Finding Text
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.