oversight

Single Audit of the New Mexico Public Education Department for the Fiscal Year Ended June 30, 2020

Published by the Social Security Administration, Office of Inspector General on 2021-04-27.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

     Management Advisory Report




  Single Audit of the New Mexico
Public Education Department for the
 Fiscal Year Ended June 30, 2020




       A-77-21-00003 | April 2021
Single Audit of the New Mexico Public Education Department
for the Fiscal Year Ended June 30, 2020
A-77-21-00003
April 2021                                                                  Office of Audit Report Summary

Objective                                   Findings

To report internal control weaknesses,      The single audit reported New Mexico DDS did not
noncompliance issues, and
unallowable costs identified in the            have adequate controls to ensure it submits financial reports
single audit to the Social Security             timely when the responsible person is unavailable or
Administration (SSA) for resolution            always maintain documentation of medical license verifications.
action.
                                            Recommendations
Background
                                            We recommend SSA verify New Mexico DDS:
A single audit is an organization-wide
financial statement and Federal awards      1. Cross-trained employees to ensure the timely submission of
audit of a non-Federal entity that             financial reports.
expends $750,000 or more in Federal
funds in 1 year. It is intended to assure   2. Established an appropriate process to maintain and document
the Government that a non-Federal              medical license verifications.
entity has adequate internal controls in
place and is generally in compliance
with program requirements.
Non-Federal entities typically include
State and local governments, Indian
tribes, universities, and nonprofit
organizations.

CliftonLarsonAllen LLP conducted the
single audit of the New Mexico Public
Education Department. SSA is
responsible for resolving single audit
findings related to New Mexico
Disability Determination Services
(DDS), which performs disability
determinations under SSA’s Disability
Insurance and Supplemental Security
Income programs. The Department of
Vocational Rehabilitation within the
Public Education Department is New
Mexico DDS’ parent agency.
MEMORANDUM


Date:   April 27, 2021                                                          Refer To:

To:     Trae Sommer
        Director
        Audit Liaison Staff
From:   Assistant Inspector General for Audit
Subject: Single Audit of the New Mexico Public Education Department for the Fiscal Year Ended
        June 30, 2020 (A-77-21-00003)

        This report presents the Social Security Administration’s (SSA) portion of the single audit of the
        New Mexico Public Education Department for the Fiscal Year ended June 30, 2020. 1 The audit
        firm CliftonLarsonAllen LLP conducted the audit. Our objective was to report internal control
        weaknesses, noncompliance issues, and unallowable costs identified in the single audit to SSA
        for resolution action.

        BACKGROUND
        A single audit is an organization-wide financial statement and Federal awards audit of a
        non-Federal entity that expends $750,000 or more in Federal funds in 1 year. It is intended to
        assure the Government that a non-Federal entity has adequate internal controls in place and is
        generally in compliance with program requirements. Non-Federal entities typically include State
        and local governments, Indian tribes, universities, and nonprofit organizations.

        For single audit purposes, the Office of Management and Budget assigns Federal programs a
        Catalog of Federal Domestic Assistance (CFDA) number. CFDA number 96 identifies SSA’s
        Disability Insurance and Supplemental Security Income programs. SSA is responsible for
        resolving single audit findings reported under this CFDA number.

        New Mexico Disability Determination Services (DDS) performs disability determinations under
        SSA’s Disability Insurance and Supplemental Security Income programs in accordance with
        Federal regulations. SSA reimburses the DDS for 100 percent of allowable costs. The
        Department of Vocational Rehabilitation within the Public Education Department is New
        Mexico DDS’ parent agency.




        1
         State of New Mexico Public Education Department Financial Statements and Supplementary Information Year
        Ended June 30, 2020, vol. II (February 4, 2021).
Page 2 - Trae Sommer

RESULTS
The single audit reported New Mexico DDS did not

     have adequate controls to ensure it submits financial reports timely when the responsible
      person is unavailable 2 or
     always maintain documentation of medical license verifications. 3

We recommend SSA verify New Mexico DDS:

1. Cross-trained employees to ensure the timely submission of financial reports.

2. Established an appropriate process to maintain and document medical license verifications.

The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards requires that Federal awarding agencies issue a management decision on findings within
6 months of acceptance of the audit report by the Federal Audit Clearinghouse. The Federal
Audit Clearinghouse accepted the single audit of the State of New Mexico Public Education
Department on April 6, 2021.

Please send copies of the final Audit Clearance Document to OIG.Audit.Kansas.City@ssa.gov.




                                                 Michelle L. Anderson

Attachment




2
    See Footnote 1, Finding 2020-005.
3
    See Footnote 1, Finding 2020-006.
Mission:   The Social Security Office of the Inspector General (OIG) serves the
           public through independent oversight of SSA’s programs and operations.
Report:    Social Security-related scams and Social Security fraud, waste, abuse, and
           mismanagement, at oig.ssa.gov/report.
Connect:   OIG.SSA.GOV

           Visit our website to read about our audits, investigations, fraud alerts,
           news releases, whistleblower protection information, and more.

           Follow us on social media via these external links:



                  Twitter: @TheSSAOIG


                  Facebook: OIGSSA


                  YouTube: TheSSAOIG


                  Subscribe to email updates on our website.