Finding 37924 (2022-003)

Federal Agency: U.S. Department of Agriculture Federal Program Name: SNAP Employment and Training Program Assistance Listing Number: 10.537 Pass-Through Agency: State of New Mexico Human Services Department Pass-Through Number: 21-630-9000-0054 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition/Context During our testing, for the month of October 2021, the reimbursement request was not submitted timely within 30 days after the last day of the following month as required by the grant agreement. Criteria In accordance with the Compliance Supplement, Part 7 ? Internal Control, 2 CFR Section 200.514(d)(3) requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. In accordance with the Governmental services Agreement between the State of New Mexico Human Services Department and HELP-New Mexico, Inc. monthly invoices must be submitted by the contractor no later than the last day of the following month. Cause Clerical oversight due to employee transitions. Effect Noncompliance with the Governmental Services Agreement. Repeat Finding - No Questioned Cost - None Recommendation We recommend that management improve internal control monitoring activities and provide training to staff regarding timely reimbursement requests. View of Responsible Officials There is no disagreement with the audit finding.