FAC Explorer

Audit 289732

FY End
2023-06-30
Total Expended
$314.29M
Findings
8
Programs
14
Organization: New Mexico Early Childhood Education and Care Department (NM)
Year: 2023 Accepted: 2024-02-09
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
366723 2023-004 Significant Deficiency - H
366724 2023-005 Significant Deficiency - B
366725 2023-002 Material Weakness Yes L
366726 2023-003 Significant Deficiency Yes M
943165 2023-004 Significant Deficiency - H
943166 2023-005 Significant Deficiency - B
943167 2023-002 Material Weakness Yes L
943168 2023-003 Significant Deficiency Yes M

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $41.64M Yes 0
10.558 Child and Adult Care Food Program $36.79M - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $31.53M Yes 0
93.558 Temporary Assistance for Needy Families $18.77M - 0
84.181A Special Education-Grants for Infants and Families $3.24M Yes 2
84.425C Education Stabilization Fund $1.83M - 0
10.560 State Administrative Expenses for Child Nutrition $1.32M - 0
93.778 Medical Assistance Program $924,624 - 0
84.181X Family, Infant and Toddler with Disabilities-American Rescue Plan $773,661 Yes 0
93.434 Every Student Succeeds Act/preschool Development Grants $599,502 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $379,559 Yes 0
93.110 Maternal and Child Health Federal Consolidated Programs $229,841 - 0
93.600 Head Start $105,189 - 0
10.559 Summer Food Service Program for Children $54,405 - 0

Contacts

Name Title Type
QGCBDHY1BEL2 Carmel Pacheco-Aragon Auditee
5059018226 Laura Beltran-Schmitz Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the New Mexico Early Childhood Education and Care Department (the Department) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Department, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Department.
Title: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3 NONCASH ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Department did not receive any noncash assistance, loan guarantees, or insurance from federal services during the current fiscal year.
Title: Note 4 Reconciliation of Federal Revenue to the Schedule of Expenditures of Federal Awards Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Department has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Federal Expenditures per Schedule of Expenditures of Federal Awards $ 3 14,285,709 Deferred inflows of resources related to federal activity 6 ,166,583.00 $ 3 08,119,126 Federal Revenue per the Statement of Revenues, Expenditures, and Changes in Fund Balance 308,174,530.00 Unreconciled variance (55,404.00)

Finding Details

Finding 2023-004
2023 – 004 Period of Performance Federal Agency: US Department of Education Federal Program Name: Special Education - Grants for Infants and Families Assistance Listing Number: 84.181A Federal Award Identification Number and Year: H181X210125-21A & H181A210125 Award Period: 7/1/21-09/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Part 4 of the Federal Compliance Supplement states that costs under a grant should not be incurred after the period of performance end date. Condition: During our testing of 8 vouchers, 4 had costs incurred after the grant end date. Additionally, 1 voucher was not paid within the liquidation period of 120 days after the period of performance. Questioned costs: $32,998.27 Context: We tested 18 vouchers, 4 contained exceptions Cause: Management oversight with regard to recording the activity to the correct grant award. Effect: Noncompliance with period of performance Repeat Finding: No Recommendation: We recommend the program thoroughly review the dates on vouchers to ensure the activity is recorded to the right grant award based on the period of performance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-005
2023 – 005 Allowable Costs Federal Agency: US Department of Education Federal Program Name: Special Education - Grants for Infants and Families Assistance Listing Number: 84.181A Federal Award Identification Number and Year: H181X210125-21A & H181A210125 Award Period: 7/1/21-09/30/22 & 7/1/22-09/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Part 4 of the Federal Compliance Supplement and the IDEA Application says, "A state may charge rent, occupancy, or space maintenance costs as a direct cost to its IDEA Part C grant award, only if it indicates so in the Section IV.B.2, "Restricted Indirect Cost Rate/Cost Allocation Plan Information," of its IDEA Part C grant application and receives approval from the US Education Department in its grant award letter (34 CFR section 303.225(c) (3)). Condition: During our testing of 34 vouchers, 14 were for costs related to space maintenance. Questioned costs: $2,666.72 Context: We tested 34 vouchers, of which 14 contained exceptions Cause: Management oversight with regard to requiring explicit approval from the US Education Department in advance Effect: Noncompliance with allowable costs Repeat Finding: No Recommendation: We recommend the program review the compliance supplement and grant applications thoroughly to notate instances when federal approval is required in advance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
2023 – 002 FFATA Reporting Federal Agency: US Department of Health and Human Services Federal Program Name: Maternal, Infant, Early Childhood Home Visiting Assistance Listing Number: 93.870 Federal Award Identification Number and Year: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Award Period: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Type of Finding: Material Weakness in Internal Control and Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Transparency Act requires use of the information obtained in the subaward to complete reporting in the FSRS portal. Condition: Federal Funding Accountability and Transparency Act (FFATA) Reporting - while the program has an internal checklist to obtain the necessary information from the respective subrecipients to complete the FFATA reporting, the program did not complete the actual reporting during the State FY 2023. The program has furthered these processes in state FY24 to ensure this information is actually reported. Questioned costs: None Context: We tested 5 subrecipients; FFATA reporting was not completed for any. There are a total 8 subrecipients under this program. Cause: Lack of understanding that the data acquired then needed to be entered into the USSpending website. Effect: Noncompliance with reporting under the Transparency Act. Repeat Finding: Yes Recommendation: While the program did perform the annual SF425 reporting, we recommend the program ensure follow-through with the FFATA reporting requirement by entering the data collected from the subrecipients into the FSRF portal. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
2023 – 003 (Previously 2022-002) Subrecipient Monitoring Federal Agency: US Department of Health and Human Services Federal Program Name: Maternal, Infant, Early Childhood Home Visiting Assistance Listing Number: 93.870 Federal Award Identification Number and Year: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Award Period: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: The PTE must make the subrecipient aware of the award information required by 2 CFR section 200.331(a) sufficient for the PTE to comply with Federal statutes, regulations, and the terms and conditions of the award Condition: While the program has improved in its subrecipient monitoring efforts, the subaward agreements lack all required elements of a subaward. There were agreements included with all. Questioned costs: None Context: We tested 5 subrecipients; 4 agreements were incomplete Cause: Lack of knowledge of all required elements. Agreements contained some of the elements, but not all. Effect: Noncompliance with requirements of a subaward. Repeat Finding: Yes Recommendation: We recommend the program create an agreement template that contains the required elements of a subaward to distribute to its subreceipients Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-004
2023 – 004 Period of Performance Federal Agency: US Department of Education Federal Program Name: Special Education - Grants for Infants and Families Assistance Listing Number: 84.181A Federal Award Identification Number and Year: H181X210125-21A & H181A210125 Award Period: 7/1/21-09/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Part 4 of the Federal Compliance Supplement states that costs under a grant should not be incurred after the period of performance end date. Condition: During our testing of 8 vouchers, 4 had costs incurred after the grant end date. Additionally, 1 voucher was not paid within the liquidation period of 120 days after the period of performance. Questioned costs: $32,998.27 Context: We tested 18 vouchers, 4 contained exceptions Cause: Management oversight with regard to recording the activity to the correct grant award. Effect: Noncompliance with period of performance Repeat Finding: No Recommendation: We recommend the program thoroughly review the dates on vouchers to ensure the activity is recorded to the right grant award based on the period of performance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-005
2023 – 005 Allowable Costs Federal Agency: US Department of Education Federal Program Name: Special Education - Grants for Infants and Families Assistance Listing Number: 84.181A Federal Award Identification Number and Year: H181X210125-21A & H181A210125 Award Period: 7/1/21-09/30/22 & 7/1/22-09/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Part 4 of the Federal Compliance Supplement and the IDEA Application says, "A state may charge rent, occupancy, or space maintenance costs as a direct cost to its IDEA Part C grant award, only if it indicates so in the Section IV.B.2, "Restricted Indirect Cost Rate/Cost Allocation Plan Information," of its IDEA Part C grant application and receives approval from the US Education Department in its grant award letter (34 CFR section 303.225(c) (3)). Condition: During our testing of 34 vouchers, 14 were for costs related to space maintenance. Questioned costs: $2,666.72 Context: We tested 34 vouchers, of which 14 contained exceptions Cause: Management oversight with regard to requiring explicit approval from the US Education Department in advance Effect: Noncompliance with allowable costs Repeat Finding: No Recommendation: We recommend the program review the compliance supplement and grant applications thoroughly to notate instances when federal approval is required in advance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
2023 – 002 FFATA Reporting Federal Agency: US Department of Health and Human Services Federal Program Name: Maternal, Infant, Early Childhood Home Visiting Assistance Listing Number: 93.870 Federal Award Identification Number and Year: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Award Period: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Type of Finding: Material Weakness in Internal Control and Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Transparency Act requires use of the information obtained in the subaward to complete reporting in the FSRS portal. Condition: Federal Funding Accountability and Transparency Act (FFATA) Reporting - while the program has an internal checklist to obtain the necessary information from the respective subrecipients to complete the FFATA reporting, the program did not complete the actual reporting during the State FY 2023. The program has furthered these processes in state FY24 to ensure this information is actually reported. Questioned costs: None Context: We tested 5 subrecipients; FFATA reporting was not completed for any. There are a total 8 subrecipients under this program. Cause: Lack of understanding that the data acquired then needed to be entered into the USSpending website. Effect: Noncompliance with reporting under the Transparency Act. Repeat Finding: Yes Recommendation: While the program did perform the annual SF425 reporting, we recommend the program ensure follow-through with the FFATA reporting requirement by entering the data collected from the subrecipients into the FSRF portal. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
2023 – 003 (Previously 2022-002) Subrecipient Monitoring Federal Agency: US Department of Health and Human Services Federal Program Name: Maternal, Infant, Early Childhood Home Visiting Assistance Listing Number: 93.870 Federal Award Identification Number and Year: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Award Period: X10MC43597 - 9/1/2021-9/29/23 X10MC39703 - 9/30/2020-9/29/2022 X11MC41939 -05/01/21-09/30/23 6X11MC45479-01-02 - 12/31/21-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: The PTE must make the subrecipient aware of the award information required by 2 CFR section 200.331(a) sufficient for the PTE to comply with Federal statutes, regulations, and the terms and conditions of the award Condition: While the program has improved in its subrecipient monitoring efforts, the subaward agreements lack all required elements of a subaward. There were agreements included with all. Questioned costs: None Context: We tested 5 subrecipients; 4 agreements were incomplete Cause: Lack of knowledge of all required elements. Agreements contained some of the elements, but not all. Effect: Noncompliance with requirements of a subaward. Repeat Finding: Yes Recommendation: We recommend the program create an agreement template that contains the required elements of a subaward to distribute to its subreceipients Views of responsible officials: There is no disagreement with the audit finding.