Audit 307246

2023-009 (2022-006) CONTROLS OVER PURCHASES - EDUCATIONAL STABILIZATION FUND GRANT (MODIFIED AND REPEATED) Federal Program Information Type of Finding: Significant Deficiency Compliance Areas: Allowable costs and allowable activities Assistance Listings Number: 84.425 Award Period: July 1, 2022 to June 30, 2023 Federal Agency: U.S. Department of Education, passed through the New Mexico Public Education Department Federal Award ID Number: 5425D210023 Program Name: Education Stabilization Fund Questioned Costs: None Condition We tested 25 operating disbursements and noted that one disbursement had the purchase order created after the vendor invoice was created. We also noted two of the invoices did not include written authorization to pay the invoice. Management’s Progress in 2023: Management did not make improvement over this condition from the prior year. 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 Mexico Public Education Department’s purchasing guidance.

2023-009 (2022-006) CONTROLS OVER PURCHASES - EDUCATIONAL STABILIZATION FUND GRANT (MODIFIED AND REPEATED) Federal Program Information Type of Finding: Significant Deficiency Compliance Areas: Allowable costs and allowable activities Assistance Listings Number: 84.425 Award Period: July 1, 2022 to June 30, 2023 Federal Agency: U.S. Department of Education, passed through the New Mexico Public Education Department Federal Award ID Number: 5425D210023 Program Name: Education Stabilization Fund Questioned Costs: None Condition We tested 25 operating disbursements and noted that one disbursement had the purchase order created after the vendor invoice was created. We also noted two of the invoices did not include written authorization to pay the invoice. Management’s Progress in 2023: Management did not make improvement over this condition from the prior year. 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 Mexico Public Education Department’s purchasing guidance.