Finding Text
2023-012 Equipment and Real Property Management (Material Noncompliance, Material
Weakness in Internal Controls over Compliance)
Federal Program Information
Federal Award Title and ALN: Formula Grants for Rural Areas and Tribal Transit Program, 20.509
Federal Awarding Agency: U.S. Department of the Transportation
Pass-Through Entity: New Mexico Department of Transportation
Federal Award ID Number: N/A
Federal Award Year: 2023
Condition - The County was not able to provide a complete and accurate equipment listing tracking
items purchased with federal funding nor did the County conduct a physical inventory.
Criteria - Per 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal
control over the Federal award that provides reasonable assurance that the non-Federal entity 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).
Per 2 CFR 200.313(d)(1) Property records must be maintained that include a description of the
property, a serial number or other identification number, the source of funding for the property
(including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of
Federal participation in the project costs for the Federal award under which the property was
acquired, the location, use and condition of the property, and any ultimate disposition data
including the date of disposal and sale price of the property.
Per 2 CFR 200.313(d)(2), a physical inventory of program property must be taken and the results
reconciled with the property records at least once every 2 years.
Cause - The County is not following policy and procedures to ensure that equipment purchased with
federal funds is maintained and tracked and the County performing a physical inventory at a
minimum of every two years.
Effect - The County could dispose of or lose federally funded equipment without following federal
guidelines.
Auditor’s Recommendation - The auditor recommends the County enhance the design of its control
activities and policies and procedures should be developed to ensure physical inventories are taken
at least once every two years and that they create a tool to assist in tracking and maintaining
equipment purchased with federal funds.
Views of Responsible Officials and Planned Corrective Action - The County will enhance the control
activities and procedures to ensure physical inventories are taken at least every two years and will
track and maintain equipment purchased with federal funds.
Responsible Official – Andrea Montoya, Deputy County Manager and Robert Placencio, Finance
Director
Timeline and Estimated Completion Date –This will be a documented procedure by August 31, 2024.
The County will have a physical inventory completed by December 31, 2024.