Finding 1181616 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-19
Audit: 392879
Organization: Second Judicial District Court (NM)

AI Summary

  • Core Issue: Significant deficiency in internal controls led to late submission of required financial reports for the HIDTA program.
  • Impacted Requirements: Non-compliance with Uniform Guidance and HIDTA program terms regarding timely reporting of financial reports (SF-425).
  • Recommended Follow-Up: Implement a centralized reporting system with automated reminders and a compliance dashboard to ensure 100% on-time submissions.

Finding Text

Type of Finding (F) Significant Deficiency in Internal Control Over Compliance of Federal Awards (G) Instance of Non-Compliance Related to Federal Awards Programs Affected Federal Agencies: U.S. Executive Office of the President Title: High Intensity Drug Trafficking Areas Program (HIDTA) ALNs: 95.001 Award #s: G24SN0005A Compliance Requirement: Reporting Award Period: 01/01/2024-12/31/2025. Questioned Costs: None Noted Compliance Requirement—Reporting Condition During FY2025, the Department submitted certain required reports after their due dates: • HIDTA (95.001): 2 of 4 SF-425s were filed late as follows: due dates: 10/30/2024, 1/31/2025 submission dates: 11/15/2024, 2/3/2025 Criteria The Uniform Guidance requires timely submission of financial reports (FFR/SF-425) Financial reports must be submitted no later than 30 days after quarterly/semiannual periods and 90 days after annual periods, with the final financial report due within 120 days after the period of performance. Program terms for HIDTA additionally require SF-425s and periodic progress reports. Cause The Department lacked a centralized reporting calendar and monitoring control to track due dates across awards. Effect/Potential Effect Noncompliance with award terms and Uniform Guidance reporting timeliness. Risks include delayed reimbursements, potential enforcement actions, or adverse program decisions. Recommendation The Grants Accounting Manager should implement an entity-wide reporting controls: (1) maintain a system-based calendar of all SF-425 and progress-report due dates by award; (2) automated reminders at 30/10/3 days pre-due; (3) preparer checklist with documented supervisory review; (4) monthly compliance dashboard to executive management; (5) evidence retained (calendar export, emails, review sign-offs). Success criteria: 100% on-time submissions for two consecutive quarters.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions Management concurs with the finding. The Department will fully implement the proposed entitywide reporting controls. The Grant Management Bureau will lead the implementation of the following measures to strengthen reporting compliance: • Federal Grant Tracker/Checklist: An existing grant tracking spreadsheet will be utilized to monitor all federal grants and milestone dates, including SF-425 financial reports and progress-report due dates by award. The tracker will be maintained in a shared file accessible to grant managers and analysts. • Automated Reminders: Automated email alerts will be reviewed against the Federal Grant Tracker to ensure all awards are captured and deadlines are met. • Preparer Verification and Supervisory Review: Additional information fields will be incorporated into the Federal Grant Tracker to verify completeness and accuracy of each submission, along with documented supervisory review and approval. • Monthly Compliance Updates: A monthly summary will be presented to executive management, highlighting upcoming deadlines, submission status, and any exceptions. This information will be documented within the Federal Grant Tracker. • Evidence Retention: Supporting documentation, including SF-425 due dates and analyst/manager approval dates, will be recorded in the Federal Grant Tracker and retained for audit and verification purposes. The effectiveness of these measures will be assessed by achieving 100% on-time submissions for two consecutive quarters. We are committed to meeting this objective and ensuring consistent, timely, and accurate grant reporting across the organization. The Department expects to fully implement these measures by December 31, 2025, with implementation oversight assigned to the Chief Financial Officer and Grants Management Bureau Manager.

Categories

Reporting

Other Findings in this Audit

  • 1181615 2025-006
    Material Weakness Repeat
  • 1181617 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.218 MOTOR CARRIER SAFETY ASSISTANCE $5.43M
20.237 MOTOR CARRIER SAFETY ASSISTANCE HIGH PRIORITY ACTIVITIES GRANTS AND COOPERATIVE AGREEMENTS $2.36M
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $2.06M
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $1.13M
97.067 HOMELAND SECURITY GRANT PROGRAM $1.09M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $583,271
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $536,435
20.U01 National Priority Safety Programs [Improvement Grants] $506,740
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $457,556
39.003 DONATION OF FEDERAL SURPLUS PERSONAL PROPERTY $450,000
16.741 DNA BACKLOG REDUCTION PROGRAM $413,915
16.742 PAUL COVERDELL FORENSIC SCIENCES IMPROVEMENT GRANT PROGRAM $285,003
16.833 NATIONAL SEXUAL ASSAULT KIT INITIATIVE $261,836
81.106 TRANSPORT OF TRANSURANIC WASTES TO THE WASTE ISOLATION PILOT PLANT: STATES AND TRIBAL CONCERNS, PROPOSED SOLUTIONS $236,874
16.750 SUPPORT FOR ADAM WALSH ACT IMPLEMENTATION GRANT PROGRAM $197,763
16.593 RESIDENTIAL SUBSTANCE ABUSE TREATMENT FOR STATE PRISONERS $94,892
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $59,011
16.609 PROJECT SAFE NEIGHBORHOODS $1,618
16.554 NATIONAL CRIMINAL HISTORY IMPROVEMENT PROGRAM (NCHIP) $1,291