FAC Explorer

Audit 361378

FY End
2023-06-30
Total Expended
$10.31M
Findings
4
Programs
2
Organization: United Way of Southwest New Mexico (NM)
Year: 2023 Accepted: 2025-07-02
Auditor: Clifford Ross & Cooper CPAS LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
570099 2023-001 Material Weakness Yes AM
570100 2023-002 Material Weakness Yes L
1146541 2023-001 Material Weakness Yes AM
1146542 2023-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
97.042 Emergency Management Performance Grants $10.31M Yes 2
97.024 Emergency Food and Shelter National Board Program $5,300 - 0

Contacts

Name Title Type
H77AVLJNZL46 Amanda Morales Auditee
5755247561 Denise Cooper Auditor
No contacts on file

Notes to SEFA

Title: Note A Accounting Policies: Accural Basis of Accounting De Minimis Rate Used: N Rate Explanation: The Organization elected to not use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of United Way of Southwest New Mexico under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirments of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Feederal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of United Way of Southwest New Mexico, it is not intended to and does not present the financial postion, changes in net assets, or cash flows of United Way of Southwest New Mexico.
Title: Note B Accounting Policies: Accural Basis of Accounting De Minimis Rate Used: N Rate Explanation: The Organization elected to not use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance 1. Expenditures reported on the Schedule are reported on the accural 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 reimbursements. 2. United Way of Southwest New Mexico has elected not use the 10% de minimums indirect cost rate as allowed under the Uniform Guidance. 3. Reconciliation of Schedule of Expenditures of Federal Awards to Financials Statements: Emergency Food & Shelter Program $5.300, Administration $44,490 Fiscal Agent Revenues $10,261,776. Total Federal Funds from page 6, $10,311,566. 4. Payments made to pass-through agencies totaled $8,792,519 during the fiscal yar ended June 30, 2023 as shown on the Statement of Functional Expenses as pass-through grant expenses.

Finding Details

Finding 2023-001
Item FA 2022-001 Material Weakness - Controls over Sub-Recipients: Statement of Condition: The Organization is new to Single Audit requirements. They did not realize when giving funds to sub-recipients, the Organization is required to monitor the funding is being used for its intended purpose. Some sub-recipients received payments in advance and there was no follow-up reporting on how the funding was spent. The Organization is also required to submit reports to the National Board on a timely basis. The final report was due to the National Board on November 17. 2022. Criteria - The Emergency Food and Shelter National Board Program Funding and Appliance Guidance on page 8 explains the Fiscal Agent/Fiscal Conduit - Supplemental Funding procedures required by the EFSP. Sound accounting practices demand proper controls of the funds released to sub-recipients. Questioned Costs - Unknown. Cause - The Organization is new to receiving large amount of federal funding and did not understand the federal and single audit requirements. Effect - The Organization cannot be totally sure that the funding was used for its intended purpose. Recommendation - We recommend the Organization continue its efforts to put in place follow-up procedures to ensure that proper monitoring of sub-recipients takes place and reporting procedures are in place for timely reporting. Response - Our Organization has developed a Monitoring Policy to have better oversight of our sub-recipients. The Chief Executive Officer will implement by June 30, 2025.
Finding 2023-002
Item FA 2022-002 Material Weakness - Submission of the Reporting Package to the Federal Government. Federal Agency: Department of Homeland Security CFDA No. 97.024 and 97.042. Statement of Condition - The requirment for submitting the single audit reporting package for the year ended June 30, 2023, was no later than March 31, 2024. The audit report was completed after March 31, 2024. As a result, the reporring package wa not submitted to the federal government on a timely basis. Critera - The federal Office of Management and Budget (OMB) Uniform Guidance 2 CFR 200.512(1) requires the audit package, and the data collection form shall be submitted thirty (30) days after receipt of the auditor's report, or nine months after the end of the fiscal year. Questioned Costs - Unknown. Cause - Management lacked a clear understanding in respect to the Single Audit reuirements. Effect - Non-compliance with federal requirements, such as the submission of the single audit report and the data collection form, could jeopardize future Organization funding from the federal government. Recommendation - We recommend the Organization devise a corrective action plan to meet their requirement of submitting the audit report to the Federal Clearininghouse no later than nine months after the end of the fiscal year, per the requirements of the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions - Our Organization intends on collaborating with our auditor to engage in a 2 year audit beginning immediately to ensure that we week the March 31st deadline requirement to the Federal Government.
Finding 2023-001
Item FA 2022-001 Material Weakness - Controls over Sub-Recipients: Statement of Condition: The Organization is new to Single Audit requirements. They did not realize when giving funds to sub-recipients, the Organization is required to monitor the funding is being used for its intended purpose. Some sub-recipients received payments in advance and there was no follow-up reporting on how the funding was spent. The Organization is also required to submit reports to the National Board on a timely basis. The final report was due to the National Board on November 17. 2022. Criteria - The Emergency Food and Shelter National Board Program Funding and Appliance Guidance on page 8 explains the Fiscal Agent/Fiscal Conduit - Supplemental Funding procedures required by the EFSP. Sound accounting practices demand proper controls of the funds released to sub-recipients. Questioned Costs - Unknown. Cause - The Organization is new to receiving large amount of federal funding and did not understand the federal and single audit requirements. Effect - The Organization cannot be totally sure that the funding was used for its intended purpose. Recommendation - We recommend the Organization continue its efforts to put in place follow-up procedures to ensure that proper monitoring of sub-recipients takes place and reporting procedures are in place for timely reporting. Response - Our Organization has developed a Monitoring Policy to have better oversight of our sub-recipients. The Chief Executive Officer will implement by June 30, 2025.
Finding 2023-002
Item FA 2022-002 Material Weakness - Submission of the Reporting Package to the Federal Government. Federal Agency: Department of Homeland Security CFDA No. 97.024 and 97.042. Statement of Condition - The requirment for submitting the single audit reporting package for the year ended June 30, 2023, was no later than March 31, 2024. The audit report was completed after March 31, 2024. As a result, the reporring package wa not submitted to the federal government on a timely basis. Critera - The federal Office of Management and Budget (OMB) Uniform Guidance 2 CFR 200.512(1) requires the audit package, and the data collection form shall be submitted thirty (30) days after receipt of the auditor's report, or nine months after the end of the fiscal year. Questioned Costs - Unknown. Cause - Management lacked a clear understanding in respect to the Single Audit reuirements. Effect - Non-compliance with federal requirements, such as the submission of the single audit report and the data collection form, could jeopardize future Organization funding from the federal government. Recommendation - We recommend the Organization devise a corrective action plan to meet their requirement of submitting the audit report to the Federal Clearininghouse no later than nine months after the end of the fiscal year, per the requirements of the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions - Our Organization intends on collaborating with our auditor to engage in a 2 year audit beginning immediately to ensure that we week the March 31st deadline requirement to the Federal Government.