Finding 10843 (2022-008)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-01-30
Audit: 14498
Organization: City of Santa Fe (NM)

AI Summary

  • Core Issue: The City is not submitting required financial and performance reports on time to the pass-through entity.
  • Impacted Requirements: This violates federal regulations and grant agreements that mandate timely reporting to ensure compliance with federal award management.
  • Recommended Follow-Up: Implement stronger internal controls to ensure timely submission of reports and regular reviews to prevent future delays.

Finding Text

2022-008 – Reporting (Significant Deficiency over Internal Controls over Compliance) Federal Program Information Federal Award Title and ALN: Hazard Mitigation Grant Program, 97.067 Federal Awarding Agency: Department of Homeland Security Pass-Through Agency: NM Department of Homeland Security and Emergency Management Federal Award ID Number: EMW-2019-SS-00083-S01-02; EMW-2020-SS-00127-S01-01 Federal Award Year: 2019, 2020 Condition: The City is not submitting financial and performance reports to the pass through entity on a timely basis. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per sub-recipient grant agreements, EMW-2019-SS-00083-S01 and EMW-2020-SS-0127-S01, from the State of New Mexico Department of Homeland Security, the City shall submit quarterly reports by the 30th of the month following the quarter end. Cause: The City did not have sufficient controls in place to ensure the timeliness of reports being submitted to the pass through entity. Questioned Cost: None Effect: Lack of proper review for timeliness of reports can result in improper reporting which could lead to disallowed costs. However, our audit disclosed no instances of unallowable costs.

Corrective Action Plan

Recommendation: We recommend the City strengthen the controls in place to provide assurance reports are submitted timely. Action Taken: The City agrees with this finding. Key vacancies and personnel changes within the City’s Emergency Management Department and the Finance Department during FY22 resulted in delays in securing approvals of quarterly report required for timely submissions. Staffing issues were resolved in FY22 and FY23, and the Finance Director and the Grants Manager are working with the Emergency Management Department to ensure timely review, approval, and submission of the required quarterly reports. Anticipated Completion Date: December 31, 2023 Responsible Official: Emily Oster-Finance Director, Brian Williams-Emergency Management Director, Cheryl James-Grants Manager

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 10837 2022-006
    Material Weakness Repeat
  • 10838 2022-007
    Material Weakness
  • 10839 2022-006
    Material Weakness Repeat
  • 10840 2022-007
    Material Weakness
  • 10841 2022-006
    Material Weakness Repeat
  • 10842 2022-007
    Material Weakness
  • 587279 2022-006
    Material Weakness Repeat
  • 587280 2022-007
    Material Weakness
  • 587281 2022-006
    Material Weakness Repeat
  • 587282 2022-007
    Material Weakness
  • 587283 2022-006
    Material Weakness Repeat
  • 587284 2022-007
    Material Weakness
  • 587285 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program #52 $649,362
97.067 Homeland Security Grant Program $398,798
20.106 Airport Improvement Program #54 $392,629
14.218 Community Development Block Grants/entitlement Grants $299,484
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $267,514
20.106 Airport Improvement Program #53 $211,845
20.205 Highway Planning and Construction $176,895
93.053 Nutrition Services Incentive Program $109,484
93.045 Special Programs for the Aging_title Iii, Part C-1, Nutrition Services $96,279
93.788 Opioid Str $81,133
10.693 Watershed Restoration and Enhancement Agreement Authority $75,066
93.052 National Family Caregiver Support, Title Iii, Part E $74,432
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $69,171
66.458 Capitalization Grants for Clean Water State Revolving Funds $62,936
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $50,749
20.507 Federal Transit_formula Grants $45,230
94.002 Retired and Senior Volunteer Program $37,587
93.045 Special Programs for the Aging_title Iii, Part C-2, Nutrition Services $32,418
94.011 Foster Grandparent Program $32,326
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $27,963
45.024 Promotion of the Arts_grants to Organizations and Individuals $15,000