Finding 627152 (2022-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-06
Audit: 46892
Organization: Luna County (NM)
Auditor: Cordova CPAS LLC

AI Summary

  • Core Issue: There was a $40,504 discrepancy between the quarterly report expenditures and the general ledger for the Stonegarden program, with no progress made to address this in fiscal year 2022.
  • Impacted Requirements: Quarterly reports must be submitted within 30 days and should match the general ledger; discrepancies indicate a lack of proper reconciliation and management oversight.
  • Recommended Follow-Up: Implement a reconciliation process between the Stonegarden program and Finance, ensure cross-training for staff to handle reporting during turnover, and develop a comprehensive plan for timely grant reporting.

Finding Text

Federal program information: Funding agency: U.S. Department Homeland Security Title: Operation Stonegarden Federal Assistance Listing Number: 97.067 Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our testwork of the Stonegarden program we noted the following: ? The quarterly report?s expenditures did not match the expenditures of the general ledger in total for a variance of $40,504. The County has not made progress over these deficiencies during the fiscal year 2022 Criteria: The SF-425 quarterly reports should be submitted within the required time period after the end of the reporting period, which is 30 days, and should agree to the general ledger. Grant accounting requires the program revenues to equal the program?s expenditures. Questioned Costs: None. Cause: The County had turnover in the management of this program and the position in a prior year and it has taken the client a lot of time to catch up on work not being done when the position was vacant. For the amounts reported not matching the general ledger and revenue not equaling expenditures, the reason for this is both a timing issue and there not being a proper reconciliation process in place when report amounts are submitted to the granting agency and when recording amounts in the general ledger. Effect: Four of the quarterly reports for the Stonegarden program were not submitted by the required due date, some of the amounts reported were not correctly matching the general ledger amounts. Auditor?s Recommendations: We recommend that there be a reconciliation with the Stonegarden program and with Finance to ensure that the amounts reported in the quarterly reports match the amounts reported on the general ledger and that the County cross-train someone to ensure that if there is turnover again for the program, there is someone who can submit the reports until someone else has been hired to fill the position. There also needs to be a reconciliation process of the grant reports in total and what has been reported in the County?s general ledger when the grant closeout process happens. Agency?s Response: Luna County will work on an implementation plan to ensure timely reports for all grants. Although the plan is in the infancy stage, Luna County anticipates completion in fiscal year 2023. Laura Garcia, grant manager is the responsible position.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 50703 2022-005
    Material Weakness
  • 50704 2022-005
    Material Weakness
  • 50705 2022-005
    Material Weakness
  • 50706 2022-005
    Material Weakness
  • 50707 2022-005
    Material Weakness
  • 50708 2022-005
    Material Weakness
  • 50709 2022-005
    Material Weakness
  • 50710 2022-004
    Significant Deficiency Repeat
  • 50711 2022-005
    Material Weakness
  • 50712 2022-005
    Material Weakness
  • 50713 2022-005
    Material Weakness
  • 627145 2022-005
    Material Weakness
  • 627146 2022-005
    Material Weakness
  • 627147 2022-005
    Material Weakness
  • 627148 2022-005
    Material Weakness
  • 627149 2022-005
    Material Weakness
  • 627150 2022-005
    Material Weakness
  • 627151 2022-005
    Material Weakness
  • 627153 2022-005
    Material Weakness
  • 627154 2022-005
    Material Weakness
  • 627155 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $932,316
97.067 Homeland Security Grant Program $896,879
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $661,906
21.027 Coronavirus State and Local Fiscal Recovery Funds $595,165
95.001 High Intensity Drug Trafficking Areas Program $435,687
16.575 Crime Victim Assistance $375,738
15.225 Recreation Resource Management $45,732
21.019 Coronavirus Relief Fund $44,420
93.235 Affordable Care Act (aca) Abstinence Education Program $30,762
15.230 Invasive and Noxious Plant Management $18,210