Finding Text
2022-008 – Reporting (Significant Deficiency over Internal Controls over Compliance)
Federal Program Information
Federal Award Title and ALN: Hazard Mitigation Grant Program, 97.067
Federal Awarding Agency: Department of Homeland Security
Pass-Through Agency: NM Department of Homeland Security and Emergency Management
Federal Award ID Number: EMW-2019-SS-00083-S01-02; EMW-2020-SS-00127-S01-01
Federal Award Year: 2019, 2020
Condition: The City is not submitting financial and performance reports to the pass through entity on a
timely basis.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entities 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 sub-recipient grant agreements, EMW-2019-SS-00083-S01 and EMW-2020-SS-0127-S01, from the
State of New Mexico Department of Homeland Security, the City shall submit quarterly reports by the 30th
of the month following the quarter end.
Cause: The City did not have sufficient controls in place to ensure the timeliness of reports being
submitted to the pass through entity.
Questioned Cost: None
Effect: Lack of proper review for timeliness of reports can result in improper reporting which could lead
to disallowed costs. However, our audit disclosed no instances of unallowable costs.