Finding 1186812 (2025-010)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-26
Audit: 394575
Organization: Second Judicial District Court (NM)

AI Summary

  • Core Issue: The Department failed to report subawards as required by the Transparency Act, resulting in a material weakness in internal controls.
  • Impacted Requirements: Noncompliance with 2 CFR Part 170 and 2 CFR section 200.303 regarding timely and complete reporting of subawards.
  • Recommended Follow-Up: Provide training on FFATA reporting and establish robust procedures to ensure timely submission and proper documentation of reports.

Finding Text

Federal agency: U.S. Department of Education Federal Program Name: Stronger Connections Grant (SCG) Program English Language Acquisition State Grants Assistance Listing Number: 84.424F, 84.365 Federal Award Identification Number, Year, and Award Period: S424F220032: 9/15/2022 - 9/30/2025 T365A240031: 7/1/2024 - 9/30/2025 Pass-Through Agency: N/A Pass-Through Number(s): N/A Type of Finding:  Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). For subaward information, report no later than the end of the month following the month in which the obligation was made. Additionally, 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal award, which includes providing an environment where segregation of duties can be achieved for preventative measures. Condition: During single audit testwork over reporting, the following issues were noted which are detailed by ALN: 84.424F  1 out of 1 grant did not report subaward information during fiscal year 2025 to the FFATA Subaward Reporting System (FSRS). 84.365:  1 of 1 grant had an incomplete subaward information report submitted to the FFATA Subaward Reporting System (FSRS). Questioned costs: None. Context: This was identified during Reporting Testing. The samples described above were statistically valid samples. PUBLIC EDUCATION DEPARTMENT FEDERAL FINDINGS 2025-010 (2021-004) FFATA Reporting (Material Weakness, Modified Opinion) (Continued) Cause: The Department lacks established internal controls and procedures over FFATA subaward management to ensure reports are submitted timely, complete, and are properly maintained in the files of the Department. Effect: The Department is not in compliance with federal regulations. Repeat Finding: 2024-004, 2023-004, 2022-006, 2021-004 Recommendation: We recommend the Department review the instructions for completion of the FFATA reports with training provided to the program staff who are preparing and reviewing the FFATA reports to ensure submitted reports are timely and complete. We recommend the Department implement effective processes and procedures to maintain the submitted reports and the documentation used to prepare the reports in the files of the Department. Views of responsible officials: ALN 84.424F Open – Views of responsible officials and management’s planned corrective actions, timeline and designation of what employee position are responsible for meeting deadlines in the timeline. ALN 84.365 Open – Views of responsible officials and management’s planned corrective actions, timeline and designation of what employee position are responsible for meeting deadlines in the timeline.

Corrective Action Plan

ALN 84.424F Open – Views of responsible officials and management’s planned corrective actions, timeline and designation of what employee position are responsible for meeting deadlines in the timeline. ALN 84.365 Open – Views of responsible officials and management’s planned corrective actions, timeline and designation of what employee position are responsible for meeting deadlines in the timeline. The Division of Vocational Rehabilitation agrees with the findings and, as such, will implement regular reviews of federal expenditures and period of performance. The DVR General ledger team will meet quarterly with the Chief Financial Officer and review all federal expenditures to be recorded timely and accurately. DVR will also continue to meet with program field staff to ensure obligations are within the appropriate period. Position: CFO Timeline: 06/30/2025

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1186811 2025-010
    Material Weakness Repeat
  • 1186813 2025-011
    Material Weakness Repeat
  • 1186814 2025-011
    Material Weakness Repeat
  • 1186815 2025-011
    Material Weakness Repeat
  • 1186816 2025-011
    Material Weakness Repeat
  • 1186817 2025-012
    Material Weakness Repeat
  • 1186818 2025-012
    Material Weakness Repeat
  • 1186819 2025-013
    Material Weakness Repeat
  • 1186820 2025-014
    Material Weakness Repeat
  • 1186821 2025-014
    Material Weakness Repeat
  • 1186822 2025-014
    Material Weakness Repeat
  • 1186823 2025-014
    Material Weakness Repeat
  • 1186824 2025-015
    Material Weakness Repeat
  • 1186825 2025-015
    Material Weakness Repeat
  • 1186826 2025-015
    Material Weakness Repeat
  • 1186827 2025-015
    Material Weakness Repeat
  • 1186828 2025-015
    Material Weakness Repeat
  • 1186829 2025-016
    Material Weakness Repeat
  • 1186830 2025-016
    Material Weakness Repeat
  • 1186831 2025-016
    Material Weakness Repeat
  • 1186832 2025-017
    Material Weakness Repeat
  • 1186833 2025-018
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $180.07M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $151.57M
84.027 SPECIAL EDUCATION GRANTS TO STATES $115.64M
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $30.64M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $19.13M
96.001 SOCIAL SECURITY DISABILITY INSURANCE $16.72M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $10.31M
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $9.42M
21.029 CORONAVIRUS CAPITAL PROJECTS FUND $7.40M
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $6.09M
84.369 GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES $5.45M
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $5.00M
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $3.58M
84.358 RURAL EDUCATION $3.55M
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $2.87M
84.421 DISABILITY INNOVATION FUND (DIF) $2.73M
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $2.69M
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $2.49M
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $2.31M
84.011 MIGRANT EDUCATION STATE GRANT PROGRAM $1.49M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $1.37M
84.425 EDUCATION STABILIZATION FUND $1.21M
84.411 EDUCATION INNOVATION AND RESEARCH (FORMERLY INVESTING IN INNOVATION (I3) FUND) $1.16M
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $1.12M
84.372 STATEWIDE LONGITUDINAL DATA SYSTEMS $1.01M
84.323 SPECIAL EDUCATION - STATE PERSONNEL DEVELOPMENT $654,083
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $500,000
10.645 FARM TO SCHOOL STATE FORMULA GRANT $395,130
93.981 IMPROVING STUDENT HEALTH AND ACADEMIC ACHIEVEMENT THROUGH NUTRITION, PHYSICAL ACTIVITY AND THE MANAGEMENT OF CHRONIC CONDITIONS IN SCHOOLS $376,589
84.013 TITLE I STATE AGENCY PROGRAM FOR NEGLECTED AND DELINQUENT CHILDREN AND YOUTH $353,709
17.285 REGISTERED APPRENTICESHIP $297,596
10.579 CHILD NUTRITION DISCRETIONARY GRANTS LIMITED AVAILABILITY $234,380
84.187 SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS WITH THE MOST SIGNIFICANT DISABILITIES $107,915
10.541 CHILD NUTRITION-TECHNOLOGY INNOVATION GRANT $94,586
84.144 MIGRANT EDUCATION COORDINATION PROGRAM $80,544
93.369 ACL INDEPENDENT LIVING STATE GRANTS $74,703