FAC Explorer

Finding 366500 (2023-009)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-02-07
Audit: 16132
Organization: New Mexico Highlands University (NM)
Auditor: Carr Riggs & Ingram LLC

AI Summary

  • Core Issue: The University failed to apply the correct small purchase threshold, leading to questioned costs of $76,109.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303(a) and 2 CFR 200.320(a) regarding internal controls and procurement procedures.
  • Recommended Follow-up: Update procurement policies to align with federal guidelines and ensure compliance moving forward.

Finding Text

2023‐009 (2022‐005) Procurement, Small Purchase (Significant Deficiency in Internal Controls over Compliance, Noncompliance, and Questioned Costs greater than $25k) Funding Agency: United States Department of Education Federal Award Agreement Number: N/A Award Year: 2023 Title: Education Stabilization Fund, HEERF Assistance Listing Number: 84.425C, 84.425F Pass‐through Agency: Not Applicable Pass‐through Identification Number: Not Applicable Questioned Costs: $76,109 Condition: The University did not apply the correct small purchase threshold for identifying purchases that need to obtain quotes in their policy. Population $10k‐$20k not included in small purchase policy included transactions totaling $76,109. Progress on resolution of prior year finding: No progress was made. Criteria: Per 2 CFR 200.303(a) requires non‐Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and the terms and conditions of grant agreements. 2 CFR 200.320(a) sets the micro‐purchase threshold at $10,000 and requires purchases over the micro‐purchase threshold to use small purchase procedures, whereby price or rate quotations must be obtained. Cause: Policies are not adequate to meet federal guidelines and need to be updated. Effect: The University may unintentionally use a higher‐cost vendor when failing to obtain price or rate quotations for items over the micro‐purchase threshold.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 366498 2023-009
    Significant Deficiency
  • 366499 2023-010
    Significant Deficiency
  • 366501 2023-010
    Significant Deficiency
  • 366502 2023-009
    Significant Deficiency
  • 366503 2023-010
    Significant Deficiency
  • 942940 2023-009
    Significant Deficiency
  • 942941 2023-010
    Significant Deficiency
  • 942942 2023-009
    Significant Deficiency
  • 942943 2023-010
    Significant Deficiency
  • 942944 2023-009
    Significant Deficiency
  • 942945 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.15M
21.027 Covid-19: Coronavirus State and Local Fiscal Recovery Funds $4.76M
84.425F Covid-19: Education Stabilization Fund (heerf) $4.39M
84.063 Federal Pell Grant Program $3.72M
93.658 Foster Care_title IV-E $1.69M
47.049 Mathematical and Physical Sciences $1.09M
10.694 Southwest Forest Health and Wildfire Prevention: New Mexico Forest and Watershed Restoration Institute $550,317
11.028 Connecting Minority Communities Pilot Program $526,021
84.031S Higher Education_institutional Aid $470,930
93.575 Child Care and Development Block Grant $354,375
84.033 Federal Work-Study Program $316,564
47.076 Education and Human Resources $282,768
84.031C Higher Education_institutional Aid $211,621
84.007 Federal Supplemental Educational Opportunity Grants $162,046
10.694 Southwest Forest Health and Wildfire Prevention $141,558
10.723 Conservation Science Center at Hu Asap $122,230
47.050 Geosciences $116,189
47.076 Cultivating Access to Manifest Intentional Outcomes in Stem $91,288
10.751 Fy 2020 Distance Learning and Telemedicine Grant) $86,627
84.365Z English Language Acquisition State Grants $79,876
10.223 Hispanic Serving Institutions Education Grants $48,391
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $44,012
10.326 Capacity Building for Non-Land Grant Colleges of Agriculture (nlgca) $39,448
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $37,740
47.079 Office of International Science and Engineering $34,481
10.519 Using Cea to Quantify C&n Content $34,000
10.707 Research Joint Venture and Cost Reimbursable Agreements $30,661
47.076 Trans‐nsf Recovery Act Research Support $22,743
10.223 Conservation Science Center at Hu Asap $21,825
10.694 Southwest Forest Health and Wildfire Prevention: Sfnf Jemez Project $16,928
10.310 Agriculture and Food Research Initiative (afri) $14,186
93.859 Biomedical Research and Research Training $12,587
10.664 Cooperative Forestry Assistance $11,235
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System $10,582
84.425C Covid-19: Education Stabilization Fund (geer) $10,098
45.129 Promotion of the Humanities_federal/state Partnership $9,590
10.699 Partnership Agreements $8,640
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $5,658
47.074 Collaborative Research:microbiome Meditation Etc. $1,994