Finding 626760 (2022-007)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-27
Audit: 52637
Organization: Catron County (NM)

AI Summary

  • Core Issue: The County lacks proper maintenance of grant documentation, leading to potential ineligible expenditures and untimely reimbursement requests.
  • Impacted Requirements: The County is not adhering to funding agreements that mandate strict accountability for all receipts, disbursements, and documentation related to grant projects.
  • Recommended Follow-Up: Establish a detailed tracking system for grant activities, including expenditures and supporting documents, with a target completion date of June 30, 2023.

Finding Text

CURRENT YEAR FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT: Federal Agency U.S. Department of Transportation Federal Assistance Listing Number 20.106 ? Airport Improvement Projects Grant Number 3-35-0034-008-2020 Questioned Costs None 2022-007 Lack of Maintenance of Grant Documentation (Material Weakness) Statement of Condition ? During our test work of federal award reimbursements and expenditures and New Mexico capital Outlay Appropriations, documentation and supporting invoices and reimbursement requests as well as grant award agreements were not available or present in County records. Reimbursement requests are not timely. County is not following award guidelines to maintain the accounting of grant activity for reimbursement requests, expenditures and supporting documentation. The County has numerous awards that are not managed and status of awards is not current. Criteria ? Funding agreements require strict accountability for all receipts and disbursements and to maintain all records and documents relative to projects. Effect ? Increased likelihood of ineligible expenditures occurring for awards, failure to request reimbursements timely or prior to expiration of funding, excess expenditures beyond budget and award limits, expiration of awards prior to completion of the projects. Cause ? Lack of training and accountability of management Recommendation ? The County should maintain contemporaneous appropriate grant and project schedules showing all activity by date to include expenditures, reimbursement requests and receipts with clear supporting documentation including correspondence with grantors and any grant award agreements and grant extensions. Management?s Response ? The County hired a Finance Director. Even though he spent most of his first eight months as Interim county Manager, he was able to assemble grant documents and collect grant funds that had been waiting for years to be claimed. As we now also have a full time County Manager, this part of the Finance Director?s job should improve even more. Responsible Position: Financial Director Timeline: June 30, 2023 PRIOR YEAR FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT: None.

Categories

Cash Management Eligibility Material Weakness Reporting

Other Findings in this Audit

  • 50318 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.665 Schools and Roads - Grants to States $1.63M
20.106 Airport Improvement Program $443,880
21.027 Coronavirus State and Local Fiscal Recovery Funds $186,976
15.227 Distribution of Receipts to State and Local Governments $13,889
21.019 Coronavirus Relief Fund $3,725