Finding 1104805 (2024-009)

2024-009 (2022-006)CONTROLS OVER PURCHASES - EDUCATIONAL STABILIZATION FUND GRANT (MODIFIED AND REPEATED) Funding agency:U.S. Department of Education, passed through the New Mexico Public Education Department Federal Program Title and Assistance Listing Number: COVID-19 Education Stabilization Fund - 84.425 Federal Award ID Number: 5425D210023 Award Year:July 1, 2023 to June 30, 2024 Type of Finding: Significant Deficiency Compliance Area: Allowable costs and allowable activities Question Costs: None Condition We tested 27 operating disbursements and noted that four disbursements were missing purchase orders. After-the-fact purchase orders could not be generated from the previous general ledger package. Management's Progress in 2024: Management did not make improvement over this condition from the prior year. Criteria New Mexico Public Education Department PSAB Supplement 13, Purchasing. Processing takes place after the purchase orders are created and approved. Vendor invoices are received and reviewed by the accounting department. The invoice is compared to the purchase order. Disbursement approval is separate of general ledger approval. Effect The District is not in compliance with the New Mexico Public Education Department's purchasing guidance. Cause Management did not appropriately plan a certain purchase to ensure that a purchase order generated at the start of the purchase.