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Nevada System of Higher Education Single Audit Report for the Year Ended June 30, 2018

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Nevada System of Higher Education Single Audit Report for the Year Ended June 30, 2018 Nevada System of Higher Education Single Audit Report For the Year Ended June 30, 2018 College of Southern Nevada ⋅ Desert Research Institute ⋅ Great Basin College ⋅ Nevada State College ⋅ System Administration ⋅ Truckee Meadows Community College ⋅ University of Nevada, Las Vegas ⋅ University of Nevada, Reno ⋅ Western Nevada College 1 NEVADA SYSTEM OF HIGHER EDUCATION BOARD OF REGENTS Mr. Kevin J. Page, Chairman Dr. Jason Geddes, Vice Chair Dr. Andrea Anderson Mrs. Cathy McAdoo Dr. Patrick R. Carter Mr. John T. Moran Mrs. Carol Del Carlo Ms. Allison Stephens Dr. Mark W. Doubrava Mr. Rick Trachok Mr. Trevor Hayes Mr. Anthony L. Williams Mr. Sam Liebermann Dean J. Gould, Chief of Staff OFFICERS OF THE NEVADA SYSTEM OF HIGHER EDUCATION Dr. Thom Reilly, Chancellor Nevada System of Higher Education Dr. Marc A. Johnson, President Dr. Marta Meana, Acting University of Nevada, Reno President University of Nevada, Las Vegas Dr. Federico Zaragoza, President College of Southern Nevada Ms. Joyce Helens, President Great Basin College Dr. Karin Hilgersom, President Truckee Meadows Community College Dr. Vincent Solis, President Western Nevada College Dr. Kristen Averyt, President Desert Research Institute Mr. Bart J. Patterson, President Nevada State College Document Prepared by the Finance Department Office of the Chancellor 2 NEVADA SYSTEM OF HIGHER EDUCATION SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS PAGE NO. INTRODUCTION Background ................................................................................................................................. 5 - 7 FINANCIAL STATEMENTS For the year ended June 30, 2018 (Report of Independent Auditors – pages 13-15) ............................................................................... 9 - 79 SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ................... 81 - 207 NOTES TO SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS .................................................................................................................. 208 - 209 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ................. 210 - 211 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE FOR EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY UNIFORM GUIDANCE ................................................................................... 212 - 214 SCHEDULE OF FINDINGS AND QUESTIONED COSTS ......................................................... 215 – 229 NSHE RESPONSES TO THE SCHEDULE OF FINDINGS AND QUESTIONED COSTS ........ 230 - 245 PRIOR YEAR SCHEDULE OF FINDINGS AND QUESTIONED COSTS ................................ 246 – 257 STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS ....................................... 258 - 262 3 (The page intentionally blank) 4 NEVADA SYSTEM OF HIGHER EDUCATION SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2018 INTRODUCTION BACKGROUND The Nevada System of Higher Education (NSHE) is a state-supported, land grant institution established by the Nevada State Constitution of 1864. It began instruction in 1874. NSHE is fully accredited by the Northwest Association of Schools and Colleges. Nine separate institutions comprise the NSHE and include: • University of Nevada, Reno (UNR) • University of Nevada, Las Vegas (UNLV) • Nevada State College (NSC) • Desert Research Institute (DRI) • Truckee Meadows Community College (TMCC) • College of Southern Nevada (CSN) • Western Nevada College (WNC) • Great Basin College (GBC) • Nevada System of Higher Education Administration There are eight controllers’ offices within the NSHE located in Reno, Carson City, Elko, Las Vegas and Henderson. The controllers’ offices are responsible for the financial management of research grants. The Office of Contracts and Grants within the respective controllers’ offices are responsible for the maintenance of financial records and compliance with terms and conditions of the grants that are generally applicable. Compliance with terms and conditions applicable to certain grants and other agreements is the specific responsibility of the relevant principal investigator. 5 In addition to the controllers’ offices, one business center (Business Center North (BCN) in Reno) and purchasing offices at UNLV and CSN provide the purchasing and property management functions for the NSHE institutions. The major units of UNR include the College of Agriculture, Biotechnology and Natural Resources, College of Business Administration, College of Education, College of Engineering, College of Human and Community Services, College of Liberal Arts, College of Science, Cooperative Extension, Graduate School, Reynolds School of Journalism and the School of Medicine. UNR offers major fields of study leading to baccalaureate and advanced degrees through the academic departments in the various schools and colleges. UNLV offers major fields of study in different academic departments leading to baccalaureate and advanced degrees through academic departments in the following colleges and schools: Business, Education, Fine Arts, Graduate, Division of Health Sciences, Honors, Hotel Administration, Liberal Arts, Sciences, University College and Urban Affairs. UNLV is also home to a Dental and Law school. Research activities are conducted primarily at UNR, UNLV and DRI. NSHE has been awarded research grants by various Federal agencies. The primary agencies from which these funds were received during the year ended June 30, 2017 were: Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy Department of Veteran Affairs Environmental Protection Agency Department of Health and Human Services Department of Homeland Security 6 Department of Housing and Urban Development Department of Interior Department of Justice National Aeronautics and Space Administration National Endowment for the Humanities National Science Foundation Department of State Department of Transportation In addition, student financial aid funds were received under the Federal campus-based and Pell programs. 7 (This Page Intentionally Left Blank) 8 Nevada System of Higher Education Financial Statements June 30, 2018 University of Nevada, Reno University of Nevada, Las Vegas Nevada State College College of Southern Nevada Great Basin College Truckee Meadows Community College Western Nevada College Desert Research Institute System Administration 9 BOARD OF REGENTS Kevin J. Page, Chairman ............................................................ Las Vegas Jason Geddes, Ph.D., Vice Chairman ................................................. Reno Dr. Andrea Anderson ................................................................ Las Vegas Dr. Patrick R. Carter .................................................................. Las Vegas Carol Del Carlo ................................................................... Incline Village Mark W. Doubrava, M.D. .......................................................... Las Vegas Trevor Hayes .............................................................................. Las Vegas Sam Lieberman .......................................................................... Las Vegas Cathy McAdoo .................................................................................... Elko John T. Moran ............................................................................ Las Vegas Allison Stephens ........................................................................ Las Vegas Rick Trachok ....................................................................................... Reno Anthony L. Williams ................................................................. Las Vegas ADMINISTRATION Thom Reilly, D.P.A. .................................................................Chancellor Nevada System of Higher Education Kristen Averyt, Ph.D. ................................................................... President Desert Research Institute Joyce Helens, M.A. .................................................................... President Great Basin College Karin Hilgersom, Ph.D. ............................................................... President Truckee Meadows Community College Marta Meana, Ph.D. ......................................................... Acting President University of Nevada, Las Vegas Marc Johnson. .................................................................. Acting President University of Nevada, Reno Bart Patterson, JD. D. .................................................................. President Nevada State College Vincent Solis, Ph.D. .................................................................... President Western Nevada College Federico Zaragoza, Ph.D. ............................................................ President College of Southern Nevada The Nevada System of Higher Education does not discriminate on the basis of sex, race, color, religion, handicap, or national origin in the educational programs or activities which it operates. 10 Nevada System of Higher Education Financial Statements and Report of Independent Certified Public Accountants As of and for the Year Ended June 30, 2018 Contents Report of Independent Certified Public Accountants……………………………..1-3 Management’s Discussion and Analysis…………………………………………..5-14 Financial Statements Combined Statements of Net Position…………………………………………..15-16 Combined
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