FAC Explorer

Audit 33764

FY End
2022-06-30
Total Expended
$5.92M
Findings
2
Programs
18
Organization: City of Rio Rancho, New Mexico (NM)
Year: 2022 Accepted: 2023-01-11
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31270 2022-002 Significant Deficiency - I
607712 2022-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $3.68M Yes 1
14.218 Community Development Block Grants/entitlement Grants $686,174 - 0
21.019 Coronavirus Relief Fund $593,072 - 0
97.067 Homeland Security Grant Program $343,585 - 0
16.710 Public Safety Partnership and Community Policing Grants $139,611 - 0
16.575 Crime Victim Assistance $100,370 - 0
20.600 State and Community Highway Safety $71,181 - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $61,704 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $59,936 - 0
97.042 Emergency Management Performance Grants $38,644 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $28,116 - 0
45.312 National Leadership Grants $25,243 - 0
10.555 National School Lunch Program $19,566 - 0
16.309 Law Enforcement Assistance_national Instant Criminal Background Check System $19,422 - 0
95.001 High Intensity Drug Trafficking Areas Program $18,088 - 0
16.301 Law Enforcement Assistance_fbi Crime Laboratory Support $9,981 - 0
97.044 Assistance to Firefighters Grant $9,816 - 0
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $6,686 - 0

Contacts

Name Title Type
KREVN82JSKX1 Carole Jaramillo Auditee
5058968761 Raul J. Anaya Auditor
No contacts on file

Notes to SEFA

Title: Note 5: Reconciliation of Federal Revenue Accounting Policies: Note 2: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Assistance Listing 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Note 4: The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR?200.414. Reconciliation of Federal Revenue:Federal Revenue per Statement of Revenue,Expenditures, and Changes in Fund Balance -Governmental Funds $ 5,385,198Federal Revenue per Statement of Revenue,Expenditures, and Changes in Net Position -Proprietary Funds 2,246,075Total Federal Revenue 7,631,273Less: Non-SEFA related Federal Contracts (2,246,075)Add: Unavailable Federal Revenue 536,028Add: Reconciling Items 404Total Federal Expenditures per SEFA $ 5,921,630
Title: Note 1: Basis of Presentation Accounting Policies: Note 2: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Assistance Listing 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Note 4: The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR?200.414. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Rio Rancho under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
Title: Note 3: Federal Assistance Listing Numbers Accounting Policies: Note 2: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Assistance Listing 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Note 4: The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR?200.414. The program titles and Assistance Listing numbers were obtained from the federal or passthrough grantors or the Assistance Listing section of the System for Award Management (SAM) at www.sam.gov.

Finding Details

Finding 2022-002
2022 ? 002 ? Suspension and Debarment Federal Agency: Department of Transportation Federal Program Name: Highway Planning & Construction Cluster Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 693JJ22130000 - 9/30/2019-06/30/2022; 693JJ21930000 - 02/12/2019-12/30/2023; 693JJ21930000 - 09/30/2019-12/31/2022; 693JJ22030000 - 02/24/2020-12/31/2023; 693JJ22130000 - 02/23/2021-06/30/2024; 69JJ22130000- 04/01/2021- 09/30/2023; 693JJ22130000 - 02/15/2021-02/28/2025; 693JJ22130000 - 09/24/2020-12/31/2022; 693JJ22230000 - 11/18/2021-07/31/2024; 693JJ22230000 - 10/10/2021-12/31/2024 Pass-Through Agency: New Mexico Department of Transportation Pass-Through Number(s) and Award Periods: CN A302130 - 9/30/2019-06/30/2022; CN A301321 -02/12/2019-12/30/2023; CN A301141 - 09/30/2019-12/31/2022; CN A301042 - 02/24/2020-12/31/2023; CN A300431 - 02/23/2021-06/30/2024; CN A300202 - 04/01/2021-09/30/2023; CNA300201 - 02/15/2021-02/28/2025 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Condition: During our testwork over Suspension and Debarment we noted that 4 of the 5 tested vendors did not have documentation that a check was performed prior to entering into covered transaction. Questioned costs: None Context: City of Rio Rancho entered into ten covered transactions that required applicable checks for suspension and debarment. Four of the five tested vendors were solicited under RFP. Per review of the contract file and through discussion with Purchasing Manager, the check for suspension and debarment is part of a checklist, but documentation of this was not maintained or able to be provided. None of the tested vendors were suspended or debarred currently or at the time of procurement. For this reason, there are no questioned costs. Cause: Management Oversight Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Recommendation: CLA recommends management implement a process to ensure that checks are performed and documented to conform with 180.300 of the CFR. Views of responsible officials and planned corrective actions: Management agrees with the finding. An additional form for the vendor to certify that they have not been debarred or suspended will be included in the formal RFP document as a requirement. In addition, an internal checklist will be utilized by purchasing staff during analysis of each proposal received under an RFP to document that staff has checked for debarment or suspension and the vendor is in good standing ensuring compliance with federal requirements.
Finding 2022-002
2022 ? 002 ? Suspension and Debarment Federal Agency: Department of Transportation Federal Program Name: Highway Planning & Construction Cluster Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 693JJ22130000 - 9/30/2019-06/30/2022; 693JJ21930000 - 02/12/2019-12/30/2023; 693JJ21930000 - 09/30/2019-12/31/2022; 693JJ22030000 - 02/24/2020-12/31/2023; 693JJ22130000 - 02/23/2021-06/30/2024; 69JJ22130000- 04/01/2021- 09/30/2023; 693JJ22130000 - 02/15/2021-02/28/2025; 693JJ22130000 - 09/24/2020-12/31/2022; 693JJ22230000 - 11/18/2021-07/31/2024; 693JJ22230000 - 10/10/2021-12/31/2024 Pass-Through Agency: New Mexico Department of Transportation Pass-Through Number(s) and Award Periods: CN A302130 - 9/30/2019-06/30/2022; CN A301321 -02/12/2019-12/30/2023; CN A301141 - 09/30/2019-12/31/2022; CN A301042 - 02/24/2020-12/31/2023; CN A300431 - 02/23/2021-06/30/2024; CN A300202 - 04/01/2021-09/30/2023; CNA300201 - 02/15/2021-02/28/2025 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Condition: During our testwork over Suspension and Debarment we noted that 4 of the 5 tested vendors did not have documentation that a check was performed prior to entering into covered transaction. Questioned costs: None Context: City of Rio Rancho entered into ten covered transactions that required applicable checks for suspension and debarment. Four of the five tested vendors were solicited under RFP. Per review of the contract file and through discussion with Purchasing Manager, the check for suspension and debarment is part of a checklist, but documentation of this was not maintained or able to be provided. None of the tested vendors were suspended or debarred currently or at the time of procurement. For this reason, there are no questioned costs. Cause: Management Oversight Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Recommendation: CLA recommends management implement a process to ensure that checks are performed and documented to conform with 180.300 of the CFR. Views of responsible officials and planned corrective actions: Management agrees with the finding. An additional form for the vendor to certify that they have not been debarred or suspended will be included in the formal RFP document as a requirement. In addition, an internal checklist will be utilized by purchasing staff during analysis of each proposal received under an RFP to document that staff has checked for debarment or suspension and the vendor is in good standing ensuring compliance with federal requirements.