Corrective Action Plans

2024-004 Single Audit Report Submission (Noncompliance) (Repeat/Modified): The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Director of Finance has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is accurate and financial operations sound. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Director of Finance.

2024-003 Staff responsible for the audit was on FMLA, along with other significant turnover in personnel, causing a late audit. This should be resolved and should not happen again in the future. We are also setting up controls to mitigate delays for the audit preparation. This should be resolved by the end of the 24-25 school year.

2023-008 Single Audit Report Submission (Noncompliance) (Repeat/Modified): The City is working to get current with the accounting processes and financials that would enable the timely performance of the annual financial audit. The Director of Finance has contracted a public accounting firm for assistance to accelerate this process and ensure future timely audit completion. In addition, the Finance Department has implemented multiple monthly and annual reconciliation processes to ensure the general ledger is accurate and financial operations sound. Training of City staff on completion of monthly processes is ongoing and will continue with oversight by the Director of Finance.

Management recognizes the importance of maintaining proper documentation for grant expenditures and has implemented the following corrective measures to address the deficiency: 1. Development of Comprehensive Documentation Guidelines: We have developed detailed guidelines outlining the specific documentation requirements for all grant-related expenditures. This includes mandatory documentation such as receipts, invoices, contracts, and timekeeping records, as well as detailed descriptions of each expense. 2. Centralized Repository for Grant Documentation: A centralized, secure digital repository has been established to store all grant-related documentation. All departments are now required to upload supporting documents immediately after incurring expenses, ensuring they are readily accessible for review and audit purposes. 3. Staff Training on Documentation Requirements: We have initiated a mandatory training program for all fiscal staff involved in grant management. This training covers the specific documentation and reporting requirements for federal, state, and private grants, emphasizing the importance of complete and accurate records. 4. Strengthened Review and Approval Process: We have enhanced the internal review process for grant expenditures. All grant-related transactions will be subject to a secondary review by the controller and Chief Financial Officer to ensure that the necessary supporting documents are included and expenditures are properly classified and documented. Management will closely monitor adherence to the new documentation policies and conduct quarterly audits to assess the completeness and accuracy of the records. Any discrepancies or missing documentation will be addressed promptly, and corrective actions will be taken to prevent recurrence. Management is fully committed to maintaining detailed and accurate records for all grant expenditures. The actions outlined above are designed to strengthen internal controls, ensure compliance with grant requirements, and support future audits with comprehensive documentation.

To address the identified weaknesses and strengthen internal controls over the preparation of the SEFA, management has initiated the following actions: 1. Establishment of Formal Policies and Procedures: We have developed and implemented a formal, written policy for the preparation and review of the SEFA. This policy outlines clear roles, responsibilities, and timelines for all departments involved in the process. 2. Centralization of Data Collection: We are centralizing the process of collecting expenditure data, which will be overseen by a designated team within the fiscal department. This will ensure consistency and accuracy in reporting across all departments. 3. Staff Training and Development: Key personnel involved in SEFA preparation are undergoing specialized training on federal, state, and city compliance requirements. This includes training on the proper classification of awards and expenditures. 4. Internal Review and Monitoring: A second layer of review has been introduced to verify the accuracy and completeness of the SEFA before it is submitted. A senior financial officer will perform this review, ensuring that any discrepancies are identified and corrected before submission. Management will implement ongoing monitoring to ensure adherence to the new policies and procedures. Quarterly reviews will be conducted to assess the accuracy of the data and the efficiency of the control measures. Management is committed to maintaining robust internal controls over the preparation of the SEFA to ensure the timely and accurate reporting of federal, state, and city awards. The actions outlined above are designed to prevent the recurrence of this deficiency and ensure full compliance with regulatory requirements.

Single Audit Report Submission Management is in agreement with this finding. The single audit was not submitted to the Federal Clearinghouse by the April 1st deadline, therefore, receipt of this finding is statutorily correct. With the Finance department now fully staffed, Rio Arriba County will ensure that the Single Audit report is submitted by the deadline to re-establish compliance.

2023-005 Single Audit Report Submission (Non-Compliance) • The College will timely submit its FY24 Audit Report in compliance with the Uniform Guidance. • The Controller is responsible for compliance

2022-009 Single Audit Report Submission (Noncompliance) Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The responsible party for this finding is the finance director.