FAC Explorer

Finding 366723 (2023-004)

Significant Deficiency
Requirement
H
Questioned Costs
$1
Year
2023
Accepted
2024-02-09
Audit: 289732
Organization: New Mexico Early Childhood Education and Care Department (NM)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Costs were incurred after the grant's end date, violating compliance requirements.
  • Impacted Requirements: Federal Compliance Supplement mandates that expenses should not exceed the period of performance.
  • Recommended Follow-Up: Review voucher dates carefully to ensure all activities align with the correct grant period.

Finding Text

2023 – 004 Period of Performance Federal Agency: US Department of Education Federal Program Name: Special Education - Grants for Infants and Families Assistance Listing Number: 84.181A Federal Award Identification Number and Year: H181X210125-21A & H181A210125 Award Period: 7/1/21-09/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Part 4 of the Federal Compliance Supplement states that costs under a grant should not be incurred after the period of performance end date. Condition: During our testing of 8 vouchers, 4 had costs incurred after the grant end date. Additionally, 1 voucher was not paid within the liquidation period of 120 days after the period of performance. Questioned costs: $32,998.27 Context: We tested 18 vouchers, 4 contained exceptions Cause: Management oversight with regard to recording the activity to the correct grant award. Effect: Noncompliance with period of performance Repeat Finding: No Recommendation: We recommend the program thoroughly review the dates on vouchers to ensure the activity is recorded to the right grant award based on the period of performance. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2023-004 Period of Performance U.S. Department of Education Special Education - Grants for Infants and Families Assistance Listing Numbers: 84.181A Recommendation: We recommend the program thoroughly review the dates on vouchers to ensure the activity is recorded to the right grant award based on the period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ECECD takes this matter seriously and as of September 2023, has taken immediate corrective action to address and rectify it. Upon identification of this compliance discrepancy, ECECD reviewed its internal processes and procedures to ensure that costs are appropriately incurred only within the specified period of performance. To prevent any further occurrences of costs being incurred outside the approved period, ECECD has enhanced our oversight mechanisms, implemented additional checks, and reinforced the importance of adhering to the stipulated timeframes within our organization. The cross-training and second review on all invoices has been implemented by the lead financial coordinator. ECECD also established a tracking log to ensure invoices are received and processed within the period of performance. Furthermore, ECECD began conducting a comprehensive review of all incurred costs after the period of performance to identify and rectify any discrepancies. Any such costs that were found to be in violation of federal compliance requirements have been addressed, corrected, and reported as necessary. To prevent any future lapses in reporting, the agency contract program manager will work collaboratively with ASD to develop a system to ensure all costs are incurred timely in the period of performance. This proactive measure will help us maintain transparency and accuracy in our reporting. ECECD is fully committed to strengthening our processes to ensure full compliance with reporting requirements moving forward. Name(s) of the contact person(s) responsible for corrective action: Carmel Pacheco-Aragon, Chief Financial Officer. Planned completion date for corrective action plan: June 30, 2024

Categories

Questioned Costs Internal Control / Segregation of Duties Period of Performance Significant Deficiency

Other Findings in this Audit

  • 366724 2023-005
    Significant Deficiency
  • 366725 2023-002
    Material Weakness Repeat
  • 366726 2023-003
    Significant Deficiency Repeat
  • 943165 2023-004
    Significant Deficiency
  • 943166 2023-005
    Significant Deficiency
  • 943167 2023-002
    Material Weakness Repeat
  • 943168 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $41.64M
10.558 Child and Adult Care Food Program $36.79M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $31.53M
93.558 Temporary Assistance for Needy Families $18.77M
84.181A Special Education-Grants for Infants and Families $3.24M
84.425C Education Stabilization Fund $1.83M
10.560 State Administrative Expenses for Child Nutrition $1.32M
93.778 Medical Assistance Program $924,624
84.181X Family, Infant and Toddler with Disabilities-American Rescue Plan $773,661
93.434 Every Student Succeeds Act/preschool Development Grants $599,502
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $379,559
93.110 Maternal and Child Health Federal Consolidated Programs $229,841
93.600 Head Start $105,189
10.559 Summer Food Service Program for Children $54,405