Federal Program Information:
Funding Agency: U.S. Department of Education
Title: Education Stabilization Fund
Federal Assistance Listing: 84.425D
Passthrough: State of New Mexico Public Education Department
Award Year: 2023
Criteria: New Mexico Public Education Department award letter requirements for capital expenditures and construction projects for
funds allocated to Fund 24308 on page 3.
You must receive written prior approval for purchase of equipment with a unit cost equal to or in excess of $5,000. Failure to
do so will result in denial of reimbursement for the cost of such an item. Attach an approved Federal Grant Equipment Form to
your BAR if you will include budget in object code 57331 “Fixed Assets (more than $5,000).” Attach the approved form to your
application if you submit an initial 2021-22 OBMS budget. The approved Federal Grant Equipment Form must also be uploaded
with your request for reimbursement (RFR) containing such expenses.
You must receive written prior approval for construction projects. Approval is documented in the SharePoint application and
on a Federal Grant Equipment Form. Any approved construction projects must comply with applicable Uniform Guidance
requirements, as well as the Department’s regulations regarding construction. See 34 CFR § 76.600. As is the case with all
construction contracts using laborers and mechanics financed by federal education funds, and LEA that uses ESSER funds for
construction contracts over $2,000 must meet all Davis-Bacon prevailing wage requirements and include language in the
construction contracts that all contractors or subcontractors must pay wages that are not less than those established for the
locality of the project (prevailing wage rates). (See 20 U.S.C. 1232b Labor Standards.)
Condition: During our testing of single audit disbursements and with regards to requirements of the Compliance Supplement for
equipment/real property management and special tests and provisions, we identified that the District had not obtained the Federal
Grant Equipment Form for the project. We reviewed three separate construction projects which used these funds.
The District had included the upgrades to its heating and ventilation and the repair of a roof in its grant application, which was
approved by the New Mexico Public Education Department, but it had not obtained and completed the Federal Grant Equipment
Form. While we have been instructed that these forms were required on all projects as well as individual construction projects and
have obtained in other district audits, the District had been told by an individual at the State that construction projects did not need
the form.
However, the following bullet point was in the award letters for the funds:
You must receive written prior approval for construction projects. Approval is documented in the
SharePoint application and on a Federal Grant Equipment Form. Any approved construction projects must
comply with applicable Uniform Guidance requirements, as well as the Department’s regulations regarding
construction. See 34 CFR § 76.600. As is the case with all construction contracts using laborers and
mechanics financed by federal education funds, an LEA that uses ESSER funds for construction contracts
over $2,000 must meet all Davis-Bacon prevailing wage requirements and include language in the
construction contracts that all contractors or subcontractors must pay wages that are not less than those
established for the locality of the project (prevailing wage rates). (See 20 U.S.C. 1232b Labor Standards.)
Additionally, the District did not meet the requirement for the Davis-Bacon prevailing wage requirement. The District had not
included the prevailing wage requirements in the contracts nor did the District obtain the weekly certified payroll reports from two
of the three projects. The District made no improvements in this area as compared to the prior year with no amendments to contracts, obtaining of Federal
Grant Equipment Forms, or obtaining of weekly wage certifications from construction or maintenance vendors.
Questioned Costs: None. The State of New Mexico Public Education Department (PED) had approved the grant application of
the District prior to obtaining the contract for updating the security, fire, and ventilation systems in the schools and the roof
replacement. As such, it had approved the construction project via approval of the grant application. Additionally, the PED has
been approving the requests for reimbursement which include details of the expenditures which indicate the PED is still approving
the ongoing costs of these upgrades with these funds, which are appropriate use of the funds.
However, the boiler project was an emergency issue which used these funds with no amendment to the application nor was there a
Federal Grant Equipment Form authorization obtained.
Cause: District personnel had obtained approval for their grant application from the PED and did not pay attention to the bullet
points in the award letter requiring them to complete the federal grant equipment form as well. Additionally, the District did not pay
attention to the bullet point in the award letter requiring them to include language in the contract with regards to prevailing wages.
The District did obtain the weekly certifications for the roofing project.
Effect: The District is not in compliance with Federal and PED regulations related to the grant and could put funding in jeopardy or
require the District to reimburse the program for improper grant distributions. The fact that the grant was approved by the PED and
that the contractor is aware of prevailing wage requirements on construction projects for school districts does not relieve the District
of following Federal, State, and grant requirements.
Auditor’s Recommendation: We recommend that the District establish a policy and implement internal control procedures regarding
the review of all grant award letters to ensure that the District is aware of all requirements that are imposed on the District with
accepting the funds. We also recommend that the District work with the contractor to obtain weekly wage certifications going back
from the beginning of the project forward to be able to demonstrate that the appropriate wages were paid during the full time-frame
of the project.
Responsible Official’s Plan:
Specific corrective action plan for finding:
District will a policy and implement internal control procedures regarding the review of all grant award letters to ensure
that the District is aware of all requirements that are imposed on the District with accepting the funds.
Timeline for completion of corrective action plan:
December 2023
Employee position(s) responsible for meeting the timeline:
Federal Programs Director and Federal Programs Clerk
Federal Program Information:
Funding Agency: U.S. Department of Education
Title: Impact Aid
Federal Assistance Listing: 84.041
Passthrough: State of New Mexico Public Education Department
Award Year: 2023
Criteria: 20 U.S.C. Code 7703 – Payments for Eligible Federally Connected Children
(a)Computation of payment
(1)In general For the purpose of computing the amount that a local educational agency is eligible to receive under subsection (b) or
(d) for any fiscal year, the Secretary shall determine the number of children who were in average daily attendance in the schools
of such agency, and for whom such agency provided free public education, during the preceding school year and who, while in
attendance at such schools—
(A)
(i) resided on Federal property with a parent employed on Federal property situated in whole or in part within the
boundaries of the school district of such agency; or
(ii) resided on Federal property with a parent who is an official of, and accredited by, a foreign government and is a foreign
military officer;
(B) resided on Federal property and had a parent on active duty in the uniformed services (as defined in section 101 of title 37);
(C) resided on Indian lands;
Impact Aid Regulations
§ 222.35 How does a local educational agency count the membership of its federally connected children?
An applicant counts the membership of its federally connected children using one of the following methods:
(a) Parent-pupil survey. An applicant may conduct a parent-pupil survey to count the membership of its federally connected
children, which must be counted as of the survey date.
(b) Source check. A source check is a type of survey tool that groups children being claimed on the Impact Aid
application by Federal property. This form is used in lieu of the parent-pupil survey form to substantiate a pupil’s place of residence
or parent’s place of employment on the survey date.
(1) The source check must include sufficient information to determine the eligibility of the Federal property and the individual
children claimed on the form.
(2) A source check may also include:
(iv) Certification by the Bureau of Indian Affairs (BIA) or authorized tribal official regarding the eligibility of Indian lands.
Condition: The District did not have signed parent-pupil surveys for the survey date for the grant funds under audit. The District
also did not have a source check form with a listing of the students with a tribal official’s certification.
The District did have a source check form with nineteen students listed for the school year during the survey date, but there was no
certification by a tribal leader.
Questioned Costs: $493,534
The District had claimed 69 total students as children living on Federal land, four of which were children with disabilities. As none
of these students claimed have valid parent-pupil surveys or a valid source check, all student claimed on the application become
questioned costs. The District has received $493,534 from Impact Aid to date based upon this application under audit. Cause: The District had misunderstood the method of counting students for Impact Aid funding and the documentation required to
support this funding. The District had been counting students who had certificates of Indian blood no matter where they resided.
Effect: The District has been improperly claiming students who did not qualify for funding under the guidelines of Impact Aid.
Additionally, the District had not been obtaining the proper certification for those students who would qualify for funding under
Impact Aid. As such, funding which the District has been receiving under Impact Aid may be invalid, and the District may be
required to return those funds.
Auditor’s Recommendation: We recommend that the district put policies and procedures in place to properly identify students who
qualify under Impact Aid funding. After identification, we recommend that the District use the source check method to certify those
students as this requires obtaining one to three signatures, depending on the number of chapter’s who have students attending Jemez
Mountain Schools, rather than attempting to obtain the signature of each parent who’s children qualify because of where they live.
We also recommend that the District work to obtain as much certification as possible on the students who were part of this application
and any other applications which do not have parent-pupil surveys or source check certifications.
Responsable Official’s Plan:
Specific corrective action plan for finding:
The District will create policies and procedures to properly identify students.
Timeline for completion of corrective action plan:
December 2023
Employee position(s) responsible for meeting the timeline:
Federal Programs Director and Federal Programs Clerk
Schedule X
Federal Program Information:
Funding Agency: U.S. Department of Education
Title: Education Stabilization Fund
Federal Assistance Listing: 84.425D
Passthrough: State of New Mexico Public Education Department
Award Year: 2023
Criteria: New Mexico Public Education Department award letter requirements for capital expenditures and construction projects for
funds allocated to Fund 24308 on page 3.
You must receive written prior approval for purchase of equipment with a unit cost equal to or in excess of $5,000. Failure to
do so will result in denial of reimbursement for the cost of such an item. Attach an approved Federal Grant Equipment Form to
your BAR if you will include budget in object code 57331 “Fixed Assets (more than $5,000).” Attach the approved form to your
application if you submit an initial 2021-22 OBMS budget. The approved Federal Grant Equipment Form must also be uploaded
with your request for reimbursement (RFR) containing such expenses.
You must receive written prior approval for construction projects. Approval is documented in the SharePoint application and
on a Federal Grant Equipment Form. Any approved construction projects must comply with applicable Uniform Guidance
requirements, as well as the Department’s regulations regarding construction. See 34 CFR § 76.600. As is the case with all
construction contracts using laborers and mechanics financed by federal education funds, and LEA that uses ESSER funds for
construction contracts over $2,000 must meet all Davis-Bacon prevailing wage requirements and include language in the
construction contracts that all contractors or subcontractors must pay wages that are not less than those established for the
locality of the project (prevailing wage rates). (See 20 U.S.C. 1232b Labor Standards.)
Condition: During our testing of single audit disbursements and with regards to requirements of the Compliance Supplement for
equipment/real property management and special tests and provisions, we identified that the District had not obtained the Federal
Grant Equipment Form for the project. We reviewed three separate construction projects which used these funds.
The District had included the upgrades to its heating and ventilation and the repair of a roof in its grant application, which was
approved by the New Mexico Public Education Department, but it had not obtained and completed the Federal Grant Equipment
Form. While we have been instructed that these forms were required on all projects as well as individual construction projects and
have obtained in other district audits, the District had been told by an individual at the State that construction projects did not need
the form.
However, the following bullet point was in the award letters for the funds:
You must receive written prior approval for construction projects. Approval is documented in the
SharePoint application and on a Federal Grant Equipment Form. Any approved construction projects must
comply with applicable Uniform Guidance requirements, as well as the Department’s regulations regarding
construction. See 34 CFR § 76.600. As is the case with all construction contracts using laborers and
mechanics financed by federal education funds, an LEA that uses ESSER funds for construction contracts
over $2,000 must meet all Davis-Bacon prevailing wage requirements and include language in the
construction contracts that all contractors or subcontractors must pay wages that are not less than those
established for the locality of the project (prevailing wage rates). (See 20 U.S.C. 1232b Labor Standards.)
Additionally, the District did not meet the requirement for the Davis-Bacon prevailing wage requirement. The District had not
included the prevailing wage requirements in the contracts nor did the District obtain the weekly certified payroll reports from two
of the three projects. The District made no improvements in this area as compared to the prior year with no amendments to contracts, obtaining of Federal
Grant Equipment Forms, or obtaining of weekly wage certifications from construction or maintenance vendors.
Questioned Costs: None. The State of New Mexico Public Education Department (PED) had approved the grant application of
the District prior to obtaining the contract for updating the security, fire, and ventilation systems in the schools and the roof
replacement. As such, it had approved the construction project via approval of the grant application. Additionally, the PED has
been approving the requests for reimbursement which include details of the expenditures which indicate the PED is still approving
the ongoing costs of these upgrades with these funds, which are appropriate use of the funds.
However, the boiler project was an emergency issue which used these funds with no amendment to the application nor was there a
Federal Grant Equipment Form authorization obtained.
Cause: District personnel had obtained approval for their grant application from the PED and did not pay attention to the bullet
points in the award letter requiring them to complete the federal grant equipment form as well. Additionally, the District did not pay
attention to the bullet point in the award letter requiring them to include language in the contract with regards to prevailing wages.
The District did obtain the weekly certifications for the roofing project.
Effect: The District is not in compliance with Federal and PED regulations related to the grant and could put funding in jeopardy or
require the District to reimburse the program for improper grant distributions. The fact that the grant was approved by the PED and
that the contractor is aware of prevailing wage requirements on construction projects for school districts does not relieve the District
of following Federal, State, and grant requirements.
Auditor’s Recommendation: We recommend that the District establish a policy and implement internal control procedures regarding
the review of all grant award letters to ensure that the District is aware of all requirements that are imposed on the District with
accepting the funds. We also recommend that the District work with the contractor to obtain weekly wage certifications going back
from the beginning of the project forward to be able to demonstrate that the appropriate wages were paid during the full time-frame
of the project.
Responsible Official’s Plan:
Specific corrective action plan for finding:
District will a policy and implement internal control procedures regarding the review of all grant award letters to ensure
that the District is aware of all requirements that are imposed on the District with accepting the funds.
Timeline for completion of corrective action plan:
December 2023
Employee position(s) responsible for meeting the timeline:
Federal Programs Director and Federal Programs Clerk
Federal Program Information:
Funding Agency: U.S. Department of Education
Title: Impact Aid
Federal Assistance Listing: 84.041
Passthrough: State of New Mexico Public Education Department
Award Year: 2023
Criteria: 20 U.S.C. Code 7703 – Payments for Eligible Federally Connected Children
(a)Computation of payment
(1)In general For the purpose of computing the amount that a local educational agency is eligible to receive under subsection (b) or
(d) for any fiscal year, the Secretary shall determine the number of children who were in average daily attendance in the schools
of such agency, and for whom such agency provided free public education, during the preceding school year and who, while in
attendance at such schools—
(A)
(i) resided on Federal property with a parent employed on Federal property situated in whole or in part within the
boundaries of the school district of such agency; or
(ii) resided on Federal property with a parent who is an official of, and accredited by, a foreign government and is a foreign
military officer;
(B) resided on Federal property and had a parent on active duty in the uniformed services (as defined in section 101 of title 37);
(C) resided on Indian lands;
Impact Aid Regulations
§ 222.35 How does a local educational agency count the membership of its federally connected children?
An applicant counts the membership of its federally connected children using one of the following methods:
(a) Parent-pupil survey. An applicant may conduct a parent-pupil survey to count the membership of its federally connected
children, which must be counted as of the survey date.
(b) Source check. A source check is a type of survey tool that groups children being claimed on the Impact Aid
application by Federal property. This form is used in lieu of the parent-pupil survey form to substantiate a pupil’s place of residence
or parent’s place of employment on the survey date.
(1) The source check must include sufficient information to determine the eligibility of the Federal property and the individual
children claimed on the form.
(2) A source check may also include:
(iv) Certification by the Bureau of Indian Affairs (BIA) or authorized tribal official regarding the eligibility of Indian lands.
Condition: The District did not have signed parent-pupil surveys for the survey date for the grant funds under audit. The District
also did not have a source check form with a listing of the students with a tribal official’s certification.
The District did have a source check form with nineteen students listed for the school year during the survey date, but there was no
certification by a tribal leader.
Questioned Costs: $493,534
The District had claimed 69 total students as children living on Federal land, four of which were children with disabilities. As none
of these students claimed have valid parent-pupil surveys or a valid source check, all student claimed on the application become
questioned costs. The District has received $493,534 from Impact Aid to date based upon this application under audit. Cause: The District had misunderstood the method of counting students for Impact Aid funding and the documentation required to
support this funding. The District had been counting students who had certificates of Indian blood no matter where they resided.
Effect: The District has been improperly claiming students who did not qualify for funding under the guidelines of Impact Aid.
Additionally, the District had not been obtaining the proper certification for those students who would qualify for funding under
Impact Aid. As such, funding which the District has been receiving under Impact Aid may be invalid, and the District may be
required to return those funds.
Auditor’s Recommendation: We recommend that the district put policies and procedures in place to properly identify students who
qualify under Impact Aid funding. After identification, we recommend that the District use the source check method to certify those
students as this requires obtaining one to three signatures, depending on the number of chapter’s who have students attending Jemez
Mountain Schools, rather than attempting to obtain the signature of each parent who’s children qualify because of where they live.
We also recommend that the District work to obtain as much certification as possible on the students who were part of this application
and any other applications which do not have parent-pupil surveys or source check certifications.
Responsable Official’s Plan:
Specific corrective action plan for finding:
The District will create policies and procedures to properly identify students.
Timeline for completion of corrective action plan:
December 2023
Employee position(s) responsible for meeting the timeline:
Federal Programs Director and Federal Programs Clerk
Schedule X