Aug. 21—For the third time in three years, the New Mexico Department of Homeland Security and Emergency Management has been unable to accurately track federal expenditures, according to an external audit.
The department's 2021 audit found six "material" weaknesses in internal controls over financial reporting and compliance.
All of them were repeat findings from the two previous years.
The audit, which was late, reported 16 findings total. In addition to the six material weaknesses, the audit found six "significant" deficiencies, four of which were repeat findings.
"The Department is not in compliance with applicable financial reporting policies and requirements of the State," according to the audit.
"Overall, the Department lacks an effective control environment that allows for timely and accurate financial reporting," the audit added.
Kelly Hamilton, the department's deputy Cabinet secretary, said the department is working to remedy the deficiencies.
"Process improvement is a continuing priority for the fiscal staff of the Agency," Hamilton wrote in an email. "With support from our sister agencies, the Agency is building on an increasingly strong financial position to ensure administrative support to field staff and local governments."
In some of the findings, the audit states, "management failed to implement adequate controls to resolve" the deficiencies from the prior years.
The audit notes the department has experienced turnover in its Financial Services Unit and has been without a chief financial officer since April 2021.
Hamilton said the agency has made "significant strides" in its management of federal and state funds.
"The fiscal staff interacts closely with the Department of Finance [and] Administration to ensure disbursement compliance in addition to a timely federal funds reconciliation process," he wrote. "In addition, staff meets with federal oversight, weekly."
In a letter to Cabinet Secretary Bianca Ortiz Wertheim, the auditor, CliftonLarsonAllen LLP, wrote it was unable to obtain "sufficient appropriate audit evidence relating to the completeness, existence, accuracy, and valuation of the Department's federal revenue, accounts receivable/payable" and other financial information.
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