Finding Text
Federal Program Title(s):
ALN 14.267 – Continuum of Care Program
ALN 16.575 - Crime Victim Assistance
Federal Agencies:
Department of Housing and Urban Development (ALN 14.267)
Department of Justice (ALN 16.575)
Pass-Through Agencies:
New Mexico Crime Victims Reparation Commission (ALN 16.575)
Award Numbers and Periods:
NM0056L6B012001 (7/1/2021-6/30/2022) (14.267)
NM0129D6B011901 (11/1/2020-10/31/2021) (14.267)
NM0129D6B012002 (11/1/2021-10/31/2022) (14.267)
2021-VA-979 (10/1/2020-9/30/2021) (16.575)
2022-VA-180 (10/1/2021-9/30/2022) (16.575)
Type of Finding:
Material Weakness in Internal Control over Compliance
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the
nonfederal 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.
Condition: During our testing, we noted that VSS internal controls were not sufficient or were not
operating as designed in order to document approval of allowable costs principals.
Questioned costs: $51.60 (14.267)
Context:
14.267 - during our testwork over allowable costs principals we noted 12 of the 60 tested
transactions did not have sufficient documentation of approval of allowability. Noted 1 of the 60
tested transactions did not have sufficient documentation to substantiate allowable activity
under the grant.
16.575 - during our testwork over allowable costs principals we noted 21 of the 60 tested
transactions did not have sufficient documentation of approval of allowability. Cause: Lack of established controls and procedures over allowable costs principals.
Effect: Possible noncompliance with federal cost principals or grant requirements.
Repeat Finding: 2021-004
Recommendation: We recommend that VSS reviews the current financial policies and procedures in
order to better serve the organization in documenting compliance with federal cost principals.
Views of responsible officials: VSS agrees with CLA and has updated our financial policies to include
electronic approval of expenditures through Bill.com. Timesheets and supplements will be reviewed
and approved by staff supervisors biweekly to ensure proper allocation of hours worked. Credit Card
Expense reports will require Description of item purchased, as well as the funder and class allocation.