Finding Text
CONDITION: During our testing over the Tiger IX Grant, we noted the County did not submit the reports required by the grant agreement by the due dates. We noted the County’s quarterly progress reports were submitted on the following dates: • Period from 7/1/2022-9/30/2022 was submitted on 6/5/2023 • Period from 10/1/2022-12/31/2022 was submitted on 2/7/2023 • Period from 1/1/2023-3/31/2023 was submitted on 6/5/2023 • Period from 4/1/2023-6/30/2023 was submitted on 8/2/2023 CRITERIA: According to §200.302 Financial management of 2 CFR Part 200, the state’s and the other non-Federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. 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. Per the County’s grant agreement (agreement #69A3652040160TIINM) the County is required to submit quarterly project progress reports and recertifications on or before the 20th day of the first month of each calendar quarter and until Project Closeout. The County is also required to submit quarterly financial reports on or before the 30th day of each calendar quarter and until the period of performance end date covering the previous calendar year quarter. EFFECT: The auditor noted instances of non-compliance. Non-compliance results in delayed reimbursements 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.