Title: NOTE 1 SCOPE OF AUDIT PURSUANT TO OMB UNIFORM GRANT GUIDANCE
Accounting Policies: All federal grant operations of Hobbs Municipal Schools (the “District”) are included in the scope of the Office of Management and Budget
(“OMB”) Uniform Grant Guidance audit (the “Single Audit”). The Single Audit was performed in accordance with the provisions of the OMB
Circular Compliance Supplement (Revised May 2024 the “Compliance Supplement”). Compliance testing of all requirements is described in the
Compliance Supplement, was performed for the grant programs noted below. These programs represent all federal award programs and other
grants with fiscal year 2024 cash and non-cash expenditures to ensure coverage of at least 20% (LOW risk auditee) of federally granted funds.
Actual coverage is approximately 36% of total cash and non-cash federal award program expenditures.
MAJOR FEDERAL PROGRAM ASSISTANCE NO. EXPENDITURES
Student Support and Academic Enrichment Program 84.424 $ 2 92,022
Special Education (IDEA) Cluster 84.027 1 ,911,598
COVID-19: CARES Act, CRRSA, & ARP 84.425D & 84.425U 3 ,727,743
Total $ 5,931,363
The District had two (2) federal programs considered to be a High-Risk Type A program for the year ended June 30, 2024.
The U.S. Department of Education is the District’s oversight agency for single audit.
Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District under
programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the
requirements of the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule presents only a selected portion
of the operations of the District, it is not intended to and does not present the financial position and changes in net position of the District. All
federal programs considered active during the year ended June 30, 2024, are reflected on the Schedule. An active federal program is defined as a
federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year
or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual
basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective
grant. Grant revenues for the Food Donation Program are based upon commodities received, at amounts per standard price listing, published
quarterly by the United States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and
loan or loan guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between expenditures
and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable
expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over reimbursable expenditure to date.
Generally, accrued or deferred balances covered by differences in the timing of cash receipts and expenditures will be reversed in the remaining
grant period.
De Minimis Rate Used: N
Rate Explanation: There District has not elected to use the 10% de minimis indirect cost. The District uses 2.79% indirect cost rate as determined by New Mexico
Public Education Department.
All federal grant operations of Hobbs Municipal Schools (the “District”) are included in the scope of the Office of Management and Budget
(“OMB”) Uniform Grant Guidance audit (the “Single Audit”). The Single Audit was performed in accordance with the provisions of the OMB
Circular Compliance Supplement (Revised May 2024 the “Compliance Supplement”). Compliance testing of all requirements is described in the
Compliance Supplement, was performed for the grant programs noted below. These programs represent all federal award programs and other
grants with fiscal year 2024 cash and non-cash expenditures to ensure coverage of at least 20% (LOW risk auditee) of federally granted funds.
Actual coverage is approximately 36% of total cash and non-cash federal award program expenditures.
MAJOR FEDERAL PROGRAM ASSISTANCE NO. EXPENDITURES
Student Support and Academic Enrichment Program 84.424 $ 2 92,022
Special Education (IDEA) Cluster 84.027 1 ,911,598
COVID-19: CARES Act, CRRSA, & ARP 84.425D & 84.425U 3 ,727,743
Total $ 5,931,363
The District had two (2) federal programs considered to be a High-Risk Type A program for the year ended June 30, 2024.
The U.S. Department of Education is the District’s oversight agency for single audit.
Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District under
programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the
requirements of the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule presents only a selected portion
of the operations of the District, it is not intended to and does not present the financial position and changes in net position of the District. All
federal programs considered active during the year ended June 30, 2024, are reflected on the Schedule. An active federal program is defined as a
federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year
or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual
basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective
grant. Grant revenues for the Food Donation Program are based upon commodities received, at amounts per standard price listing, published
quarterly by the United States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and
loan or loan guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between expenditures
and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable
expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over reimbursable expenditure to date.
Generally, accrued or deferred balances covered by differences in the timing of cash receipts and expenditures will be reversed in the remaining
grant period.
Title: NOTE 2 INDIRECT COSTS
Accounting Policies: All federal grant operations of Hobbs Municipal Schools (the “District”) are included in the scope of the Office of Management and Budget
(“OMB”) Uniform Grant Guidance audit (the “Single Audit”). The Single Audit was performed in accordance with the provisions of the OMB
Circular Compliance Supplement (Revised May 2024 the “Compliance Supplement”). Compliance testing of all requirements is described in the
Compliance Supplement, was performed for the grant programs noted below. These programs represent all federal award programs and other
grants with fiscal year 2024 cash and non-cash expenditures to ensure coverage of at least 20% (LOW risk auditee) of federally granted funds.
Actual coverage is approximately 36% of total cash and non-cash federal award program expenditures.
MAJOR FEDERAL PROGRAM ASSISTANCE NO. EXPENDITURES
Student Support and Academic Enrichment Program 84.424 $ 2 92,022
Special Education (IDEA) Cluster 84.027 1 ,911,598
COVID-19: CARES Act, CRRSA, & ARP 84.425D & 84.425U 3 ,727,743
Total $ 5,931,363
The District had two (2) federal programs considered to be a High-Risk Type A program for the year ended June 30, 2024.
The U.S. Department of Education is the District’s oversight agency for single audit.
Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District under
programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the
requirements of the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule presents only a selected portion
of the operations of the District, it is not intended to and does not present the financial position and changes in net position of the District. All
federal programs considered active during the year ended June 30, 2024, are reflected on the Schedule. An active federal program is defined as a
federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year
or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual
basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective
grant. Grant revenues for the Food Donation Program are based upon commodities received, at amounts per standard price listing, published
quarterly by the United States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and
loan or loan guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between expenditures
and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable
expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over reimbursable expenditure to date.
Generally, accrued or deferred balances covered by differences in the timing of cash receipts and expenditures will be reversed in the remaining
grant period.
De Minimis Rate Used: N
Rate Explanation: There District has not elected to use the 10% de minimis indirect cost. The District uses 2.79% indirect cost rate as determined by New Mexico
Public Education Department.
There District has not elected to use the 10% de minimis indirect cost. The District uses 2.79% indirect cost rate as determined by New Mexico
Public Education Department.
Title: NOTE 3 RECONCILIATION OF FEDERAL AWARDS TO EXPENDITURE OF FEDERAL AWARDS
Accounting Policies: All federal grant operations of Hobbs Municipal Schools (the “District”) are included in the scope of the Office of Management and Budget
(“OMB”) Uniform Grant Guidance audit (the “Single Audit”). The Single Audit was performed in accordance with the provisions of the OMB
Circular Compliance Supplement (Revised May 2024 the “Compliance Supplement”). Compliance testing of all requirements is described in the
Compliance Supplement, was performed for the grant programs noted below. These programs represent all federal award programs and other
grants with fiscal year 2024 cash and non-cash expenditures to ensure coverage of at least 20% (LOW risk auditee) of federally granted funds.
Actual coverage is approximately 36% of total cash and non-cash federal award program expenditures.
MAJOR FEDERAL PROGRAM ASSISTANCE NO. EXPENDITURES
Student Support and Academic Enrichment Program 84.424 $ 2 92,022
Special Education (IDEA) Cluster 84.027 1 ,911,598
COVID-19: CARES Act, CRRSA, & ARP 84.425D & 84.425U 3 ,727,743
Total $ 5,931,363
The District had two (2) federal programs considered to be a High-Risk Type A program for the year ended June 30, 2024.
The U.S. Department of Education is the District’s oversight agency for single audit.
Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District under
programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the
requirements of the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule presents only a selected portion
of the operations of the District, it is not intended to and does not present the financial position and changes in net position of the District. All
federal programs considered active during the year ended June 30, 2024, are reflected on the Schedule. An active federal program is defined as a
federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year
or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual
basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective
grant. Grant revenues for the Food Donation Program are based upon commodities received, at amounts per standard price listing, published
quarterly by the United States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and
loan or loan guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between expenditures
and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable
expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over reimbursable expenditure to date.
Generally, accrued or deferred balances covered by differences in the timing of cash receipts and expenditures will be reversed in the remaining
grant period.
De Minimis Rate Used: N
Rate Explanation: There District has not elected to use the 10% de minimis indirect cost. The District uses 2.79% indirect cost rate as determined by New Mexico
Public Education Department.
The differences between the federal awards received (Intergovernmental sources – federal) during the year ended June 30, 2024 and the federal
awards expended during the year are as follows:
BALANCE
Intergovernmental - federal sources $ 1 7,192,432
Indirect costs from federal programs ( 61,854)
Federal sources not available for current resources 9 68,190
Revenues received as vendor ( 1,929,457)
Total Expenditures of Federal Awards $ 1 6,169,311