Audit 302924

FY End
2023-06-30
Total Expended
$1.15M
Findings
4
Programs
6
Organization: City of Raton, New Mexico (NM)
Year: 2023 Accepted: 2024-04-09
Auditor: Sjt Group LLC

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Contacts

Name Title Type
EYH4J43XJL37 Michael Anne Antonucci Auditee
5754459551 Jeremiah Armijo Auditor
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Notes to SEFA

Title: Federal Award Identification Numbers Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal financial assistance programs of the City of Raton, New Mexico (the “City”), and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate. The federal granting agency is responsible for providing the City with the Assistance Listing Number (ALN) for each grant or contract. In cases where the federal granting agency did not provide the ALN to the City, other identifying numbers are presented on the Schedule. In addition, for pass-through awards, the pass-through granting agencies are responsible for providing the City with pass-through grantor numbers. In cases where the passthrough granting agency did not provide this number to the City, it is blank on the Schedule.
Title: Outstanding Bonds with the U.S. Department of Agriculture Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal financial assistance programs of the City of Raton, New Mexico (the “City”), and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate. In April 2006 and June 2020, the City issued bonds with the U.S. Department of Agriculture for improvements to its water and wastewater system. All funds under these bonds have been expended as of June 30, 2023. Bonds outstanding at June 30, 2023 totaled $3,650,332 and are included in long-term debt of business-type activities in the statement of net position. See Note 8 to the financial statements for more information regarding these bonds.

Finding Details

2023-001 – Late Submission of the Annual Federal Reporting Package Federal Program Information: Funding Agency: U.S. Department of the Treasury Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: July 1, 2022 – June 30, 2023 Criteria: 2 CFR 200.512 requires that the annual federal reporting package including the data collection form be submitted within nine months after the end of the audit period. Condition: The City did not submit the annual federal reporting package within nine months after June 30, 2023. Questioned Costs: None Cause: The City has experienced turnover in the accounting department and this caused a delay in the preparation of capital asset records related to governmental activities at year-end. Due to this delay, the City was not able to meet the annual federal reporting package submission deadline. Effect: The City is not in compliance with the annual federal reporting package deadline set forth by OMB Uniform Guidance. Auditor’s Recommendation: The City should improve processes to help ensure that financial statement balances are accurately reconciled to assist with the timely preparation and submission of the annual federal reporting package. Management’s Response: The City has successfully filled the critical vacancies in the accounting department and is looking to add one additional position before the end of the fiscal year. To address the need for financial reporting continuity, the City will cross-train accounting personnel to help ensure all financial reporting duties, including the preparation of capital asset records, are adequately covered. This will help ensure that the annual federal reporting package is completed and submitted within nine months after the end of the audit period. Responsible Party: Clerk / Treasurer Anticipated Completion: March 2024
2023-001 – Late Submission of the Annual Federal Reporting Package Federal Program Information: Funding Agency: U.S. Department of the Treasury Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: July 1, 2022 – June 30, 2023 Criteria: 2 CFR 200.512 requires that the annual federal reporting package including the data collection form be submitted within nine months after the end of the audit period. Condition: The City did not submit the annual federal reporting package within nine months after June 30, 2023. Questioned Costs: None Cause: The City has experienced turnover in the accounting department and this caused a delay in the preparation of capital asset records related to governmental activities at year-end. Due to this delay, the City was not able to meet the annual federal reporting package submission deadline. Effect: The City is not in compliance with the annual federal reporting package deadline set forth by OMB Uniform Guidance. Auditor’s Recommendation: The City should improve processes to help ensure that financial statement balances are accurately reconciled to assist with the timely preparation and submission of the annual federal reporting package. Management’s Response: The City has successfully filled the critical vacancies in the accounting department and is looking to add one additional position before the end of the fiscal year. To address the need for financial reporting continuity, the City will cross-train accounting personnel to help ensure all financial reporting duties, including the preparation of capital asset records, are adequately covered. This will help ensure that the annual federal reporting package is completed and submitted within nine months after the end of the audit period. Responsible Party: Clerk / Treasurer Anticipated Completion: March 2024
2023-001 – Late Submission of the Annual Federal Reporting Package Federal Program Information: Funding Agency: U.S. Department of the Treasury Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: July 1, 2022 – June 30, 2023 Criteria: 2 CFR 200.512 requires that the annual federal reporting package including the data collection form be submitted within nine months after the end of the audit period. Condition: The City did not submit the annual federal reporting package within nine months after June 30, 2023. Questioned Costs: None Cause: The City has experienced turnover in the accounting department and this caused a delay in the preparation of capital asset records related to governmental activities at year-end. Due to this delay, the City was not able to meet the annual federal reporting package submission deadline. Effect: The City is not in compliance with the annual federal reporting package deadline set forth by OMB Uniform Guidance. Auditor’s Recommendation: The City should improve processes to help ensure that financial statement balances are accurately reconciled to assist with the timely preparation and submission of the annual federal reporting package. Management’s Response: The City has successfully filled the critical vacancies in the accounting department and is looking to add one additional position before the end of the fiscal year. To address the need for financial reporting continuity, the City will cross-train accounting personnel to help ensure all financial reporting duties, including the preparation of capital asset records, are adequately covered. This will help ensure that the annual federal reporting package is completed and submitted within nine months after the end of the audit period. Responsible Party: Clerk / Treasurer Anticipated Completion: March 2024
2023-001 – Late Submission of the Annual Federal Reporting Package Federal Program Information: Funding Agency: U.S. Department of the Treasury Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: July 1, 2022 – June 30, 2023 Criteria: 2 CFR 200.512 requires that the annual federal reporting package including the data collection form be submitted within nine months after the end of the audit period. Condition: The City did not submit the annual federal reporting package within nine months after June 30, 2023. Questioned Costs: None Cause: The City has experienced turnover in the accounting department and this caused a delay in the preparation of capital asset records related to governmental activities at year-end. Due to this delay, the City was not able to meet the annual federal reporting package submission deadline. Effect: The City is not in compliance with the annual federal reporting package deadline set forth by OMB Uniform Guidance. Auditor’s Recommendation: The City should improve processes to help ensure that financial statement balances are accurately reconciled to assist with the timely preparation and submission of the annual federal reporting package. Management’s Response: The City has successfully filled the critical vacancies in the accounting department and is looking to add one additional position before the end of the fiscal year. To address the need for financial reporting continuity, the City will cross-train accounting personnel to help ensure all financial reporting duties, including the preparation of capital asset records, are adequately covered. This will help ensure that the annual federal reporting package is completed and submitted within nine months after the end of the audit period. Responsible Party: Clerk / Treasurer Anticipated Completion: March 2024