
a
yearly
basis,
and-
and
we
can
see
that
every
year
we
also
re-engineer
the
audit
almost
every
summer,
where
we
come
back
internally
and
analyze.
What
could
we
do
better?
What
what
things
were
a
struggle?
Where
can
we
improve?
J
How
can
we
ask
for
this
a
better
way,
because
you
know
maybe
we
put
in
a
request,
the
department
of
taxation
and
it
took
a
month
to
respond
because
they
didn't
understand.
So
how
can
we
phrase
it?
How
can
we
ask
for
it
differently?
We
take
that
re-engineering
process
seriously
and
we
do
it
every
summer.
A
J
Kurt
schlicker
with
I
bailey
for
the
record,
so
we
perform
the
state
of
nevada.
We
perform
pockets
of
other
state
single
audits
because,
quite
frankly,
as
mentioned,
there's
only
13
that
are
contracted
out.
So
we
do
various
programs
here
there.
We
don't
do
any
full
statewide
single
audits,
because
there's
just
not
that
many
of
them.
However,
I
like
I
mentioned
earlier,
I
do
consult
and
assist
for
other
states
with
their
american
rescue
plan,
their
coronavirus
relief
fund
karazaki,
seeing
a
lot
of
and
matters
of
that
nature.
A
A
And
then
just
my
last
question
to
you
just
because
you're
again,
your
your
manager,
participation
was
higher
than
others,
and
I
mean
having
been
with
nevada
that
long
30
years
you
still
and
I'm
assuming
that's
a
little
bit
of
what
increases
the
cost
as
well.
But
you've
been
in
nevada
for
28
30
years,
and
do
you
still
feel
that
that
level
of
manager
participation
is
necessary?.
J
Kurt
schlicker
I
bailey
for
the
record,
I
very
much
so.
In
fact,
I
think
the
level
of
partner
and
manager
involvement
has
increased
over
the
years.
Auditing
standards
have
gotten
more
complex.
Over
the
last
few
years,
we've
had
gasby
68,
which
doesn't
mean
a
whole
lot
to
you,
but
pension
standards
have
changed.
Post
retirement,
health
standards
have
changed,
fiduciary
activities
have
changed.
Where
now
we
have
to
audit
the
income
statement
of
the
inmate
accounts
for
the
department
of
corrections,
standards
have
changed,
federal
standards
have
changed
and
become
more
complex
turnover
has
increased
at
the
state.
A
Okay-
and
I
actually
have
one
last
question,
because
I
you
mentioned
this-
and
I
don't
think
this
was
a
question-
we
asked
the
other
agencies,
but
we
are
going
through
a
financial
management
system
change,
which
is
it's
going
to
be
huge
right?
Have
you
you
guys
have
been
with
us
so
long?
Is
this
the
first
time
that
you've
experienced
an
accounting
system
change
in
our
state
or
have
you
gone
through
one
before.
J
J
You
know
added
on
top
of
the
core
accounting
system,
but
this
is
a
universal
switch
out
of
the
system
and
you're
implementing
an
entirely
new
erp
system.
We've
we've
done
that
with
other
clients
and
and
worked
through
that
process.
A
Okay,
thank
you
members.
Let's
call,
oh
thank
you
so
much
for
being
here.
Thank
you.
I
believe
we'd
still
have
miss
getz
and
miss
rydell
at
the
table,
so
I'm
so
glad
you're
there.
We
do
have
some
additional
questions
from
you
from
our
members.
So
if
you
don't
mind,
I'm
gonna
go
for
round
two
of
questions
to
our
audit
team.
I
believe,
ms
miller,
did
you
have
a
question,
or
was
it
just
senator
dennis
senator
dennis.
I
F
Senator
dennis
this
is
tammy
goetz
audit
supervisor
for
the
last
couple
years,
as
I
bailey
had
indicated,
the
hours
had
increased
a
couple
thousand
hours
due
to
the
pandemic
and
certain
federal
programs,
additional
programs
and
additional
compliance
requirements,
and
they
do
anticipate
with
the
leases
that
we've
previously
mentioned.
That
will
add
additional
hours.
So
for
the
next
four
years.
I
think
we
still
are
going
to
see
above
the
4
000
that
we
had
in
2019.
I
Okay,
thank
you
and
then
in
the
the
ranking
process
did
you
did
we
look
at
anything
related
to
staffing
and
and
diversity
within
the
staff
of
any
of
the
firms.
F
Senator
dennis
this
is
tammy
getz
audit
supervisor.
During
our
scoring
process,
we
don't
have
a
specific
scoring
item
where
we
look
at
diversity
per
se.
We
do
base
our
technical
scoring
on
the
technical
expertise
of
the
staff
that
will
be
performing
the
project.
However,
all
of
the
five
accounting
firms
in
their
proposals,
they
did
discuss
diversity
and
how
they
handle
that,
within
the
firm.
A
Okay,
thank
you,
members
and
thank
you
agencies
for
being
here
and
indulging
us
well.
Judging
all
our
questions,
any
additional
comments
from
the
members
or.
A
A
Welcome
back
members,
we
are
out
of
recess
and
back
in
committee
and
again
I
want
to
thank
all
of
the
agencies
for
being
here.
I
know
that
you've
spent
many
hours,
not
just
on
the
proposal
that
you
submitted
to
our
state,
but
also
in
preparing
for
this
meeting
and
coming
before
this
committee
and
answering
all
of
the
questions.
So
I
want
to
thank
you
for
your
interest
in
nevada
and
your
willingness
to
be
here
and
be
a
partner
with
our
state.
A
This
was
a
difficult
decision
to
make
because
the
scoring
was
so
close,
but
in
the
end
I
think
the
committee
has
faith
and
confidence
in
the
scoring
system
used
by
our
audit
division.
I
know
there's
some
members
that
would
like
to
make
some
comments.
I'm
going
to
turn
to
senator
hammond.
Do
you
would
you
like
to
make
comments
now,
or
would
you
like
to
wait
till
after
the
motion
during
discussion.
E
A
Thank
you,
senator
yeah,
okay,
thank
you.
So
with
that,
I
would
entertain
a
motion
to
award
the
contract
for
a
statewide
single
audit
to
the
firm
ida
bailey.
A
E
Thank
you,
madam
chair,
and
while
I
I
I
will
probably
support
the
motion.
There
was
a
lot
of
debate
and
I
probably
could
go
in
another
direction.
I
I
felt
like
cla
did
a
really
good
job
of
presenting,
and
you
know
so.
One
of
the
things
I
was
looking
for
was
a
you
know,
fresh
pair
of
eyes.
I
was
looking
for
somebody
who
can
look
at
it
a
different
way.
I
looked
for
a
competitive
advantage
and
I
thought
that
you
know
when
somebody's
doing
a
audit
and
they're
doing
it
over
several
other.
E
E
I
liked
that
sometimes
change
is
good
and
I
was
looking
at
the
cost,
and
now
the
scoring
was
so
close.
The
rubric
that
was
used
by
our
staff,
the
the
the
the
scoring
rubric,
was
so
close
that
I
thought
that
several
other
firms
were
in
the
running,
but
I
really
was
looking
and-
and
I
had-
and
I
don't
know
if
it's
appropriate
or
not
to
say
that
the
name
I
think
I
already
said
it
once,
but
I
thought
cla
did
a
really
good
job.
E
Your
presentation
was
really
good
and
I
thought
that
you
could
have
done
a
really
good
job
with
the
state
as
well.
But
for
me,
competitive
advantage
is
one
of
those
things
that
you
do
something
over
and
over
again
you
get
you
become
really
good
at
it,
and
so
that's
what
I
liked.
I
Thank
you
so,
and
I
and
I
I've
done
this
process,
not
just
here
but
in
other
organizations,
some
actually
some
that
that
have
been
audited
by
some
of
these
folks.
I
think
that
you
know
I
also
was
looking
at
that
issue
of.
Is
it
time
to
get
a
fresh
pair
of
eyes
as
we
look
at
this,
and
you
know
the
fact
that
the
scoring
was
so
similar
right.
I
You
know,
I
have
confidence
that
any
actually
any
of
these
firms
could
could
do
a
good
job,
and
you
know
obviously
also
what
our
staff
the
process
they
went
through.
I
I
take
a
lot
of
of
that
as
as
as
information
that
I
would
use
in
in
making
a
decision.
I
think
that
so
you
know
so
I
so
I
support
the
motion.
I
even
though
it's
this,
you
know
having
going
with
the
same
firm
that
we've
had
for
many
years.
I
I
think
that
you
know
they
could
also
create.
You
know
a
fresh
pair
by
scenario
in
the
way
that
they
do
things.
I
know
we've
got
so
many
new
people
in
our
state
in
in
in
the
different
departments
with
people
retiring
and
those
kind
of
things.
So
I
and
I
think,
there's
some
consistency.
Having
some
consistency,
I
think
there's
also
good
and
I
and
I
would
say
in
the
future,
I
guess
for
the
process.
I
One
of
the
things
I
think
that
we
should
look
at
is
also
the
diversity
in
the
workforce.
I
didn't.
I
didn't
see
that
necessarily
in
in
the
presentations
that
were
given
today
and
in
the
the
information,
but
I
think
that
you
know
giving
opportunities
for
folks
in
our
communities
that
perhaps
haven't
been
haven't
had
that
opportunity.
I
think
that
I
think
that
would
be
good
to
look
at
as
we
move
in
the
future,
but
those
are
kind
of
my
thoughts.
Thank
you
manager.
C
A
quick
one
I
just
wanted
to
echo
what
a
difficult
decision
this
was
with
so
many
you
know
really:
five
qualified
applicants
and
I'm
going
to
go
along
with
the
emotion
as
well,
but
just
wanted
to
thank
everyone
and
wish
we
could
do
more
than
one.
A
Thank
you,
assemblymember,
and
I
do
want
to
add
some
comments
in
as
well.
I
it
was
a
very
difficult
decision
and
when
the
decision
is
so
close,
one
of
the
things
that
really
weighted
and
was
relying
on
our
staff
in
the
scoring
system
that
they
used
and
in
the
end,
that's
where
my
comfort
level
was
and
I'm
looking
at,
who
was
the
highest
scoring
agency.
A
But
I
do
want
to
echo
the
sentiments
of
my
colleague
senator
dennis
that
I
know
that
when
they're
looking
at
staff,
as
a
scoring
measure
meant
that
they're
looking
at
the
experience
of
the
staff,
but
I
think
that
one
of
the
things
that
would
be
important
to
me
in
the
future
is
also
looking
at
the
diversity
diversity
of
the
staff
as
well
and
really
taking
into
account.
You
know,
is
for
the
firms
that
are
here.
A
Are
they
reflective
of
what
our
state
looks
like
and
are
we
giving
opportunity
to
those
communities
that
have
been
underserved
or
underrepresented?
So
with
that
we
have
our
our
motion.
First
from
senator
dennis
a
second
from
assembly
member
miller,
all
those
in
favor,
please
signify
by
saying
aye
aye.
All
those
opposed,
nay
motion
carries.
Thank
you.
Thank
you
for
being
here.
A
Okay,
members,
we
are
going
to
go
back
and
take
our
agenda
item
in
order
now,
so
we
are
going
back
to
agenda
item
number
four,
which
is
a
presentation
of
audit
reports.
The
first
audit
which
we
will
be
hearing
is
agenda,
item
number
four:
a
an
audit
of
the
department
of
health
and
human
services,
division
of
child
and
family
services,
assessment
and
safety
of
child
placement,
and
we
have
deputy
legislative
auditor,
scott
jones
and
audit
supervisor
tammy
getz
here
when
you
are
ready,
mr
jones
and
ms
getz,
please
proceed.
D
Good
afternoon,
chair
and
members
of
the
audit
subcommittee
for
the
record,
my
name
is
scott
jones,
deputy
legislative
auditor.
If
I
could
direct
your
attention
to
page
one,
I
will
begin
my
presentation
with
some
background
information.
The
division's
mission
is
to
provide
support
and
services
to
assist
nevada's
children
and
families
in
reaching
their
full
human
potential.
Child
welfare
services
are
funded
primarily
by
state
and
federal
funds,
as
indicated
in
exhibit
one
on
page
two.
The
division
had
revenues
of
23
million
and
expenditures
of
21
million
supporting
rural
child
welfare
in
fiscal
year.
2021.
D
child
welfare
agencies
provide
and
oversee
a
continuum
of
services
to
support
children,
parents
and
caregivers.
The
continuum
of
services
includes
comprehensive
case
management,
emergency
shelter,
care
foster
and
relative
care
group
home
care,
respite
care,
residential
treatment
care
and
independent
living
services.
D
Page
3
provides
an
overview
of
the
division's
child
welfare
responsibilities,
including
the
process
for
child
removal
and
the
divisions.
Monitoring
of
foster
and
unlicensed
homes
exhibit
2.
On
page
4
provides
the
total
number
of
homes,
housing,
children
in
state
custody
by
county
and
licensure
status.
D
D
D
Our
audit
objectives
were
to
determine
if
division
processes
ensure
foster
care
and
other
homes.
Housing
children
in
state
custody
were
adequate
to
ensure
the
safety
and
welfare
of
children
and
to
evaluate
controls
over
certain
payments.
Supporting
children
and
youth
to
ensure
payments
were
accurate
and
appropriate.
D
On
page
seven,
we
begin
our
findings
and
recommendations
we
found
the
majority
of
placements
were
sufficiently
sanitary
and
safe.
However,
child
placement
providers
did
not
always
comply
with
health
safety
and
regulatory
standards
we
inspected,
30
licensed
and
unlicensed
placements
in
all
division
regions,
including
24,
licensed
foster
care
and
6
unlicensed
placements,
as
depicted
in
exhibit
5.
D
of
those
inspected,
10
or
33
percent
of
placements
had
health
or
safety
deficiencies,
as
stated
on
page
eight.
We
also
identified
one
unlicensed
placement
with
unsanitary
and
bleak
living
conditions
in
this
placement.
There
were
sufficiently
substandard
conditions
and
division.
The
division
promptly
transferred
the
children
to
a
different
placement
in
placements,
in
which
health
and
safety
standards
were
not
maintained.
Children
were
potentially
exposed
to
conditions
that
put
their
health
and
safety
at
risk.
D
Page
9
shows
that
of
the
24
foster
homes
inspected,
19
or
79
had
at
least
one
foster
care
regulatory
violation.
Regulatory
violations
included
six
placements
that
did
not
properly
maintain
child
medical
records
18
placements.
That
did
not
maintain
a
clothing
inventory
for
children
and
one
home
lacking
a
bedroom
window
screen,
as
shown
in
exhibit
six
on
the
top
of
page
10..
D
We
also
found
that
four
foster
providers
did
not
comply
with
medication
management
requirements
established
in
regulation.
Foster
care
providers
are
required
to
maintain
records
detailing
provided
medication
and
the
date
and
time
administered
homes
evaluated
included
children
on
antipsychotic
and
anti-seizure
medications.
D
Without
complete
medication
administration
records
there
is
no
documentation,
verifying
children
receive
medications,
timely
continuing
on
page
10.
We
note
that
the
division
did
not
have
evidence
that
provider,
health
and
safety
assessments
were
completed.
For
some
placements
housing
children
in
state
custody,
after
conducting
reviews
of
division
files
for
11
unlicensed
placements
selected
for
inspection,
we
found
the
division
did
not
have
evidence
required
background
checks
and
home
assessments
were
completed
for
some
providers
as
depicted
in
exhibit
7
on
page
11.
D
There
was
no
evidence
of
home
inspection
documentation
for
27
percent
and
no
evidence
of
background
check
for
47
45
percent
of
unlicensed
placement
providers
assessed.
In
addition,
some
unlicensed
emergency
placement
lacked
required
division
safety
assessments,
including
29,
that
lacked
emergency
placement,
checklists
and
57
percent
that
lacked
confirming
safe
environment
assessments.
Children
are
exposed
to
higher
risk
and
unlicensed
placements
when
these
required
assessments
are
not
completed
on
page
12,
we
also
found
that
the
division
did
not
always
complete
home
inspection
documentation
and
ensure
that
all
residents
of
foster
homes
received
required.
D
Health
assessments,
58
or
4
out
of
24
foster
home
inspection
documentation
was
incomplete,
including
two
missing
inspection,
checklists,
seven
checklists
with
some
inspection
criteria
not
completed
and
10
inspection
checklists
with
missing
or
incomplete
corrective
action
plans.
These
findings
are
summarized
in
exhibit
8
on
page
13.,
additionally
of
24
foster
homes,
5
homes
or
21
percent
did
not
have
a
tuberculosis
test.
Completed
timely
for
all
adults
in
the
home
and
one
foster
home
resident
did
not
have
any
tuberculosis
test
on
file.
D
Division
files
lacked
documentation
because
monitoring
and
oversight
controls
were
insufficient
to
ensure
all
activities
were
properly
documented.
We
also
recognized
in
the
report.
Division
management's
concerns
that
significant
staff
and
supervisory
shortages
and
telework
challenges
related
to
covet
19
restrictions
impacted
their
licensing
group
during
the
period
evaluated
on
page
14.
We
state
that
improving
the
process
by
which
the
division
establishes
and
manages
unlicensed
providers
would
support
both
caretakers
and
children
placed
in
these
households.
D
The
division
has
not
established
a
written
agreement
with
unlicensed
providers
who
oversee
children
in
state
custody
and
home
inspection
procedures
for
unlicensed
providers
are
brief
or
poorly
defined.
Additionally,
division
does
not
provide
documentation
regarding
expected
home
health
and
safety
standards
to
unlicensed
providers.
The
division,
children
in
state,
custody
and
providers
are
at
increased
exposure
to
preventable
risk
due
to
inadequate
oversight
of
unlicensed
placements
division
management
stated
too
much
regimentation
of
the
process
governing
unlicensed
placements
could
lead
to
children
being
placed
outside
of
familial
and
fictive
kin
placements.
D
Continuing
on
page
18,
we
found
foster
care
payments
were
accurately
and
appropriately
administered
by
the
division.
We
randomly
selected
50
fiscal
year,
2021
foster
care
payments
of
4068,
total
claims
and
found
payments
were
accurately
calculated.
Payment
records
in
unity
agreed
to
the
state
accounting
system
and
special
payments
were
supported
by
medical
documentation.
D
The
division
helps
support
the
financial
health
of
foster
care
providers
and
the
state
when
it
administers
accurate
and
justified
foster
care
payments.
To
conclude,
the
report
dependencies
begin
on
page
19.,
appendix
a
is
our
audit
methodology
and
appendix
b
is
the
division's
response.
As
indicated
on
page
26,
the
division
accepted
all
10
recommendations,
chair
and
members
of
the
audit
subcommittee.
That
completes
my
presentation.
H
Thank
you
chair,
and
thank
you
for
this
for
this
presentation.
H
D
Scott
jones
deputy
legislative
auditor
for
the
record
so
assemblywoman
miller,
there
was
some
overlap,
although
I
don't
have
that
data
presented
in
here
and
don't
have
that
data
at
this
point.
But
there
was
some
that
were
missing
both
the
confirming
safe
environment
analysis,
as
well
as
the
emergency
placement
checklist.
H
Is
this
a
in
an
emergency
situation,
we're
just
grabbing
kids
and
making
sure
you
know
next
to
kim,
they
have
a
safe
place
to
sleep
that
night
and
maybe
the
the
medication
just
isn't
transferred
with
them,
or
maybe
we're
not
sure
at
that
time.
I
understand
in
emergencies.
It's
really
about.
You
know,
making
sure
that
the
children
have
a
safe
place
to
be
tonight
and,
of
course,
we
may
not
know
about
all
of
their
medications
and
all
of
that
kind
of
stuff
in
an
emergency
situation.
H
So
can
you
maybe
just
briefly
explain
the
process
if
this
is
just
for
children
that
were
placed
under
emergency
placements?
And
if
so,
is
that
part
of
the
checklist?
When
do
we
find
out
about
their
medications?
How
do
we
obtain
their
medications
and
also
as
you're
going
through-
and
I
know
I'm
throwing
a
lot
of
questions
at
you
as
you're
going
through
this,
and
we
discover
that?
H
D
Assembly,
woman
miller,
scott
jones,
deputy
legislative
auditor
for
the
record,
so
I
wanted
to
first
emphasize
with
this.
This
was
four
foster
providers
that
were
identified
that
had
not
completed
the
medication
administration
record.
This
is
not
that
the
children
did
not
receive
the
medication,
so
we,
while
during
our
inspections,
would
talk
to
the
providers
about
medications
that
were
administered
and
based
on
our
experience.
D
The
fraud
didn't
have
the
necessary
medication
management
records
that
are
required
to
track
those
medications
administered
to
children
and
that's
what
we
provide
here
and
on
on
page
10
as
an
explanation,
and
you
can,
let
me
know
if
I,
if
I
missed
any
of
your
questions,.
H
H
Follow-Up
chair
so
to
verify:
what's
the
expectation
for
them
to
be
completed,
I
I
would
imagine
this
would
be
on
the
emergency
checklist.
I
mean
I'm
trying
to
give
the
scenario
where
we
would
provide
the
most
grace.
You
know.
We
know
that
we
need
some
place
for
these
children
to
be
tonight
right
so
next
to
kin.
H
You
know
that
that
can
take
them
in
again.
We
understand
there's
times
where
children
are
being,
you
know
transferred
and
they
literally
with
just
the
clothes
on
their
back.
So
even
in
the
most
in
the
most
emergency,
immediate
situation,
where
we
would
provide
the
most
grace
and
understanding
still.
What
is
the
expectation
for
when
this
report
should
be
completed.
D
I'm
scott
jones
deputy
legislative
auditor
for
the
record
to
assemblywoman
miller,
so
in
regulation.
It
outlines
that
when
this
medication
is
administered
to
the
child,
they
need
to
document
the
dosage,
the
frequency,
the
time
it
was
administered,
the
type
of
medication
and
the
division
has
a
specific
form.
That's
available
to
the
providers
to
complete
to
verify
things
like
antipsychotic
and
anti-seizure
medications,
and
so
the
inspections
that
we
did
were
for
established
foster
providers
that
had
children
in
the
home.
D
E
Thank
you,
madam
chair,
and
so
my
line
of
question
is
kind
of
being
it's
going
to
be
the
same
sort
of
line
as
what
you
just
heard
from
the
assemblywoman.
I
imagine
this
is
the
way
I
see
it
that
to
become
a
foster
parent.
You
get
a
checklist
of
things
that
you
need
to
do.
Of
course,
the
agency
makes
sure
that
people
are
complying.
You
guys
go
in
and
find
out
that
there
is
some
compliance
issues.
For
example,
I
think
you
gave
one
with
the
medication.
E
The
other
one
was
on
the
the
parents
themselves,
the
family
members
in
the
home.
They
have
to
get
certain
shots
to
be
vaccinated
against
certain
diseases,
and-
and
so
you
found
out
that
some
of
them
weren't
complying
with
that.
E
I
guess
my
question
would
be
you
discover
that
in
your
audit,
how
often
are
we
getting
somebody
inspectors
in
to
look
at
what's
going
on
in
the
homes
when
they
discover
something
is
amiss
they're,
not
making
sure
there's
an
inventory
for
clothing
that
there's
not
a
shot
being
received
by
family
members
or
whatever
it
might
be?
How
often
are
they
going
into
the
home
after
they
discover
it
in
order
to
make
sure
that
they
that
they
do
come
under
compliance
as
quickly
as
possible?
E
I
guess
that's
my
question:
is
you
know
how
often
are
we
getting
inspectors
in
to
making
sure
that,
when
a
checklist
of
things
that
should
be
being
done
by
foster
families
that
that
they
become
they
get
come
into
compliance,
and
how
often
does
that
happen?.
D
Scott
jones
deputy
legislative
auditor
for
the
record
to
senator
hammond,
so
there
is
an
annual
licensing
inspection
that
takes
place
as
well
as
preliminary
inspections
before
they
get
approved,
and
then
there's
a
recertification
as
outlined
on
exhibit
three
where
foster
home
gets
recertified,
there's
also
caseworkers
that
are
coming
into
the
home
at
least
every
other
month
and
having
contact
with
the
child
every
month,
and
the
division
can
comment
more
on
this
to
provide
clarification,
but
as
part
of
the
inspection
process
that
they
do
on
an
annual
basis.
D
There
is
a
checklist
that
is
completed
and
there
is
a
section
for
corrective
action
that
needs
to
take
place,
and
then
that
is,
you
know,
by
policy
supposed
to
be
documented
and
followed
up
until
the
the
whatever
exception.
That's
identified
is
corrected.
E
Thank
you
and
follow
up,
madam
chair,
so
I
I
probably
should
say
this
question
for
the
agency
when
we
get
a
chance
to
talk
to
them.
So
when
they
do
their
yearly
inspection,
then
they
come
up
with
a
list
of
items
that
need
to
be
corrected,
and
then
the
caseworker
goes
in
is
that
is
it
the
policy
of
the
agency?
They
then
have
the
caseworker
update,
check,
verify
that
that
list
that
was
created
and
their
annual
licensing
or
re-licensing.
E
D
Scott
jones,
a
deputy
legislative
auditor
for
the
record
to
senator
hammond,
so
they
do
have
within
that
inspection
document
a
place
in
which
they
can
document
when
they
come
into
compliance
and
we
did
review
records
that
did
show
that
process.
Where
you
know
in
policy,
they
go
all
the
way
from
identifying
corrective
action
to
the
licensing
worker,
then
documenting
the
date
that
the
corrective
action
was
completed,
and
they
can.
You
know,
sign
off
on
that
to
ensure
that
that
is
completed.
E
C
D
Scott
jones
deputy
legislative
auditor
for
the
record
to
assemblywoman
dickman,
so
we
did
have
discussions
with
them
and
in
the
report
we
have
a
section
that
documents
that
they
had
challenges
with,
hiring
and
and
staffing
for
their
licensing
group
during
the
period
that
we
assessed.
So
that
was
definitely
a
challenge
that
they
identified
that
affected
the
ability
of
the
licensing
group,
and
so
that's
a
challenge
that
they
stated
was
in
place.
D
A
Thank
you,
and
I
I
have
a
couple
of
questions
and
it
probably
comes
comes
from
my
unfamiliarity
with
this
division,
but
I
know
that
you
mentioned
that
there
was
11
unlicensed
placements,
and
so
the
facilities
are
unlicensed.
How
long
is
the
facility
allowed
to
be
unlicensed,
or
are
they
always
an
unlicensed
facility,
or
are
they
required
to
obtain
a
license?
After
a
certain
point,
they're,
just
like
assembly
member
miller
said
they
might
be
an
emergency
placement,
so
that
placement
is
an
unlicensed
resident
because
they
hadn't
been
registered
with
the
state
before.
D
So-
and
we
talked
about
this
a
little
bit
in
the
report
that
the
goal
of
the
placement
of
the
child
is
to
be
in
the
most
supportive
least
restrictive
placement
that's
possible,
and
so
the
division
will
work
to
place
the
child
and
even
according
to
to
state
law
that
they
want
to
place
that
in
the
in
the
best
environment
possible,
and
so
in
certain
cases
that
could
be
with
family
or
fictive
kin
that
are
not
formally
licensed,
and
they
can
stay
with
that
child
for
as
long
as
that
provider
is
willing
to
watch
that
child.
A
Okay,
but
then,
but
in
the
reports
that
the
five
of
the
11
unlicensed
placements
lacked
a
background
check,
so
there
is
some
sort
of
checks
on
these
placements
right,
so
they
take
a
an
emergency
situation.
They
might
take
someone
place
it
with
the
next
of
kin,
but
they
are
required
to
do
a
check
to
make
sure
that
this
is
a
suitable
placement
for
this
child.
A
D
Scott
jones
deputy
legislative
auditor
for
the
record
to
the
chair,
so
we
looked
to
see
if
that
background
check
was
completed
with
record.
We
also
reached
out
to
the
agency
to
inquire
about
that,
and
during
that
time
of
the
audit
that
we
looked
into
it,
we
didn't
see
any
evidence
that
they
had
been
completed,
it's
possible
that
they
were
completed
since
we
have,
you
know,
concluded
our
paperwork
on
it,
so
the
division
can
state
if
they
have
done
subsequent
analysis
of
that.
A
A
C
Hi,
madam
chair,
for
the
record,
my
name
is
cindy
pitlock
and
I
serve
as
the
administrator
of
the
division
of
child
and
family
services,
and
I
just
wanted
to
note
that
it
was
an
absolute
pleasure
to
work
with
the
lcb
auditors
and
I
have
with
me
lori
jackson,
who
is
my
social
services
chief
five
that
can
answer
your
in
detail
questions.
So
I
would
defer
to
her
for
some
of
that
programmatic
questions.
But
if
you
have
anything
for
me
specifically,
I'm
here
certainly
to
support.
A
Thank
you,
miss
pitluck
and
miss
jackson.
I
just
had
the
one
question.
I
know
that
in
the
the
auditor's
evaluation
they
found
that
five
of
the
11
unlicensed
placements
hadn't
received
background
checks,
and
I
just
wanted
to
see.
If
that
had
been
corrected,
are
the
children
still
in
those
homes
and
have
those
background
checks
been
performed.
C
Thank
you,
madam
chair
lori,
jackson
for
the
record,
those
background
checks
were
performed
and
two
of
the
five
were
performed
through
law
enforcement.
At
the
time
of
the
emergency
placement,
we
have
the
ability
to
do
that
with
them
and
the
others
were
subsequently
performed
the
day
or
so
after,
but
the
documentation
that
shows
that
that
was
done
was
not
in
the
file.
A
C
Just
a
quick
question
about
that
vacancy
rate:
is
it
still
at
25?
Do
you
see
any
improvements
happening?
C
Thank
you
for
the
question
for
the
record
cindy
pitlock.
So
our
vacancy
rate
is
hovering
right
around
33
to
36
percent
right
now,
and
we
are
doing
everything
that
we
can
to
be
creative
in
getting
to
yes
with
with
potential
employees,
including
relocating
positions,
part-time
telecommuting,
blending,
everything
that
we
can
possibly
think
of.
So
yes,
the
answer
is
yes.
C
We
still
have
at
least
that
high
of
a
vacancy
rate
that
that
you
were
quoted,
but
we
are
certainly
working
with
durham
and
with
our
hr
department,
with
other
divisions
within
our
own
department,
to
utilize
our
resources
as
best
we
can
to
take
care
of
the
most
acute
situations
and
and
triage
in
that
manner,
and
hopefully
someday
there
will
be
light
at
the
end
of
our
tunnel
and
those
that
that
light
will
be
more
people
to
help
perform
services
for
the
state.
C
A
A
A
Okay,
all
those
in
favor,
please
signify
by
saying
I
I
all
those
opposed
motion
carries
unanimously.
Thank
you.
Our
next
agenda
item
is
agenda.
Item
4b,
which
is
the
review
of
the
audit
of
the
nevada
state
board
of
medical
examiners.
We
have
audit
supervisor
tammy
goetz
here
and
deputy
legislative
auditor
amanda
barlow
here
to
present
the
audit.
F
Good
afternoon,
chair
and
members
of
the
audit
subcommittee
for
the
record,
my
name
is
tammy
getz
audits
supervisor.
Today
I
will
be
presenting
the
performance
audit
of
the
nevada
state
board
of
medical
examiners.
This
audit
was
requested
by
the
legislative
commission
after
concerns
were
raised
regarding
the
timeliness
of
licensing
investigations
and
the
purchase
of
an
office
building.
F
F
The
board
determines
the
competence
of
medical
providers,
including
physicians,
perfusionists,
physician
assistants
and
practitioners
of
respiratory
care.
The
board
has
offices
in
reno
and
las
vegas
with
38
total
staff.
As
of
february
2021.,
the
board
is
self-funded
primarily
from
license
and
registration
fees
exhibit
one
on
page
2
shows
that
the
board
had
total
revenues
of
5.3
million
and
expenditures
of
4.9
million
in
calendar
year
2020..
F
F
F
Jurisdiction
must
be
established
when
a
complaint
is
received
to
establish
jurisdiction.
The
complaint
must
be
against
a
board.
Licensee
and
alleged
conduct
constitutes
a
violation
of
the
medical
practice
act.
Complaints
for
which
the
board
has
no
jurisdiction
are
closed
or
referred
to
the
appropriate
agency
for
further
review.
F
In
order
to
discipline
a
licensee,
a
complaint
must
be
substantiated
through
an
investigation.
The
board
can
pursue
disciplinary
action
against
a
medical
provider
when
complaints
are
substantiated,
exhibit
4
on
page
4,
shows
types
of
disciplinary
actions
and
exhibit
5.
On
page
6
outlines
the
investigative
and
formal
disciplinary
processes
on
page
7,
we
describe
our
audit
scope
and
objectives.
F
For
workload
trends
and
from
2008
for
reserve
balance
analysis,
our
audit
objectives
were
to
evaluate
the
board's
processes
for
licensing
physicians
and
investigating
complaints
and
evaluate
the
board's
process
for
purchasing
an
office
building
on
page
8.
We
begin
our
findings
chapters.
Overall,
we
found
opportunities
for
improvements
to
the
board's
investigative
and
disciplinary
processes.
F
The
board
can
improve
the
monitoring
of
its
complaint
resolution
process,
which
can
take
as
long
as
several
years
to
finalize
large
gaps
of
time
existed
between
activities
in
certain
cases
where
the
board
could
not
provide
explanations
for
delays.
Timely
resolution
of
cases
is
important
for
ensuring
practicing,
physicians
are
competent
and
patients
are
safe
from
harm.
F
F
We
found
it
took
an
average
of
23
days
for
a
complaint
to
be
reviewed
and
assigned
to
an
investigator
five
cases
took
significantly
longer
up
to
68
days
management
stated
the
intake
turnaround
goal
is
seven
days.
Investigators
took
31
days
to
review
complaints,
notify
licensees.
They
were
under
investigation
and
request
medical
records
if
needed.
F
F
The
legal
division
recommends
discipline
for
violators,
which
include
penalties
such
as
monetary
fines,
continuing
medical
education,
public
reprimands
and
license
suspension
or
revocation
the
board
has
discretion
by
statute
in
making
the
final
disciplinary
determinations
and
utilizes
judgment
and
licensee
history.
In
this
process,
however,
the
division
has
not
established
disciplinary
guidelines
or
schedules
that
recommend
penalties
based
on
specific
violations.
F
We
found
such
guidelines
to
be
a
best
practice
in
our
conversations
with
other
states
for
18
legal
cases.
We
reviewed
only
seven
cases
were
assessed.
Fines,
even
though
all
of
the
violations
in
the
remaining
11
cases
were
eligible
exhibit
6
on
page
13
shows
the
variations
in
assessed,
fines
and
the
relays
related
violations
cited.
F
F
State
law
allows
the
board
to
recover
investigation
and
disciplinary
costs
from
the
licensee.
As
long
as
an
itemized
statement
of
fees
is
provided
to
support
fees
assessed
the
board
recovered
about
seventy
thousand
in
investigation
fees.
In
eighteen
cases
closed
during
calendar
years,
two
thousand
nineteen
and
twenty
twenty
itemized
statements
did
not
support.
Cost
recovery
amounts
in
two
of
the
18
cases
with
cost
recoveries.
F
Even
though
the
board's
operational
manual
states
staff
should
be
able
to
provide
an
accounting
for
their
hours,
documentation
to
support
hours
charged
also
did
not
exist.
As
a
result,
hours
charged
did
not
always
appear
to
be
appropriate,
as
shown
in
exhibit
7
on
page
15.
The
hours
assessed
to
licensees
did
not
necessarily
correlate
to
the
length
of
time
necessary
to
close
a
case.
F
F
F
The
next
chapter
of
the
report
begins
on
page
17..
We
found
certain
board
activities
were
sufficiently
performed.
The
board
processed
applications
efficiently,
with
nearly
75
percent
of
the
time,
to
issue
a
license
attributed
to
applicants
obtaining
the
proper
documentation
to
allow
the
division
to
process
the
application.
F
On
page
19,
we
described
that
disciplinary
information
on
the
board's
website
and
the
national
practitioner
data
bank
was
accurate
for
all
cases.
Reviewed
state
law
requires
the
board's
website
to
include
a
list
of
each
licensee
and
a
brief
description
of
any
disciplinary
actions.
This
information
allows
individuals
to
make
informed
decisions
when
choosing
health
care
providers.
F
In
the
middle
of
the
page,
we
state
that
the
board
management
performed
sufficient
analysis
prior
to
purchasing
a
reno
office
building
in
2018
for
3.4
million.
We
reviewed
documentation
provided
by
management
to
determine
whether
quality
information
was
used
to
make
an
informed
decision.
Regarding
this
purchase,
we
found
the
rationale
and
calculation
used
to
estimate
the
need
for
increased
office.
Space
was
reasonable.
F
F
The
board's
reserves
balanced
from
2010
to
2020
is
shown
in
exhibit
9
on
page
20.,
to
conclude,
page
21
appendix
a
describes.
Our
audit
methodology
and
appendix
b
beginning
on
page
25,
contains
the
board's
response.
We
would
note
that
the
board's
response
includes
various
correction
actions
that
the
agency
has
already
taken.
F
A
Assembly,
member
dickman,
do
you
have
any
questions?
I
do
not.
Thank
you.
Okay.
I
have
some
questions
just
a
couple,
but
I
just
want
a
quick.
A
I
want
to
ask
quickly.
I
want
to
go
to
page
13
exhibit
six
of
the
18
cases.
Were
you
able
to
collect
any
demographic
information?
Miss
gets
regarding
the
cases
that
were
fined.
I
just
where,
where
my
concern
is,
is
when
you
have
three
cases
with
the
exact
same
violation
description,
but
only
one
was
charged
a
fine
and
then
we
see
it
again
in
case
eight
and
nine
and
then
also
in
case
13
and
14..
So
do
you
know
if
there
was
any
demographic
information
that
they
were
able
to
collect.
F
A
A
And
I
I
didn't
see
it
in
the
response,
but-
and
I
might
have
just
overlooked
it,
but
did
did
the
board
already
start
implementing
a
tracking
system
for
complaints?
I
can't
imagine,
being
a
practitioner
a
doctor
and
having
a
complaint
filed
against
me
and
not
ever
being
notified
by
the
board.
So
I'm
practicing
not
being
aware
that
there
has
been
a
formal
complaint
filed
against
me.
Do
you
know
of
the
board,
since
the
the
audit
was
performed
has
started
implementing
a
process
by
which
they
can
track?
F
A
Okay,
perfect
and
then
my
last
question,
ms
getz.
On
page
eight,
you
referenced
some
numbers
about.
You
know:
testing,
40,
investigative
and
20
legal
cases
from
2019
and
2020..
A
F
Chair
this
is
tammy
goetz
audit
supervisor
on
page
22
is
the
methodology
for
the
procedures
we
performed
and
at
the
very
bottom
of
that
page
we
indicate
that
the
population
was
924
for
those
two
calendar
years.
A
A
Okay,
seeing
none,
then
I
would
accept
a
motion
to
approve
the
audit
report.
I
have
a
first
by
assembly
member
miller,
a
second
by
senator
hammond.
Do
we
have
any
discussion
on
the
motion
seeing
none
all
those
in
favor,
please
signify
by
saying
I,
I
all
those
opposed
motion
carries
unanimously.
Thank
you,
okay.
Members.
The
next
item
on
our
agenda
is
our
last
item.
A
Okay
bps,
would
you
please
check
the
telephone
line
for
anyone
wishing
to
provide
public
comment
share?
The
public
line
is
open
and
working.
However,
there
are
no
callers
at
this
time.
Thank
you
so
much.
Okay
with
that
committee,
we
are
done
with
our
agenda
items.
I
want
to
thank
you
and
thank
our
audit
staff
for
all
the
work
they
did
in
preparing
the
materials
for
today,
especially
for
agenda
item
5..
Thank
you
for
all
of
the
work
you
do
and
thank
you
to
members
for
paying
attention
for
the
entire
length
of
the
meeting.