2025-011 IDEA-B PAYROLL CONTROLS Federal Program: Special Education Cluster Federal Agency: U.S. Department of Education Pass-Through Agency: New Mexico Public Education Department Assistance Listing Number: 84.027,84.173 Type of Finding: Significant Deficiency, Other Non-Compliance Compliance Area: Allowable costs/cost principles Federal Award Year: 2025 Questioned Costs: None Condition There were 40 payroll disbursements related to teachers who received payroll coded to IDEA-B for which we were unable to obtain contract amounts / payrates for seven disbursements (6 teachers). Criteria The Codification of Statements on Auditing Standards (SAS AU) paragraph 110.03 states that the financial statements are Management’s responsibility. Management is responsible for adopting sound accounting policies, and for establishing and maintaining internal control that will, among other things, initiate, authorize, record, process, and report transactions (as well as events and conditions) consistent with Management’s assertions embodied in the financial statements. Effect Without complete and accurate supporting documentation and evidence of approval, the District cannot demonstrate the Special Education Cluster claims were accurate and compliant with federal requirements. This increases the risk of questioned costs, repayment of funds, and increased oversight by the pass-through agency. Cause The District did not have adequate processes in place to ensure documentation retention for all transactions.
2025-010 CHILD NUTRITION CLUSTER – MEAL COUNTS Federal Program: Child Nutrition Cluster Federal Agency: U.S. Department of Agriculture Pass-Through Agency: New Mexico Public Education Department Assistance Listing Number: 10.555, 10.582, 10.565 Type of Finding: Significant Deficiency, Other Non-Compliance Compliance Area: Reporting Federal Award Year: 2025 Questioned Costs: None Condition The School District did not maintain complete and properly approved supporting documentation for monthly Child Nutrition Program claims for reimbursement. Specifically, from 3 sampled months a total of days of 10 Claim Reports (by school) and noted evidence of review and approval of Meal Count Listings were not available. In addition, the Meal Count Listings did not contain signatures or other evidence demonstrating review and approval prior to claim submission. As a result, the School District could not demonstrate that claims submitted to the pass-through agency were accurate, complete, and properly reviewed. Criteria Title 7 CFR sections 210.8, 210.11, 220.11, 215.10, and 225.15 require School Food Authorities to submit monthly claims for reimbursement for meals and snacks served to eligible students. Federal requirements further require that claims be supported by accurate meal count records and appropriate documentation to ensure claims are complete, accurate, and reviewed prior to submission. Effect The federal program expenditures may be overstated. Cause The District did not have sufficient procedures in place to ensure that required reporting documentation was retained and that meal count data and claims were formally reviewed and approved prior to submission. Additionally, oversight at the school site level was not consistently enforced.
2025-012 LATE FILING OF THE SINGLE AUDIT REPORTING PACKAGE WITH THE FEDERAL AUDIT CLEARINGHOUSE (Significant Deficiency and Other Non-compliance) Title: All federal programs presented on SEFA Agency: U.S. Department of Justice, U.S Department of Education, U.S. Department of Agriculture, U.S. Department of Health and Human Services Pass Through: New Mexico Public Education Department Assistance Listings Number: All ALNs reported on SEFA Compliance Area: Other - Late Filing of Single Audit Reporting Package Federal Award Year: 2025 Questioned Costs: None Condition The District did not submit their Single Audit reporting package (financial statements, data collection form, and corrective action plan) within the required time period. Criteria 2 CFR 200.512 stipulates the requirement that the Single Audit reporting package 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 Effect Late reporting could cause additional oversight or restriction by certain State entities, including the District’s direct oversight entity (New Mexico Public Education Department). Cause Due to turnover, internal controls were not properly designed, executed, and monitored to ensure a timely preparation of reports and records for audit purposes. As a result, management did not comply with the submission requirements of 2 CFR 200.512