Audit 364100

FY End
2024-06-30
Total Expended
$774,232
Findings
12
Programs
5
Organization: City of Espanola (NM)
Year: 2024 Accepted: 2025-08-12
Auditor: Cordova CPAS LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
573305 2024-004 - Yes L
573306 2024-004 - Yes L
573307 2024-004 - Yes L
573308 2024-004 - Yes L
573309 2024-004 - Yes L
573310 2024-005 Significant Deficiency Yes L
1149747 2024-004 - Yes L
1149748 2024-004 - Yes L
1149749 2024-004 - Yes L
1149750 2024-004 - Yes L
1149751 2024-004 - Yes L
1149752 2024-005 Significant Deficiency Yes L

Programs

Contacts

Name Title Type
J69EDK1JAME9 Patrick Varela Auditee
5057476026 Rufino Rodriguez Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the City of Española and is presented on the modified accrual basis of accounting, which is the same basis as was used to prepare the fund financial statements. The information in this Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the allowed 10% indirect cost rate.

Finding Details

2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐005 Reporting (2023‐009) Reporting (Significant Deficiency) (Repeat/Modified) Federal Program Information: Funding Agency: Department of the Justice Title: Public Safety Partnership and Community Policing Grants Assistance Listing Number: 16.710 Compliance Requirement: Reporting Award Year: July 1, 2023 to June 30, 2024 Condition: During our audit, we noted that the City did not submit all of its quarterly financial reports and one progress report in a timely manner. The City did make progress in this finding. In prior year, the City did not submit the proper reports, however, this year, all 4 quarterly reports were submitted, however, 3 out of 4 were late. Criteria: The City must submit the federal financial reports 30 days after the end of the end of each quarter (2 CFR 200.329 section (c)(1). Effect: The City was not in compliance with the reporting requirement; the City did not submit information in a timely manner for three quarters of the fiscal year. Questioned Costs: None Cause: The City had turnover that handled this duty during the time that the reports were due to be submitted and so it was not completed until the end of the fiscal year. Auditors’ Recommendation: We recommend that the City ensure that it has more than one position responsible for submitting these quarterly and any progress reports to the federal government to ensure that they are always completed even if one position is vacant. Agency’s Response: The City of acknowledges the audit finding regarding the untimely submission of reporting for the Cops Hiring program. This was a result of turnover, and the new grant manager was not hired until the middle of fiscal year 2024. The Procurement officer, who manages grants, as well as the Finance Director, have prioritized compliance with federal reporting requirements. To prevent future occurrences, the Finance Department has implemented internal controls ensuring multiple staff members are responsible for federal reporting. Specifically, both the Finance Director and the Financial Analyst now share the responsibility and authority to complete and submit these annual reports. This new process ensures continuity in reporting, even in the event of staff turnover, and strengthens the City’s commitment to compliance with federal funding requirements. Additionally, the Finance Director oversees this responsibility so there are now multiple controls to ensure timely completion. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐004 (2022‐009) Single Audit Report Submission (Other Non‐compliance) (Repeat/Modified) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The City’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. The City did not make progress on this finding in 2024. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Finance Director has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is completed timely and accurately. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Finance Director. Responsible Parties: The Director of Finance. Timeline: June 30, 2025
2024‐005 Reporting (2023‐009) Reporting (Significant Deficiency) (Repeat/Modified) Federal Program Information: Funding Agency: Department of the Justice Title: Public Safety Partnership and Community Policing Grants Assistance Listing Number: 16.710 Compliance Requirement: Reporting Award Year: July 1, 2023 to June 30, 2024 Condition: During our audit, we noted that the City did not submit all of its quarterly financial reports and one progress report in a timely manner. The City did make progress in this finding. In prior year, the City did not submit the proper reports, however, this year, all 4 quarterly reports were submitted, however, 3 out of 4 were late. Criteria: The City must submit the federal financial reports 30 days after the end of the end of each quarter (2 CFR 200.329 section (c)(1). Effect: The City was not in compliance with the reporting requirement; the City did not submit information in a timely manner for three quarters of the fiscal year. Questioned Costs: None Cause: The City had turnover that handled this duty during the time that the reports were due to be submitted and so it was not completed until the end of the fiscal year. Auditors’ Recommendation: We recommend that the City ensure that it has more than one position responsible for submitting these quarterly and any progress reports to the federal government to ensure that they are always completed even if one position is vacant. Agency’s Response: The City of acknowledges the audit finding regarding the untimely submission of reporting for the Cops Hiring program. This was a result of turnover, and the new grant manager was not hired until the middle of fiscal year 2024. The Procurement officer, who manages grants, as well as the Finance Director, have prioritized compliance with federal reporting requirements. To prevent future occurrences, the Finance Department has implemented internal controls ensuring multiple staff members are responsible for federal reporting. Specifically, both the Finance Director and the Financial Analyst now share the responsibility and authority to complete and submit these annual reports. This new process ensures continuity in reporting, even in the event of staff turnover, and strengthens the City’s commitment to compliance with federal funding requirements. Additionally, the Finance Director oversees this responsibility so there are now multiple controls to ensure timely completion. Responsible Parties: The Director of Finance. Timeline: June 30, 2025