Finding 573310 (2024-005)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-08-12
Audit: 364100
Organization: City of Espanola (NM)
Auditor: Cordova CPAS LLC

AI Summary

  • Core Issue: The City failed to submit all quarterly financial reports on time, with 3 out of 4 being late.
  • Impacted Requirements: Compliance with federal reporting requirements under 2 CFR 200.329 section (c)(1) was not met.
  • Recommended Follow-Up: Ensure multiple staff members are responsible for report submissions to maintain compliance during staff turnover.

Finding Text

2024‐005 Reporting (2023‐009) Reporting (Significant Deficiency) (Repeat/Modified) Federal Program Information: Funding Agency: Department of the Justice Title: Public Safety Partnership and Community Policing Grants Assistance Listing Number: 16.710 Compliance Requirement: Reporting Award Year: July 1, 2023 to June 30, 2024 Condition: During our audit, we noted that the City did not submit all of its quarterly financial reports and one progress report in a timely manner. The City did make progress in this finding. In prior year, the City did not submit the proper reports, however, this year, all 4 quarterly reports were submitted, however, 3 out of 4 were late. Criteria: The City must submit the federal financial reports 30 days after the end of the end of each quarter (2 CFR 200.329 section (c)(1). Effect: The City was not in compliance with the reporting requirement; the City did not submit information in a timely manner for three quarters of the fiscal year. Questioned Costs: None Cause: The City had turnover that handled this duty during the time that the reports were due to be submitted and so it was not completed until the end of the fiscal year. Auditors’ Recommendation: We recommend that the City ensure that it has more than one position responsible for submitting these quarterly and any progress reports to the federal government to ensure that they are always completed even if one position is vacant. Agency’s Response: The City of acknowledges the audit finding regarding the untimely submission of reporting for the Cops Hiring program. This was a result of turnover, and the new grant manager was not hired until the middle of fiscal year 2024. The Procurement officer, who manages grants, as well as the Finance Director, have prioritized compliance with federal reporting requirements. To prevent future occurrences, the Finance Department has implemented internal controls ensuring multiple staff members are responsible for federal reporting. Specifically, both the Finance Director and the Financial Analyst now share the responsibility and authority to complete and submit these annual reports. This new process ensures continuity in reporting, even in the event of staff turnover, and strengthens the City’s commitment to compliance with federal funding requirements. Additionally, the Finance Director oversees this responsibility so there are now multiple controls to ensure timely completion. Responsible Parties: The Director of Finance. Timeline: June 30, 2025

Corrective Action Plan

2024‐005 Reporting (Significant Deficiency) (Repeat/Modified): The City of acknowledges the audit finding regarding the untimely submission of reporting for the Cops Hiring program. This was a result of turnover and the new grant manager was not hired until the middle of fiscal year 2024. The Procurement officer, who manages grants, as well as the Finance Director, have prioritized compliance with federal reporting requirements. To prevent future occurrences, the Finance Department has implemented internal controls ensuring multiple staff members are responsible for federal reporting. Specifically, both the Finance Director and the Financial Analyst now share the responsibility and authority to complete and submit these annual reports. This new process ensures continuity in reporting, even in the event of staff turnover, and strengthens the City’s commitment to compliance with federal funding requirements. Additionally, the Finance Director oversees this responsibility so there are now multiple controls to ensure timely completion.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
16.710 Public Safety Partnership and Community Policing Grants $654,175
16.039 Rural Violent Crime Initiative $113,500
21.027 Coronavirus State and Local Fiscal Recovery Funds $5,871
95.001 High Intensity Drug Trafficking Areas Program $554
45.312 National Leadership Grants $132