2025-003 — LATE DATA COLLECTION FORM SUBMISSION Type of Finding: (G) Instance of Non-compliance related to Federal Awards and (H) Other Non-compliance Required to be Reported per Section 12-6-5 NMSA 1978 Funding Agency: U.S. Department of the Treasury Program: COVID 19 - Coronavirus State & Local Fiscal Recovery Fund AL #: 21.027 Award #: Not Applicable, Not Available, and CSLFRF-DFA_DAC-22-ZG1024 Award Period: July 16, 2024 – December 31, 2026, June 23, 2024 - October 31, 2026, and October 5, 2022 – June 30, 2025 Questioned Costs: None Funding Agency: U.S. Department of Homeland Security Program: Staffing for Adequate Fire and Emergency Response (SAFER) Grant AL #: 97.083 Award #: FEMA EWM-2021-FF-00696 and FEMA EMW-2022-FF-01079 Award Period: June 23, 2023 – June 24, 2027, March 13, 2024 – March 27, 2027 Questioned Costs: None Condition For the County’s year ended June 30, 2025, the data collection form was not submitted to the Federal Audit clearinghouse database by March 31, 2026. Criteria Per 2 CFR 200.512(a)(1), Report Submission: The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause The County’s implementation of the new ERP system resulted in challenges related to system configuration, data conversion, and staff familiarity with the new system. Additionally, the County experienced significant staffing changes within the Finance Department during the transition period, which contributed to delays in completing reconciliations, reviewing accounting records, and finalizing financial information in a timely manner. Effect Not submitting the data collection form denies access to the public and grantor agencies which could lead in loss of funding needed. Recommendation The County should work with the auditors to ensure the audit is submitted within a time frame that allows the data collection form to be submitted prior to the nine-month period following the close of the fiscal year.
2025-004 — NONCOMPLIANCE WITH QUARTERLY REPORTING REQUIREMENTS Type of Finding: (F) Significant Deficiency in Internal Control Over Compliance of Federal Awards and (G) Instance of Non-compliance related to Federal Awards Funding Agency: U.S. Department of the Treasury Pass-through Entity: New Mexico Department of Finance and Administration (NMDFA) Program: COVID 19 - Coronavirus State & Local Fiscal Recovery Fund AL #: 21.027 Award #: CSLFRF-DFA_DAC-22-ZG1024 Award Period: October 5, 2022 – June 30, 2025 Type of Compliance Requirement: Reporting Questioned Costs: None Condition For the audit period, the Jetport was unable to provide copies of the required quarterly report workbooks and/or evidence of submission to NMDFA (e.g., email confirmations, portal confirmations, or other documentation) for the quarters ended: September 30, 2024, December 31, 2024, March 31, 2025, and June 30, 2025. As a result, we could not verify that required quarterly reporting was completed and submitted timely in accordance with the subaward requirements. Criteria The NMDFA subaward agreement requires subrecipients to complete and submit the CSLFRF Subrecipient Quarterly Report Workbook to NMDFA within ten (10) days after quarter-end (September, December, March, and June). In addition, non-federal entities must establish and maintain effective internal control over federal awards and retain records sufficient to demonstrate compliance with federal award requirements. Cause The grant administrator responsible for the project retired, and current staff were unable to locate historical records related to the quarterly reports. Additionally, there appears to have been insufficient record retention and oversight procedures to ensure continuity of compliance during personnel transitions. Effect The lack of documentation supporting quarterly reporting limits transparency and accountability over the use of federal funds and increases the risk that required reporting was incomplete, inaccurate, or untimely. It also impairs the pass-through entity’s ability to support its reporting and monitoring responsibilities. Recommendation We recommend Jetport strengthen its internal controls over grant compliance by implementing formal procedures to ensure timely preparation, review, and submission of all required reports. Implement formal grant reporting controls including: (1) a compliance calendar with due dates; (2) documented supervisory review and sign-off prior to submission; (3) centralized electronic retention of submitted reports and submission evidence; and (4) cross-training/transition procedures for key grant compliance roles.