FAC Explorer

Audit 409781

FY End
2025-12-31
Total Expended
$1.03M
Findings
2
Programs
5
Organization: The New Mexico Farmers Marketing Association (NM)
Year: 2025 Accepted: 2026-08-25
Auditor: HINKLE + LANDERS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1227812 2025-002 Material Weakness Yes L
1227813 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.331 GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM $412,967 Yes 1
10.182 PANDEMIC RELIEF ACTIVITIES: LOCAL FOOD PURCHASE AGREEMENTS WITH STATES, TRIBES, AND LOCAL GOVERNMENTS $252,002 Yes 0
10.170 SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL $93,194 Yes 0
10.168 FARMERS MARKET PROMOTION PROGRAM $74,195 Yes 0
93.304 RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH $6,761 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 ("SEFA") presents the federal award activity of The New Mexico Farmers' Marketing Association, Inc. ("NMFMA") for the year ended December 31, 2025. The SEFA is presented on the accrual basis of accounting. Federal awards are recognized as expenditures when the activity related to the federal award occurs, in accordance with 2 CFR §200.502. Amounts reported in the SEFA are derived from and are a component of NMFMA’s accounting records and financial reporting. Federal awards received directly from federal agencies are presented as direct awards. Federal awards received through pass-through entities are identified by the pass-through entity name and the identifying number assigned by the pass-through entity.
None
None
NMFMA did not pass-through federal funds to subrecipients for the year ended December 31, 2025.
Federal granting agencies or their pass-through agencies are responsible for providing NMFMA 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 elected to use the de minimis indirect cost rate under 2 CFR §200.414(f). NMFMA used a de minimis indirect cost rate of 15 percent of modified total direct costs (10% for older multiyear grants).

Finding Details

Finding 2025-002
Type of Finding: (F) Significant Deficiency in Internal Control Over Compliance of Federal Awards (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, 2021-70030-35719 Award Period: Project period: multiple; Budget period: multiple Questioned Costs: None Statement of Condition NMFMA did not have adequate controls over the SF-425 reporting timeline. For two out of two SF-425 Federal Financial Reports tested, the annual and close-out reports were submitted after the due date (90 days for annual and close-out reports). Also, the annual report seems 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. CriteriaIn 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 and close-out 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 turnover. EffectNoncompliance with reporting requirements; risk of USDA sanctions; risk that SEFA and drawdown monitoring rely on inaccurate data. RecommendationEstablish 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 OfficialThe 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. TimelineTarget implementation September 30, 2026. Staff Responsible Executive Director