Finding Text
Cash Management Controls (2023-011 – Cash Management Controls (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 relies on the pass-through entity to approve requests for reimbursements.
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).
Cause - The County does not have policies and procedures in place to ensure request for
reimbursements are being prepared then reviewed and approved by another employee prior to
submitting to the pass-through entity.
Effect - The County could inaccurately report unallowable expenses for reimbursement that would
not be detected by controls that are not operating.
Auditor’s Recommendation - The auditor recommends the County develop and implement
adequate policies and procedures to ensure another individual is reviewing and approving
reimbursement requests prior to submitting to the pass-through entity and provide training to
those personnel that will be charged with the task.
Views of Responsible Officials and Planned Corrective Action - The County will create a documented
process in the new policy and procedures manual for federal guidelines. A separation of duties has
been implemented verbally with our staff. Andrea Montoya and our new Finance Director will be
reviewing and approving these reimbursements moving forward. The verbal corrective action is in
effect immediately.
Responsible Official – Andrea Montoya, Deputy County Manager and Robert Placencio, Finance
Director
Timeline and Estimated Completion Date – No later than August 31, 2024.