Audit 25727

2022-006 CONTROLS OVER PURCHASES - EDUCATIONAL STABILIZATION FUND GRANT Federal Program Information Type of Finding: Significant Deficiency Compliance Areas: Allowable costs and allowable activities Assistance Listings Number: 84.425 Award Period: July 1, 2021 to June 30, 2022 Program Name: Education Stabilization Fund Questioned Costs: None Condition: We tested 12 operating disbursements and noted that two disbursements had the purchase order created after the vendor invoice was created. We also noted four of the invoices did not include written authorization to pay the invoice. Criteria: New Mexico Public Education Department PSAB Supplement 13, Purchasing. Processing takes place after the purchase orders are created and approved. Vendor invoices are received and reviewed by the accounting department. The invoice is compared to the purchase order. Disbursement approval is separate of general ledger approval. Cause: Management did not appropriately plan a certain purchase to ensure that a purchase order was in place at the start of the purchase. Management did not approve certain payments in writing. Effect: The District is not in compliance with the new Public Education Department?s purchasing guidance. Recommendation: We recommend that the Department follow the guidance in NM PED?s PSAB Supplement 13, Purchasing.

2022-006 CONTROLS OVER PURCHASES - EDUCATIONAL STABILIZATION FUND GRANT Federal Program Information Type of Finding: Significant Deficiency Compliance Areas: Allowable costs and allowable activities Assistance Listings Number: 84.425 Award Period: July 1, 2021 to June 30, 2022 Program Name: Education Stabilization Fund Questioned Costs: None Condition: We tested 12 operating disbursements and noted that two disbursements had the purchase order created after the vendor invoice was created. We also noted four of the invoices did not include written authorization to pay the invoice. Criteria: New Mexico Public Education Department PSAB Supplement 13, Purchasing. Processing takes place after the purchase orders are created and approved. Vendor invoices are received and reviewed by the accounting department. The invoice is compared to the purchase order. Disbursement approval is separate of general ledger approval. Cause: Management did not appropriately plan a certain purchase to ensure that a purchase order was in place at the start of the purchase. Management did not approve certain payments in writing. Effect: The District is not in compliance with the new Public Education Department?s purchasing guidance. Recommendation: We recommend that the Department follow the guidance in NM PED?s PSAB Supplement 13, Purchasing.