POJOAQUE VALLEY SCHOOL DISTRICTState Government

During our single audit testwork, we noted that the District did not consistently follow its establishedinternal controls over procurement and disbursements. Specifically, 7 out of 40 samples tested did not includeproper documentation indicating that goods were received, as required by District controls.

The District’s fiscal year end June 30, 2025, single audit reporting package was not submitted tothe Federal Audit Clearinghouse (FAC) within the required timeframe. The submission was completed after thedue date established by federal regulations.

2024‐003 Single Audit Report Submission (Other Matter) Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2023 to June 30, 2024 Condition: The District’s fiscal year ended June 30, 2024, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. Criteria: 2 CFR Section 200.50(c) of the Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The District is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The District experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the District should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: Staff responsible for the audit was on FMLA, along with other significant turnover in personnel, causing a late audit. This should be resolved and should not happen again in the future. We are also setting up controls to mitigate delays for the audit preparation. This should be resolved by the end of the 24-25 school year. Responsible Parties: The Chief Financial Officer. Timeline: June 30, 2025

Federal program information: Funding agency: U.S. Department of Education Title: Impact Aid Program Assistance Listing number: 84.041 Award year: July 1, 2022 to June 30, 2023 Compliance Requirement: Special Tests and Provisions Condition: During our testwork over the required level of expenditure requirement, we noted that the District did not have a calculation to ascertain that the required level of expenditure for federally connected children was met. Criteria: According to Section 7003(d) of ESEA (20 USC 7703(d)), the District must have controls in place to ensure they met the required level of expenditure for providing special education and related services to federally connected children with disabilities. Effect: The District did not have controls in place to ensure they were in compliance with the required level of expenditures. Cause: The District had a change in personnel and management that were part of this process and with the change the calculation over the required level of expenditure was not completed for fiscal year 2023. Auditor’s Recommendations: We recommend the District implement controls to ensure that the calculation of the required level of expenditure is done for the Impact Aid program annually. Agency Response: The district will work on creating a procedure on performing the required calculation for the Impact Aid Program and will seek assistance if needed to rectify this finding. The program manager will research the calculation that need to be performed in the 23-24 school year to ensure proper compliance for this fund in the future. 129

KMA was unable to obtain sufficient audit evidence to support the amount of an expenditure for the major program identified above. The amount of $8,238.75 recorded by management did not tie to the amount per the invoice and management was unable to reconcile this amount back to the invoice. In addition, we were unable to verify if the full amount of the expenditure was related to the purpose of the award: providing special education and related services to children with disabilities.

FA 2019-001 ? Control over Compliance for Suspension and Debarment Monitoring (Significant Deficiency) Federal Program Information: Funding Agency: U.S Department of Agriculture Title: National School Lunch Program CFDA Number: 10.555 Award Year: 2018-2019 Questioned Costs: None noted Condition: Per 2 CFR 200.303 non-federal entities should have established and effective internal controls over compliance. The District should have controls in place to provide reasonable assurance that covered transactions are not entered into with a debarred or suspended party. Criteria: The District has no internal controls in place to monitor compliance over the monitoring Vendors for Suspension and Debarment. Effect: The District could unknowingly contract with a Vendor that has been suspended or debarred resulting in noncompliance with Federal requirements. Cause: The District does not have controls in place to provide reasonable assurance that covered transactions are not entered into with debarred or suspended parties. Auditors? Recommendation: The Auditor recommends that the District designs and implements controls over the procurement process to ensure that vendors are being monitored for suspension and debarment to provide reasonable assurance that procurement is in compliance with provisions of the Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: Management concurred with the recommendation. The District has already started monitoring vendors to ensure that they are not under suspension or debarment.