Audit 409767

Federal program information: Funding agency: All programs included in SEFA Title: All programs included in SEFA Federal Assistance Listing Number: All programs included in SEFA Compliance Requirement: Reporting Award Period: July 1, 2024 to June 30, 2025 Condition: The Town’s fiscal year ended June 30, 2025, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. 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 Town is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The Town experienced turnover in several departments 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 Town 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 single audit process and supporting documentation was delivered and audited in a timely manner. However, due to the federal government shutdown and other unforeseen circumstances experienced by the Town of Taos, the information was not provided by the federal clearinghouse due date. A few notable financial matters for the late submission of the audit were other items overseen by the Town such as capital assets and receivables related to the water/wastewater revenue and collection issues which were both as a result of staff turnover and a lack of institutional knowledge. The Town will ensure that the next year’s audit is performed timely as a whole in order for the next year’s audit reporting package to be submitted by the federal clearinghouse due date. Responsible Party: Grant Administrator, Finance Director and Deputy Finance Director Timeline: June 30, 2026