Finding 481043 (2023-003)

2023-003 – Reporting Controls over Special Reporting – Significant Deficiency in Internal Controls over Compliance Federal Program Information Federal Award Title and ALN: 84.425 COVID-19 - Education Stabilization Fund Federal Awarding Agency: U.S. Department of the Education Pass-Through Entity: New Mexico Public Education Department Federal Award ID Number: N/A Federal Award Year: 2023 Condition – The District did not have supporting documentation to support the review and approvals of the annual report that is submitted to the New Mexico Public Education Department (“PED”). Criteria – Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Effect – Lack of proper review of report can result in improper reporting. Lack of proper approval of report can result in an incomplete audit trail and documentation. Cause – The District did not have controls in place to show review and approval occurred before submitting the annual report to PED. Questioned Cost – Not applicable.