FAC Explorer

Finding 574146 (2024-004)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-08-21
Audit: 364720
Organization: New Mexico Rural Water Association (NM)
Auditor: Michael L Moore CPA LLC

AI Summary

  • Answer: Internal control policies must ensure all disbursements are well-documented and approved.
  • Trend: Compliance with federal per diem standards for travel expenses is being followed.
  • List: Ensure each disbursement has supporting documents, approval records, and is recorded in the general ledger.

Finding Text

Properly designed internal control policies address controls governing disbursements. Each disbursement should be supported with proper documentation (e.g. invoice, contract, etc.), include documentation of review and approval, and be properly recorded in the general ledger. The Association follows federal per diem standards regarding mileage reimbursement and overnight travel.

Corrective Action Plan

It is management’s policy to update and distribute travel reimbursement forms with new mileage and per diem rates at the beginning of each year, and any other time the rates may change. Travel and per diem rates are reviewed periodically to ensure current rates are used. A staff person was utilized for a period of time over the past year, but that process was not continued through the full year. Utilization of a staff person to review vouchers prior to payment will begin again, and will be used continuously in the future.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 574147 2024-005
    Significant Deficiency
  • 574148 2024-005
    Significant Deficiency
  • 1150588 2024-004
    Significant Deficiency Repeat
  • 1150589 2024-005
    Significant Deficiency
  • 1150590 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.U01 Circuit Rider $423,122
10.761 Water and Waste Technical Assistance and Training Grants $275,125
10.761 Energy Efficiency $145,496
66.424 Surveys, Studies, Investigations, Demonstrations, and Training Grants - Section 1442 of the Safe Drinking Water Act $137,235
10.761 Apprenticeship Program $114,684
10.U02 Ag Source Water $108,848
66.446 Wasterwater Tribal Community Technical Assistance Program $84,092
10.862 Rural Decentralized Water Systems Grant Program $39,309
66.446 Technical Assistance for Small/rural Decentralized Wastewater Systems $34,704
66.446 Training and Technical Assistance for Wasterwater Lagoons $14,710
66.446 Priority Area 2 Technical Assistance for Small/rural Wastewater Systems $11,538