Finding 1218307 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-06-24

Audit: 404551

Organization: Dona Ana County (NM)

Auditor: HINKLE + LANDERS PC

AI Summary

Core Issue: The County failed to submit the data collection form by the March 31, 2026 deadline, violating federal compliance requirements.
Impacted Requirements: Non-compliance with 2 CFR 200.512(a)(1) regarding timely submission of audit reports and data collection forms.
Recommended Follow-up: Collaborate with auditors to ensure timely audit completion and data form submission within the required nine-month period.

Finding Text

2025-003 — LATE DATA COLLECTION FORM SUBMISSION Type of Finding: (G) Instance of Non-compliance related to Federal Awards and (H) Other Non-compliance Required to be Reported per Section 12-6-5 NMSA 1978 Funding Agency: U.S. Department of the Treasury Program: COVID 19 - Coronavirus State & Local Fiscal Recovery Fund AL #: 21.027 Award #: Not Applicable, Not Available, and CSLFRF-DFA_DAC-22-ZG1024 Award Period: July 16, 2024 – December 31, 2026, June 23, 2024 - October 31, 2026, and October 5, 2022 – June 30, 2025 Questioned Costs: None Funding Agency: U.S. Department of Homeland Security Program: Staffing for Adequate Fire and Emergency Response (SAFER) Grant AL #: 97.083 Award #: FEMA EWM-2021-FF-00696 and FEMA EMW-2022-FF-01079 Award Period: June 23, 2023 – June 24, 2027, March 13, 2024 – March 27, 2027 Questioned Costs: None Condition For the County’s year ended June 30, 2025, the data collection form was not submitted to the Federal Audit clearinghouse database by March 31, 2026. Criteria Per 2 CFR 200.512(a)(1), Report Submission: The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. Cause The County’s implementation of the new ERP system resulted in challenges related to system configuration, data conversion, and staff familiarity with the new system. Additionally, the County experienced significant staffing changes within the Finance Department during the transition period, which contributed to delays in completing reconciliations, reviewing accounting records, and finalizing financial information in a timely manner. Effect Not submitting the data collection form denies access to the public and grantor agencies which could lead in loss of funding needed. Recommendation The County should work with the auditors to ensure the audit is submitted within a time frame that allows the data collection form to be submitted prior to the nine-month period following the close of the fiscal year.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action Doña Ana County implemented Workday as new ERP system for the year ended June 30, 2025. There are several configuration issues and as a result, there has been a significant increase in the amount of time the county staff requires to provide information related to the audit. We posted RFP for Workday re-implementation, and the contract will go to the Board of County Commissioners for approval in April 2026. We will contract with an audit and accounting firm and will use their services to correct the implementation issues. That will help resolve the issues we faced in 2025 audit. The County’s Finance department had retirements and turnover in key audit-related positions. We will continue training and professional development of employees in current auditing and accounting standards. The County is establishing a centralized grant office and will consistently train the grant administrators that will affect grant accounting reconciliations and oversight. These steps will improve the timeliness and accuracy of financial reporting for audits and enable timely submission of reports. Finding resolution timeline: December 1, 2026 Designation of employee position responsible for meeting this deadline: Controller, Financial Services Director, Grants Manager, and IT Assistant Director

Other Findings in this Audit

1218303 2025-003

Material Weakness Repeat
1218304 2025-003

Material Weakness Repeat
1218305 2025-003

Material Weakness Repeat
1218306 2025-003

Material Weakness Repeat
1218308 2025-004

Material Weakness Repeat
1218309 2025-004

Material Weakness Repeat
1218310 2025-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$8.50M
21.023	EMERGENCY RENTAL ASSISTANCE PROGRAM	$3.71M
97.083	STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER)	$1.60M
21.032	LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND	$845,881
20.233	BORDER ENFORCEMENT GRANTS	$517,458
20.939	SAFE STREETS AND ROADS FOR ALL	$384,065
93.495	COMMUNITY HEALTH WORKERS FOR PUBLIC HEALTH RESPONSE AND RESILIENT	$316,146
97.067	HOMELAND SECURITY GRANT PROGRAM	$267,947
97.042	EMERGENCY MANAGEMENT PERFORMANCE GRANTS	$176,112
93.243	SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE	$128,284
16.710	PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS	$94,762
20.106	AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS	$76,270
16.738	EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM	$57,019
20.703	INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS	$55,956
97.044	ASSISTANCE TO FIREFIGHTERS GRANT	$26,335
20.600	STATE AND COMMUNITY HIGHWAY SAFETY	$25,457
20.205	HIGHWAY PLANNING AND CONSTRUCTION	$23,646
93.008	MEDICAL RESERVE CORPS SMALL GRANT PROGRAM	$17,467
15.227	DISTRIBUTION OF RECEIPTS TO STATE AND LOCAL GOVERNMENTS	$12,863
20.608	MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED	$4,184