Finding 969066 (2023-001)

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Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-09
Audit: 302924
Organization: City of Raton, New Mexico (NM)
Auditor: Sjt Group LLC

AI Summary

  • Core Issue: The City missed the deadline for submitting the annual federal reporting package, which is required within nine months after the audit period ends.
  • Impacted Requirements: This non-compliance with 2 CFR 200.512 affects the City's standing with the U.S. Department of the Treasury regarding COVID-19 funding.
  • Recommended Follow-Up: The City should enhance its accounting processes and cross-train staff to ensure timely submission of future reports, with improvements expected by March 2024.

Finding Text

2023-001 – Late Submission of the Annual Federal Reporting Package Federal Program Information: Funding Agency: U.S. Department of the Treasury Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: July 1, 2022 – June 30, 2023 Criteria: 2 CFR 200.512 requires that the annual federal reporting package including the data collection form be submitted within nine months after the end of the audit period. Condition: The City did not submit the annual federal reporting package within nine months after June 30, 2023. Questioned Costs: None Cause: The City has experienced turnover in the accounting department and this caused a delay in the preparation of capital asset records related to governmental activities at year-end. Due to this delay, the City was not able to meet the annual federal reporting package submission deadline. Effect: The City is not in compliance with the annual federal reporting package deadline set forth by OMB Uniform Guidance. Auditor’s Recommendation: The City should improve processes to help ensure that financial statement balances are accurately reconciled to assist with the timely preparation and submission of the annual federal reporting package. Management’s Response: The City has successfully filled the critical vacancies in the accounting department and is looking to add one additional position before the end of the fiscal year. To address the need for financial reporting continuity, the City will cross-train accounting personnel to help ensure all financial reporting duties, including the preparation of capital asset records, are adequately covered. This will help ensure that the annual federal reporting package is completed and submitted within nine months after the end of the audit period. Responsible Party: Clerk / Treasurer Anticipated Completion: March 2024

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $176,701
20.106 Airport Improvement Program $20,092
20.205 Highway Planning and Construction $19,714
21.027 Coronavirus State and Local Fiscal Recovery Funds $11,680
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $8,293
81.106 Transport of Transuranic Wastes to the Waste Isolation Pilot Plant: States and Tribal Concerns, Proposed Solutions $7,001