FAC Explorer

Audit 333770

FY End
2024-06-30
Total Expended
$1.97M
Findings
2
Programs
1
Organization: New Mexico Land Conservancy (NM)
Year: 2024 Accepted: 2024-12-19
Auditor: Pulakos CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
515973 2024-001 Significant Deficiency - B
1092415 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
12.610 Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies $30,200 Yes 0

Contacts

Name Title Type
FMCZPHD6AF58 Megan Keller Auditee
5059863801 Ryan Thorpe 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 accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NMLC has elected not to use the 10% de minimus indirect cost rate for its federal programs. For its federal contract with the U.S. Department of Defense, NMLC negotiated and was approved for a 20% indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of NMLC 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 Uniform Guidance, Audits of States, Local Governments and Non‑Profit Organizations. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NMLC has elected not to use the 10% de minimus indirect cost rate for its federal programs. For its federal contract with the U.S. Department of Defense, NMLC negotiated and was approved for a 20% indirect cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NMLC has elected not to use the 10% de minimus indirect cost rate for its federal programs. For its federal contract with the U.S. Department of Defense, NMLC negotiated and was approved for a 20% indirect cost rate. NMLC has elected not to use the 10% de minimus indirect cost rate for its federal programs. For its federal contract with the U.S. Department of Defense, NMLC negotiated and was approved for a 20% indirect cost rate.

Finding Details

Finding 2024-001
Criteria and Condition: In a cost reimbursement award, only costs incurred are allowed to be billed for reimbursement. NMLC billed for certain payroll tax costs that were not incurred. Context: Audit procedures identified multiple instances where payroll taxes were billed, even though those payroll taxes are limited to earned income thresholds. Cause: The employer portion of payroll taxes are billed as a flat fifteen percent above gross wages which does not consider certain payroll taxes that are limited to certain thresholds based on the individuals cumulative earned income. For example, federal and state unemployment taxes. Effect: NMLC overbilled for certain payroll taxes that were not incurred. Recommendation: NMLC should implement procedures to allow for tracking of actual payroll taxes incurred for labor charged to the award ensuring that only costs incurred are billed. Planned Corrective Action: We agree with this finding and will create and implement additional internal controls to allow for tracking of actual payroll taxes incurred for labor charged to the award ensuring that only costs incurred are billed. Anticipated Completion Date: January 31, 2025. Responsible Contact Person: Megan Keller, Director of Finance and Operations
Finding 2024-001
Criteria and Condition: In a cost reimbursement award, only costs incurred are allowed to be billed for reimbursement. NMLC billed for certain payroll tax costs that were not incurred. Context: Audit procedures identified multiple instances where payroll taxes were billed, even though those payroll taxes are limited to earned income thresholds. Cause: The employer portion of payroll taxes are billed as a flat fifteen percent above gross wages which does not consider certain payroll taxes that are limited to certain thresholds based on the individuals cumulative earned income. For example, federal and state unemployment taxes. Effect: NMLC overbilled for certain payroll taxes that were not incurred. Recommendation: NMLC should implement procedures to allow for tracking of actual payroll taxes incurred for labor charged to the award ensuring that only costs incurred are billed. Planned Corrective Action: We agree with this finding and will create and implement additional internal controls to allow for tracking of actual payroll taxes incurred for labor charged to the award ensuring that only costs incurred are billed. Anticipated Completion Date: January 31, 2025. Responsible Contact Person: Megan Keller, Director of Finance and Operations