Finding Text
CONDITION: During our testing, we noted the County was not performing timely drawdowns of Federal awards. CRITERIA: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the County, Federal drawdowns are completed quarterly with the reporting process. EFFECT: The auditor noted instances of non-compliance. Non-compliance results in delayed reimbursement of eligible Federal expenditures. CAUSE: The County did not establish or apply appropriate internal controls over federal funding requirements. RECOMMENDATION: We recommend that the County establish appropriate controls over federal monies in the future to ensure compliance with federal grant requirements. MANAGEMENT’S RESPONSE: Colfax County agreed to be the fiscal agent for a collaborative project involving several state and federal agencies within NM, CO, and KS along with private corporations including BNSF and AMTRAK. Colfax County did not have the staffing or cash flow necessary to facilitate such a large project. County Manager and Financial Specialist were not trained in Railroad project management. Changes in staff within the County Manager’s Office and private corporations as well as state and federal agencies resulted in change in requirements, poor communication, and delay in reporting ultimately resulting in disruption of reimbursement to the County. Colfax County worked with NM Department of Transportation and Federal Railroad Administration to collect project status information and submit all outstanding progress reports. To date Colfax County has been successful in maintaining open communication and receiving support from NMDOT and FRA. All reporting requirements are current and reimbursement has been issued to the County. RESPONSIBLE PARTY/TIMELINE TO CORRECT: County Manager’s Office has been able to establish open communication with key players in gathering important information used for reporting. Colfax County has also hired a Grant/Special Projects Manager to oversee and maintain all County grants and special projects. Timeline to correct will be June 30, 2024.