Finding 1186828 (2025-015)

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

AI Summary

  • Core Issue: Significant deficiencies in internal controls over compliance were found, including late or missing Semiannual Certifications and discrepancies in timesheets.
  • Impacted Requirements: Compliance with deadlines for Semiannual Certifications, monthly Personnel Activity Forms (PARs), and accurate reporting of payroll charges to federal awards.
  • Recommended Follow-Up: Provide training for employees and supervisors to ensure adherence to policies and improve internal controls to prevent future issues.

Finding Text

Federal agency: U.S. Department of Education Federal program title: Student Support and Academic Enrichment Program Supporting Effective Instruction Grant English Language Acquisition Grant Assistance Listing Number: 84.367, 84.365, 84.424A, 84.424F, 84.424D Federal Award Identification Number, Year, and Award Period: S367A230030: 7/1/2023-12/31/2026 S365A220031: 7/1/2022 - 12/31/2025 S424A230032: 7/1/2023-12/31/2026 S424F220032: 9/15/2022 - 9/30/2025 S424D200005-22B:10/01/2020-09/30/2025 Pass-Through Agency: N/A Pass-Through Number(s): N/A Type of Finding:  Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Per the most recent version of the Semiannual Certification, sign offs were required prior to 1/15/2025 for the first half of the fiscal year or 7/15/2025 for the last half of the fiscal year. Additionally, Personnel Activity Forms (PARs) are required to be prepared at least monthly and coincide with one or more pay periods. Per the PED grant manual, “At least quarterly, comparisons of actual costs to budgeted distributions based on the monthly activity reports are made.” Additionally, Under 2 CFR 200.430(g)(1)(vii), ‘Budget estimates (meaning, estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:’ and specifically under subparagraph (C), ‘The recipient's or subrecipient's system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the Federal award is accurate, allowable, and properly allocated.' Condition: During single audit testwork over payroll, the following issues were noted which are detailed by ALN: 84.367:  7 of 15 samples had the Semiannual Certification completed after the required date of 1/15/2025  2 of 15 samples did not include a date of signature to complete the Semiannual Certification, making it impossible to verify whether it was completed within the required submission timeframe  2 of 15 timesheets reviewed did not agree to the charges entered into SHARE. The total of the variances is approximately $97. The variances were not corrected. 84.365:  1 of 10 samples had the PAR signed in February 2025 for work done in August 2024, which is beyond the monthly preparation requirement.  1 of 10 timesheets reviewed did not agree to the charges entered into SHARE. The total of the variances is approximately $18. The variances were not corrected. 84.424A:  2 of 15 samples had the Semiannual Certification completed after the required date of 7/15/2025 84.424F  1 of 15 samples had the PAR signed in August for work done in March, which is beyond the monthly preparation requirement. 84.424D  4 of 5 timesheets reviewed did not agree to the charges entered into SHARE. The total of the variances are approximately $10,189 of overcharges. Questioned costs: $10,916 Known amount Context: This was identified as we tested payroll. The samples described above were statistically valid samples. Cause: The Department has not maintained internal control designed to reasonably ensure compliance with Department’s policy. Effect: Noncompliance with applicable regulations and Department policy, possible undercharges and overcharges to the Federal grants. Repeat Finding: No Recommendation: We recommend that the Department assist the Programs by providing training to employees, including supervisory-level employees, to ensure adherence with Department or Program policy. Views of responsible officials: ALN 84.367 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 84.424A/F 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 84.424D 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

Recommendation: We recommend that the Department assist the Programs by providing training to employees, including supervisory-level employees, to ensure adherence with Department or Program policy. Views of responsible officials: ALN 84.367 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 84.424A/F 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 84.424D 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
  • 1186812 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
  • 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