FAC Explorer

Audit 17742

FY End
2022-06-30
Total Expended
$1.46M
Findings
2
Programs
11
Organization: City of Las Vegas (NM)
Year: 2022 Accepted: 2023-04-17
Auditor: Pattillo Brown & Hill LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12824 2022-007 - - B
589266 2022-007 - - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds - Nue $857,665 Yes 1
20.509 Formula Grants for Rural Areas and Tribal Transit Program $262,821 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $109,958 - 0
93.053 Nutrition Services Incentive Program $73,649 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds - Senior Center $62,671 Yes 0
93.764 Pphf- Cooperative Agreements to Implement the National Strategy for Suicide Prevention (short Title: National Strategy Grants) $33,178 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $28,997 - 0
21.019 Coronavirus Relief Fund $19,157 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds - Public Libraries $10,443 Yes 0
93.011 National Organizations of State and Local Officials $3,000 - 0
16.804 Recovery Act - Edward Byrne Memorial Justice Assistance Grant (jag) Program / Grants to Units of Local Government $1,197 - 0

Contacts

Name Title Type
K15QJ5B1EA11 Dominic Chavez Auditee
5054541401 Chris Garner Auditor
No contacts on file

Notes to SEFA

Title: Loans Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the City of Las Vegas (the City) and is presented on modified accrual basis of accounting, which is the same basis as was used to prepare the fund financial statements except for the proprietary funds. The information in this Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City didn't expended any federal awards in the form of loans during the year ended June 30, 2022.
Title: 10% de minimus Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the City of Las Vegas (the City) and is presented on modified accrual basis of accounting, which is the same basis as was used to prepare the fund financial statements except for the proprietary funds. The information in this Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City did not elect to use the allowed 10% indirect cost rate.
Title: Federally Funded Insurance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the City of Las Vegas (the City) and is presented on modified accrual basis of accounting, which is the same basis as was used to prepare the fund financial statements except for the proprietary funds. The information in this Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City has no federally funded insurance.

Finding Details

Finding 2022-007
2022-007 Premium Pay (Other Non-Compliance) Assistance Listing Number 21.027 Federal Agency Department of Treasury Program Name Coronavirus State and Local Fiscal Recover Funds Award Number Multiple Award Year 2021-2022 Question Costs None CONDITION: During our testing over premium pay, we noted that 6 elected officials were incorrectly paid premium pay totaling $6,000. CRITERIA: Per 31 CFR Part 35 [RINI505-AC77], Coronavirus State and Local Fiscal Recovery Funds, Final Rule and 2 CFR ?200.318 (C) elected official are prohibited from using funds to pay themselves premium pay. The New Mexico Governmental Conduct Act states that public official at any level of New Mexico state or local government shall not take an official act primarily to improve the employees financial interest or position. EFFECT: The City is not in compliance with state and federal regulations. CAUSE: The City awarded Premium Pay to all City employees including elected officials. AUDITOR?S RECOMMENDATION: We recommend the City create internal controls to ensure that they review federal and state regulations prior to disbursements to ensure costs are allowable. We also recommend the City work with elected officials to create a corrective action plan to recoup the federal funds. MANAGEMENT RESPONSE: Initially premium payments were only made to paid staff. Management was unaware of the provisions in reference to elected officials not being able to receive premium pay so they requested premium pay for the elected officials at a later date. The City Manager has sent an email to all elected officials requesting that the funds be reimbursed to the City. At this time (3) three of the (6) six elected officials have reimbursed the City and the others have committed to do so as well. RESPONSIBLE PARTY: City Manager/Finance Director TIMELINE FOR CORRECTIVE ACTION: June 30, 2023
Finding 2022-007
2022-007 Premium Pay (Other Non-Compliance) Assistance Listing Number 21.027 Federal Agency Department of Treasury Program Name Coronavirus State and Local Fiscal Recover Funds Award Number Multiple Award Year 2021-2022 Question Costs None CONDITION: During our testing over premium pay, we noted that 6 elected officials were incorrectly paid premium pay totaling $6,000. CRITERIA: Per 31 CFR Part 35 [RINI505-AC77], Coronavirus State and Local Fiscal Recovery Funds, Final Rule and 2 CFR ?200.318 (C) elected official are prohibited from using funds to pay themselves premium pay. The New Mexico Governmental Conduct Act states that public official at any level of New Mexico state or local government shall not take an official act primarily to improve the employees financial interest or position. EFFECT: The City is not in compliance with state and federal regulations. CAUSE: The City awarded Premium Pay to all City employees including elected officials. AUDITOR?S RECOMMENDATION: We recommend the City create internal controls to ensure that they review federal and state regulations prior to disbursements to ensure costs are allowable. We also recommend the City work with elected officials to create a corrective action plan to recoup the federal funds. MANAGEMENT RESPONSE: Initially premium payments were only made to paid staff. Management was unaware of the provisions in reference to elected officials not being able to receive premium pay so they requested premium pay for the elected officials at a later date. The City Manager has sent an email to all elected officials requesting that the funds be reimbursed to the City. At this time (3) three of the (6) six elected officials have reimbursed the City and the others have committed to do so as well. RESPONSIBLE PARTY: City Manager/Finance Director TIMELINE FOR CORRECTIVE ACTION: June 30, 2023