2022-006 (originally 2021-009) – Matching and Financial Reporting (Material Weakness in Internal
Controls over Compliance) (repeated/modified)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: The City submitted 9 financial reports not approved by the Airport Manager and did not provide
supporting backup documentation to test accuracy on 3 of the financial reports.
Management’s Progress on Repeat Findings: The 2021 audit was completed in June of 2023. As such, the
City was unable to take corrective action during fiscal year 2022 that would result in progress towards
resolving this finding.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with
access to books, records, supporting documentation, and other information as needed for the auditor to
perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching
funds, must be accepted as part of the non-Federal entities matching when the following criteria is met
(1) Are verifiable from the non-Federal entities records.
Cause: The City did not have sufficient controls in place to review and approve reports ensuring accuracy
of reports to the grantor agency.
Questioned Cost: None
Effect: Lack of proper review for accuracy of reports can result in improper reporting which could lead to
disallowed costs. However, our audit disclosed no instances of unallowable costs.
2022-007 – Activities allowed, Allowable Costs over Non-Payroll (Material Weakness over Internal
Controls over Compliance, Other Noncompliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: During our review of non-payroll related transactions, 14 out of 18 transactions tested did not
include appropriate approval by the Airport Manager, 3 out of 18 transactions did not include a date of
approval by the Airport Manager, and 1 out of 18 transactions did not include supporting documentation
or purchase order information on the GL.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be
allowable under Federal awards.
Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on
all purchases or retaining the supporting documentation to ensure purchase is allowable.
Questioned Cost: Known and likely questioned costs of $35,021
Effect: The City may unintentionally charge expenses to the program that do not qualify and in turn lead
to questioned costs and/or repayment of funds to the Grantor agency.
2022-006 (originally 2021-009) – Matching and Financial Reporting (Material Weakness in Internal
Controls over Compliance) (repeated/modified)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: The City submitted 9 financial reports not approved by the Airport Manager and did not provide
supporting backup documentation to test accuracy on 3 of the financial reports.
Management’s Progress on Repeat Findings: The 2021 audit was completed in June of 2023. As such, the
City was unable to take corrective action during fiscal year 2022 that would result in progress towards
resolving this finding.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with
access to books, records, supporting documentation, and other information as needed for the auditor to
perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching
funds, must be accepted as part of the non-Federal entities matching when the following criteria is met
(1) Are verifiable from the non-Federal entities records.
Cause: The City did not have sufficient controls in place to review and approve reports ensuring accuracy
of reports to the grantor agency.
Questioned Cost: None
Effect: Lack of proper review for accuracy of reports can result in improper reporting which could lead to
disallowed costs. However, our audit disclosed no instances of unallowable costs.
2022-007 – Activities allowed, Allowable Costs over Non-Payroll (Material Weakness over Internal
Controls over Compliance, Other Noncompliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: During our review of non-payroll related transactions, 14 out of 18 transactions tested did not
include appropriate approval by the Airport Manager, 3 out of 18 transactions did not include a date of
approval by the Airport Manager, and 1 out of 18 transactions did not include supporting documentation
or purchase order information on the GL.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be
allowable under Federal awards.
Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on
all purchases or retaining the supporting documentation to ensure purchase is allowable.
Questioned Cost: Known and likely questioned costs of $35,021
Effect: The City may unintentionally charge expenses to the program that do not qualify and in turn lead
to questioned costs and/or repayment of funds to the Grantor agency.
2022-006 (originally 2021-009) – Matching and Financial Reporting (Material Weakness in Internal
Controls over Compliance) (repeated/modified)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: The City submitted 9 financial reports not approved by the Airport Manager and did not provide
supporting backup documentation to test accuracy on 3 of the financial reports.
Management’s Progress on Repeat Findings: The 2021 audit was completed in June of 2023. As such, the
City was unable to take corrective action during fiscal year 2022 that would result in progress towards
resolving this finding.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with
access to books, records, supporting documentation, and other information as needed for the auditor to
perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching
funds, must be accepted as part of the non-Federal entities matching when the following criteria is met
(1) Are verifiable from the non-Federal entities records.
Cause: The City did not have sufficient controls in place to review and approve reports ensuring accuracy
of reports to the grantor agency.
Questioned Cost: None
Effect: Lack of proper review for accuracy of reports can result in improper reporting which could lead to
disallowed costs. However, our audit disclosed no instances of unallowable costs.
2022-007 – Activities allowed, Allowable Costs over Non-Payroll (Material Weakness over Internal
Controls over Compliance, Other Noncompliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: During our review of non-payroll related transactions, 14 out of 18 transactions tested did not
include appropriate approval by the Airport Manager, 3 out of 18 transactions did not include a date of
approval by the Airport Manager, and 1 out of 18 transactions did not include supporting documentation
or purchase order information on the GL.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be
allowable under Federal awards.
Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on
all purchases or retaining the supporting documentation to ensure purchase is allowable.
Questioned Cost: Known and likely questioned costs of $35,021
Effect: The City may unintentionally charge expenses to the program that do not qualify and in turn lead
to questioned costs and/or repayment of funds to the Grantor agency.
2022-008 – Reporting (Significant Deficiency over Internal Controls over Compliance)
Federal Program Information
Federal Award Title and ALN: Hazard Mitigation Grant Program, 97.067
Federal Awarding Agency: Department of Homeland Security
Pass-Through Agency: NM Department of Homeland Security and Emergency Management
Federal Award ID Number: EMW-2019-SS-00083-S01-02; EMW-2020-SS-00127-S01-01
Federal Award Year: 2019, 2020
Condition: The City is not submitting financial and performance reports to the pass through entity on a
timely basis.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per sub-recipient grant agreements, EMW-2019-SS-00083-S01 and EMW-2020-SS-0127-S01, from the
State of New Mexico Department of Homeland Security, the City shall submit quarterly reports by the 30th
of the month following the quarter end.
Cause: The City did not have sufficient controls in place to ensure the timeliness of reports being
submitted to the pass through entity.
Questioned Cost: None
Effect: Lack of proper review for timeliness of reports can result in improper reporting which could lead
to disallowed costs. However, our audit disclosed no instances of unallowable costs.
2022-006 (originally 2021-009) – Matching and Financial Reporting (Material Weakness in Internal
Controls over Compliance) (repeated/modified)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: The City submitted 9 financial reports not approved by the Airport Manager and did not provide
supporting backup documentation to test accuracy on 3 of the financial reports.
Management’s Progress on Repeat Findings: The 2021 audit was completed in June of 2023. As such, the
City was unable to take corrective action during fiscal year 2022 that would result in progress towards
resolving this finding.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with
access to books, records, supporting documentation, and other information as needed for the auditor to
perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching
funds, must be accepted as part of the non-Federal entities matching when the following criteria is met
(1) Are verifiable from the non-Federal entities records.
Cause: The City did not have sufficient controls in place to review and approve reports ensuring accuracy
of reports to the grantor agency.
Questioned Cost: None
Effect: Lack of proper review for accuracy of reports can result in improper reporting which could lead to
disallowed costs. However, our audit disclosed no instances of unallowable costs.
2022-007 – Activities allowed, Allowable Costs over Non-Payroll (Material Weakness over Internal
Controls over Compliance, Other Noncompliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: During our review of non-payroll related transactions, 14 out of 18 transactions tested did not
include appropriate approval by the Airport Manager, 3 out of 18 transactions did not include a date of
approval by the Airport Manager, and 1 out of 18 transactions did not include supporting documentation
or purchase order information on the GL.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be
allowable under Federal awards.
Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on
all purchases or retaining the supporting documentation to ensure purchase is allowable.
Questioned Cost: Known and likely questioned costs of $35,021
Effect: The City may unintentionally charge expenses to the program that do not qualify and in turn lead
to questioned costs and/or repayment of funds to the Grantor agency.
2022-006 (originally 2021-009) – Matching and Financial Reporting (Material Weakness in Internal
Controls over Compliance) (repeated/modified)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: The City submitted 9 financial reports not approved by the Airport Manager and did not provide
supporting backup documentation to test accuracy on 3 of the financial reports.
Management’s Progress on Repeat Findings: The 2021 audit was completed in June of 2023. As such, the
City was unable to take corrective action during fiscal year 2022 that would result in progress towards
resolving this finding.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with
access to books, records, supporting documentation, and other information as needed for the auditor to
perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching
funds, must be accepted as part of the non-Federal entities matching when the following criteria is met
(1) Are verifiable from the non-Federal entities records.
Cause: The City did not have sufficient controls in place to review and approve reports ensuring accuracy
of reports to the grantor agency.
Questioned Cost: None
Effect: Lack of proper review for accuracy of reports can result in improper reporting which could lead to
disallowed costs. However, our audit disclosed no instances of unallowable costs.
2022-007 – Activities allowed, Allowable Costs over Non-Payroll (Material Weakness over Internal
Controls over Compliance, Other Noncompliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: During our review of non-payroll related transactions, 14 out of 18 transactions tested did not
include appropriate approval by the Airport Manager, 3 out of 18 transactions did not include a date of
approval by the Airport Manager, and 1 out of 18 transactions did not include supporting documentation
or purchase order information on the GL.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be
allowable under Federal awards.
Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on
all purchases or retaining the supporting documentation to ensure purchase is allowable.
Questioned Cost: Known and likely questioned costs of $35,021
Effect: The City may unintentionally charge expenses to the program that do not qualify and in turn lead
to questioned costs and/or repayment of funds to the Grantor agency.
2022-006 (originally 2021-009) – Matching and Financial Reporting (Material Weakness in Internal
Controls over Compliance) (repeated/modified)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: The City submitted 9 financial reports not approved by the Airport Manager and did not provide
supporting backup documentation to test accuracy on 3 of the financial reports.
Management’s Progress on Repeat Findings: The 2021 audit was completed in June of 2023. As such, the
City was unable to take corrective action during fiscal year 2022 that would result in progress towards
resolving this finding.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.508(d), the Auditee must provide the auditor with
access to books, records, supporting documentation, and other information as needed for the auditor to
perform the audit required by grant agreements and part 200.306(b), for all federal awards, any matching
funds, must be accepted as part of the non-Federal entities matching when the following criteria is met
(1) Are verifiable from the non-Federal entities records.
Cause: The City did not have sufficient controls in place to review and approve reports ensuring accuracy
of reports to the grantor agency.
Questioned Cost: None
Effect: Lack of proper review for accuracy of reports can result in improper reporting which could lead to
disallowed costs. However, our audit disclosed no instances of unallowable costs.
2022-007 – Activities allowed, Allowable Costs over Non-Payroll (Material Weakness over Internal
Controls over Compliance, Other Noncompliance)
Federal Program Information
Federal Award Title and ALN: Airport Improvement Program, 20.106
Federal Awarding Agency: Department of Transportation, Federal Aviation Administration
Federal Award ID Number: SAF-SWG-3-35-0037-052-2020; SAF-SWG-3-35-0037-053-2020;
SAF-SWG-3-35-0037-054-2021
Federal Award Year: 2020, 2021
Condition: During our review of non-payroll related transactions, 14 out of 18 transactions tested did not
include appropriate approval by the Airport Manager, 3 out of 18 transactions did not include a date of
approval by the Airport Manager, and 1 out of 18 transactions did not include supporting documentation
or purchase order information on the GL.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be
allowable under Federal awards.
Cause: The City is not following procedures to ensure the appropriate approvals are being conducted on
all purchases or retaining the supporting documentation to ensure purchase is allowable.
Questioned Cost: Known and likely questioned costs of $35,021
Effect: The City may unintentionally charge expenses to the program that do not qualify and in turn lead
to questioned costs and/or repayment of funds to the Grantor agency.
2022-008 – Reporting (Significant Deficiency over Internal Controls over Compliance)
Federal Program Information
Federal Award Title and ALN: Hazard Mitigation Grant Program, 97.067
Federal Awarding Agency: Department of Homeland Security
Pass-Through Agency: NM Department of Homeland Security and Emergency Management
Federal Award ID Number: EMW-2019-SS-00083-S01-02; EMW-2020-SS-00127-S01-01
Federal Award Year: 2019, 2020
Condition: The City is not submitting financial and performance reports to the pass through entity on a
timely basis.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and
the terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General
of the United States or the “Internal Control Integrated Framework”, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Per sub-recipient grant agreements, EMW-2019-SS-00083-S01 and EMW-2020-SS-0127-S01, from the
State of New Mexico Department of Homeland Security, the City shall submit quarterly reports by the 30th
of the month following the quarter end.
Cause: The City did not have sufficient controls in place to ensure the timeliness of reports being
submitted to the pass through entity.
Questioned Cost: None
Effect: Lack of proper review for timeliness of reports can result in improper reporting which could lead
to disallowed costs. However, our audit disclosed no instances of unallowable costs.