Audit 367156

FY End

2024-12-31

Total Expended

$1.74M

Findings

3

Programs

6

Organization: The New Mexico Farmers Marketing Association (NM)

Year: 2024 Accepted: 2025-09-23

Auditor: 850232815

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1154250	2024-002	Material Weakness	Yes	L
1154251	2024-002	Material Weakness	Yes	L
1154252	2024-002	Material Weakness	Yes	L

ALN	Program	Spent	Major	Findings
10.177	Regional Food System Partnerships	$439,550	Yes	0
10.182	Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments	$322,710	Yes	0
10.170	Specialty Crop Block Grant Program - Farm Bill	$129,652	Yes	0
10.168	Farmers Market Promotion Program	$97,632	Yes	0
10.331	Gus Schumacher Nutrition Incentive Program	$34,124	Yes	1
93.304	Racial and Ethnic Approaches to Community Health	$2,019	Yes	0

Contacts

Name	Title	Type
SPMAAAJPWV84	Denise Miller	Auditee
5059834010	Farley Vener	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of NMFMA and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

None

The New Mexico Farmers' Marketing Association did not pass-through federal funds to subrecipients for the year ended December 31, 2024.

Federal granting agencies or their pass-through agencies are responsible for providing New Mexico Farmers' Marketing Association with the Assistance Listing Numbers for each grant or contract. In cases where a federal granting agency did not provide the Assistance Listing Numbers, other identifying numbers are presented on the schedule of expenditures of federal awards, if available. In addition, for pass-through awards, the pass-through granting agencies are responsible for providing the organization with the Assistance Listing Numbers as well as pass-through grantor numbers. In cases where the pass-through granting agency did not provide this number to the organization, it is noted as "NA" (not available) on the schedule of expenditures of federal awards.

NMFMA used the 10 percent de minimis indirect cost rate.

Finding Details

Finding 2024-002

2024-002 [2023-002]—SF 425 Reporting • Type of Finding:o (F) Significant Deficiency in Internal Control Over Compliance of Federal Awards o (G) Instances of Noncompliance related to Federal Awards • Federal Agency: United States Department of Agriculture • Federal Program Name: Food Insecurity Nutrition Incentive Grants Program • Assistance Listing Number: 10.331 • Federal Award Identification Number and Year: 2022-70423-38069, 2020-70030-33124, 2021-70030-35719• Award Period: Project period: multiple; Budget period: multiple • Questioned Costs: NoneStatement of ConditionNMFMA did not have adequate controls over the SF-425 reporting timeline. For two out of the three SF-425 Federal Financial Reports tested, the annual reports were submitted after the due date (90 days for annual reports). Also, the reports seem to have some clerical errors and the amounts reported did not match the general ledger for the period reported, due to markets payments being reconciled late. The difference is immaterial, and client will adjust in the next report. Criteria In accordance with 2 CFR 200.327 (Financial Reporting) and award terms requiring SF-425 is required to be submitted for the Food Insecurity Nutrition Incentive Grants program. Recipients use the SF-425 as a standardized format to report expenditures under Federal awards, as well as, when applicable, cash status. The due dates are 30 days after the end of the reporting period for quarterly reports, and 90 days after the end of the reporting period for the annual reports. Also, the reports need to be reviewed for accuracy and completeness.CauseNMFMA has not properly implemented a formal reporting calendar, responsibility matrix, or documented pre-submission tie-out/review due to staff turnoverEffect Noncompliance with reporting requirements; risk of USDA sanctions; risk that SEFA and drawdown monitoring rely on inaccurate data. Recommendation Establish an SF-425 compliance calendar with automated reminders; assign preparer and independent reviewer roles; perform a documented tie-out (SF-425 to GL, bank, and SEFA) with sign-offs before submission; NMFMA staff should improve internal controls by implementing reminders with the due dates of the reports and reviewing the accuracy of the reports before submission. View of Responsible Official The Executive Director will take action to make sure USDA reports are filed on time. The ED will work with the Finance Director and other accounting staff to ensure deadlines are met.Timeline Target implementation September 30, 2025. Staff Responsible Executive Director

Finding 2024-002

2024-002 [2023-002]—SF 425 Reporting • Type of Finding:o (F) Significant Deficiency in Internal Control Over Compliance of Federal Awards o (G) Instances of Noncompliance related to Federal Awards • Federal Agency: United States Department of Agriculture • Federal Program Name: Food Insecurity Nutrition Incentive Grants Program • Assistance Listing Number: 10.331 • Federal Award Identification Number and Year: 2022-70423-38069, 2020-70030-33124, 2021-70030-35719• Award Period: Project period: multiple; Budget period: multiple • Questioned Costs: NoneStatement of ConditionNMFMA did not have adequate controls over the SF-425 reporting timeline. For two out of the three SF-425 Federal Financial Reports tested, the annual reports were submitted after the due date (90 days for annual reports). Also, the reports seem to have some clerical errors and the amounts reported did not match the general ledger for the period reported, due to markets payments being reconciled late. The difference is immaterial, and client will adjust in the next report. Criteria In accordance with 2 CFR 200.327 (Financial Reporting) and award terms requiring SF-425 is required to be submitted for the Food Insecurity Nutrition Incentive Grants program. Recipients use the SF-425 as a standardized format to report expenditures under Federal awards, as well as, when applicable, cash status. The due dates are 30 days after the end of the reporting period for quarterly reports, and 90 days after the end of the reporting period for the annual reports. Also, the reports need to be reviewed for accuracy and completeness.CauseNMFMA has not properly implemented a formal reporting calendar, responsibility matrix, or documented pre-submission tie-out/review due to staff turnoverEffect Noncompliance with reporting requirements; risk of USDA sanctions; risk that SEFA and drawdown monitoring rely on inaccurate data. Recommendation Establish an SF-425 compliance calendar with automated reminders; assign preparer and independent reviewer roles; perform a documented tie-out (SF-425 to GL, bank, and SEFA) with sign-offs before submission; NMFMA staff should improve internal controls by implementing reminders with the due dates of the reports and reviewing the accuracy of the reports before submission. View of Responsible Official The Executive Director will take action to make sure USDA reports are filed on time. The ED will work with the Finance Director and other accounting staff to ensure deadlines are met.Timeline Target implementation September 30, 2025. Staff Responsible Executive Director

Finding 2024-002

2024-002 [2023-002]—SF 425 Reporting • Type of Finding:o (F) Significant Deficiency in Internal Control Over Compliance of Federal Awards o (G) Instances of Noncompliance related to Federal Awards • Federal Agency: United States Department of Agriculture • Federal Program Name: Food Insecurity Nutrition Incentive Grants Program • Assistance Listing Number: 10.331 • Federal Award Identification Number and Year: 2022-70423-38069, 2020-70030-33124, 2021-70030-35719• Award Period: Project period: multiple; Budget period: multiple • Questioned Costs: NoneStatement of ConditionNMFMA did not have adequate controls over the SF-425 reporting timeline. For two out of the three SF-425 Federal Financial Reports tested, the annual reports were submitted after the due date (90 days for annual reports). Also, the reports seem to have some clerical errors and the amounts reported did not match the general ledger for the period reported, due to markets payments being reconciled late. The difference is immaterial, and client will adjust in the next report. Criteria In accordance with 2 CFR 200.327 (Financial Reporting) and award terms requiring SF-425 is required to be submitted for the Food Insecurity Nutrition Incentive Grants program. Recipients use the SF-425 as a standardized format to report expenditures under Federal awards, as well as, when applicable, cash status. The due dates are 30 days after the end of the reporting period for quarterly reports, and 90 days after the end of the reporting period for the annual reports. Also, the reports need to be reviewed for accuracy and completeness.CauseNMFMA has not properly implemented a formal reporting calendar, responsibility matrix, or documented pre-submission tie-out/review due to staff turnoverEffect Noncompliance with reporting requirements; risk of USDA sanctions; risk that SEFA and drawdown monitoring rely on inaccurate data. Recommendation Establish an SF-425 compliance calendar with automated reminders; assign preparer and independent reviewer roles; perform a documented tie-out (SF-425 to GL, bank, and SEFA) with sign-offs before submission; NMFMA staff should improve internal controls by implementing reminders with the due dates of the reports and reviewing the accuracy of the reports before submission. View of Responsible Official The Executive Director will take action to make sure USDA reports are filed on time. The ED will work with the Finance Director and other accounting staff to ensure deadlines are met.Timeline Target implementation September 30, 2025. Staff Responsible Executive Director