New Mexico Coalition Against Domestic ViolenceNon-Profit

Criteria: To be allowable under federal awards, costs must be necessary and reasonable for the performance and administration of the federal award. Costs must meet the following criteria: 1) necessary and reasonable; 2) consistent with policies and procedures; 3) accorded consistent treatment; and 4) are adequately documented. Condition: Expenditures were not consistent with the above criteria. We noted the following: 1) One out twenty-seven transactions tested where an employee’s pay rate was not approved and three out of twenty-seven transactions tested where there was no timesheet approval. 2) One out of twenty-seven transactions tested where management could not provide original supporting documentation. Questioned Costs: None. Context: Four out of twenty-seven transactions tested were not in compliance with federal requirements. Cause and Effect: Internal control procedures are not in place to ensure all transactions are properly approved and supporting documentation is being maintained. Auditors’ Recommendations: Established policies and procedures should be enforced to ensure compliance with federal requirements and the Organizations policies and procedures. All transactions should be appropriately approved and adequately supported by accurate source documentation to demonstrate compliance with federal requirements. Management’s Response: Management acknowledges the audit finding and has evaluated current procedures and have confirmed controls are in place to ensure compliance, accuracy, and accountability in both areas. To prevent unauthorized changes, to strengthen time management controls and ensure proper oversight, management will ensure controls related to the approval process are enforced

Criteria: The Coalition is required to complete annual financial reports within 90 days of the reporting period. Condition: The annual financial reports were not submitted until 95 days after the due date. Questioned Costs: None. Context: Three of three annual financial reports were submitted late. Cause and Effect: Internal controls are not in place to ensure that the required annual financial reports are submitted timely. Auditors’ Recommendations: Implement a process that ensures all reports are submitted timely to the appropriate granting agency. Management’s Response: Management acknowledges the audit finding and has implemented a structured procedure to enhance compliance with funding timelines and reporting deadlines. As part of this process, all relevant reports and due dates are identified, documented, and added to the appropriate team members calendars and maintained throughout the fiscal year. Management is committed to ongoing monitoring and continuous improvement of this process to maintain transparency and regulatory compliance.