FAC Explorer

Audit 393044

FY End
2025-06-30
Total Expended
$902,225
Findings
1
Programs
3
Organization: Second Judicial District Court (NM)
Year: 2025 Accepted: 2026-03-20
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1181759 2025-004 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
64.035 VETERANS TRANSPORTATION PROGRAM $405,106 Yes 1
59.044 VETERANS OUTREACH PROGRAM $333,471 Yes 0
00.U01 Education Service (SAA) $163,648 Yes 0

Contacts

Name Title Type
UY3EPS1XNR75 Danelle Lucero Auditee
5058276311 Laura Beltran-Schmitz Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Department 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 the Schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations, Part 200, 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.
Expenditures shown in the Schedule are reported on the modified accrual 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 limited as to reimbursement.
The Department has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for the VBOC program.
The Department did not receive any federal noncash assistance during the year ended June 30, 2025.
The Department does not have any loans outstanding with the federal government at June 30, 2025.
The following is a reconciliation of expenditures reported on the Schedule to the expenditures reported in the governmental fund financial statements:

Finding Details

Finding 2025-004
Federal Agency: U.S. Veterans Department Federal Program Name: Veterans Transportation Program Assistance Listing Number: 64.035 Federal Award Identification Number and Year: 702-2023-HRTG-001: 9/15/2023-9/14/2024 702-2024-HRTG-001: 9/15/2024-9/14/2025 Type of finding:  Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per the grant agreement, "New Mexico Dept of Veterans Services will utilize the Grants for Transportation of Veterans in Highly Rural Areas to transport Veterans from the New Mexico counties of Catron, Cibola, Colfax, De Baca, Guadalupe, Harding, Hidalgo, Lincoln, Mora, Quay, San Miguel, Sierra, Socorro, Torrance, and Union to VA facilities and approved non-VA Care.". 38 C.F.R. § 17.700-17.730 further specifies that the grant is "to assist veterans in highly rural areas through innovative transportation services to travel to VA medical centers, and to otherwise assist in providing transportation services in connection with the provision of VA medical care to these veterans." This indicates that the service is specifically for Veterans that have medical appointments. Condition: 60 of the 60 beneficiaries tested did not have sufficient documentation to indicate the Department verified their appointments before providing transportation services. Management’s Progress for Repeat Finding: This is a repeated and modified finding. While the Department has improved its efforts, there are still opportunities for improvement to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements as well as compliance with Department policy. Questioned costs: N/A Context: This was identified during eligibility testing. Cause: The Program did not have sufficient documentation that the Department verified the beneficiaries’ appointment status before providing transportation services. Effect: Noncompliance with grant requirements and federal regulation, and possibly provided services to non-eligible persons. Repeat Finding: Yes Recommendation: We recommend that the Department assists the Program by implementing a system, along with appropriate policies, procedures and internal controls, to securely and accurately document the required information to verify the Veteran status and appointments of the Program's beneficiaries. View of responsible officials: The Department has identified the resource gaps affecting grant compliance. We have met with the grantor to present our findings and requested additional capabilities to validate Veteran status using existing program databases to successfully manage the program. Additional language in the grant scope will be provided by the grantor to ensure compliance moving forward. Corrective actions will be completed by June 30, 2025. We appreciate the opportunity to address the finding and are committed to maintaining the highest standards of compliance and performance.