Finding 372091 (2022-008)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-03-04
Audit: 293380
Organization: City of Espanola (NM)
Auditor: Cordova CPAS LLC

AI Summary

  • Core Issue: The City inaccurately completed the Schedule of Expenditures of Federal Awards, failing to specify if funding was direct or passed through.
  • Impacted Requirements: This violates OMB Uniform Guidance, which mandates detailed award identification including federal assistance numbers and agency names.
  • Recommended Follow-Up: The City should establish a system to prepare the Schedule accurately during the closing process, with corrective actions expected by year-end 2024.

Finding Text

Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.

Categories

Reporting Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $548,920
16.710 Public Safety Partnership and Community Policing Grants $215,063
66.202 Congressionally Mandated Projects $194,382
95.001 High Intensity Drug Trafficking Areas Program $96,427
16.034 Coronavirus Emergency Supplemental Funding Program $15,453
45.312 National Leadership Grants $10,862