FAC Explorer

Audit 316679

FY End
2023-12-31
Total Expended
$1.14M
Findings
2
Programs
10
Organization: New Mexico Rural Water Association (NM)
Year: 2023 Accepted: 2024-08-05
Auditor: Mp Group INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480493 2021-001 Significant Deficiency Yes B
1056935 2021-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
10.U01 Circuit Rider $388,741 Yes 1
10.761 Technical Assistance and Training Grants Ww $257,006 - 0
66.424 Section 1442 of Safe Drinking Water $136,876 - 0
10.761 Apprenticeship Program $127,436 - 0
10.U02 Ag Sourcewater $117,486 - 0
10.761 Energy Efficiency $87,123 - 0
66.446 Wastewater Tribal Community Technical Assistance Program $19,982 - 0
66.446 Technical Assistance for Small and Rural Decentralized Wastewater Systems $6,105 - 0
66.436 Private Waterwell Technical Assistance and Training Grants $1,770 - 0
66.446 Training and Technical Assistance for Wastewater Lagoons $1,040 - 0

Contacts

Name Title Type
FBLKCJ45MNJ3 William Conner Auditee
5058841031 Donna Peace Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures presented in the Schedule are reported on the 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. De Minimis Rate Used: Y Rate Explanation: The 10% de minimis cost rate is used by Association. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Association under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures presented in the Schedule are reported on the 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. De Minimis Rate Used: Y Rate Explanation: The 10% de minimis cost rate is used by Association. Expenditures presented in the Schedule are reported on the 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.
Title: Note 3. Indirect Cost Rate Accounting Policies: Expenditures presented in the Schedule are reported on the 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. De Minimis Rate Used: Y Rate Explanation: The 10% de minimis cost rate is used by Association. The Association has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2021-001
Criteria: Sound internal control policies should include controls over disbursements; disbursements should include, at a minimum, supporting documentation, and documentation of review and approval of the disbursement. The Association uses the current federal per diem rates for mileage reimbursement and overnight travel. Condition: During our control and compliance test work over cash disbursements related to Circuit Rider, we tested ten disbursements (checks), which included six related to travel reimbursements and four other disbursements. The six travel reimbursement checks consisted of twenty separate travel reimbursement requests for mileage and other per diem to be reimbursed at federal per diem rates. The other disbursements were for non-travel items purchased. The error was as follows:         One of the twenty travel reimbursements tested contained incorrect federal per diem rates. The total errors were less than $14 in which one employee was underpaid. Cause: Proper internal control procedures are not maintained to ensure federal mileage per diems are updated accurately and calculated correctly. Effect: The Association is not consistently updating current federal mileage per diem rates for travel reimbursements. Questioned Costs: None. Context: Management did not update federal quarterly per diem rates accurately. The rate was .65 per mile instead of .655 per mile on the one travel tested. Recommendation: We recommend that management continue to review current per diems to ensure the per diem rates for mileage are accurate. There should be a system to check the federal per diem rates periodically to ensure the rates are updated timely. Management View and Corrective Action Plan: It is management's policy to update and distribute travel reimbursement forms with new mileage and per diem rates the first of each calendar year, and at any other time the rates may change. Federal per diem and travel rates will be verified on a monthly basis to ensure that the most current rates are being used. Formulas in travel vouchers will be checked to make sure that they have not been changed and that they calculate properly. A staff person will review all travel vouchers to verify that rates and calculations are correct prior to the vouchers being paid. Federal Award Findings and Questioned Costs (Non Compliance): None.
Finding 2021-001
Criteria: Sound internal control policies should include controls over disbursements; disbursements should include, at a minimum, supporting documentation, and documentation of review and approval of the disbursement. The Association uses the current federal per diem rates for mileage reimbursement and overnight travel. Condition: During our control and compliance test work over cash disbursements related to Circuit Rider, we tested ten disbursements (checks), which included six related to travel reimbursements and four other disbursements. The six travel reimbursement checks consisted of twenty separate travel reimbursement requests for mileage and other per diem to be reimbursed at federal per diem rates. The other disbursements were for non-travel items purchased. The error was as follows:         One of the twenty travel reimbursements tested contained incorrect federal per diem rates. The total errors were less than $14 in which one employee was underpaid. Cause: Proper internal control procedures are not maintained to ensure federal mileage per diems are updated accurately and calculated correctly. Effect: The Association is not consistently updating current federal mileage per diem rates for travel reimbursements. Questioned Costs: None. Context: Management did not update federal quarterly per diem rates accurately. The rate was .65 per mile instead of .655 per mile on the one travel tested. Recommendation: We recommend that management continue to review current per diems to ensure the per diem rates for mileage are accurate. There should be a system to check the federal per diem rates periodically to ensure the rates are updated timely. Management View and Corrective Action Plan: It is management's policy to update and distribute travel reimbursement forms with new mileage and per diem rates the first of each calendar year, and at any other time the rates may change. Federal per diem and travel rates will be verified on a monthly basis to ensure that the most current rates are being used. Formulas in travel vouchers will be checked to make sure that they have not been changed and that they calculate properly. A staff person will review all travel vouchers to verify that rates and calculations are correct prior to the vouchers being paid. Federal Award Findings and Questioned Costs (Non Compliance): None.