RIO GRANDE COUNTY

Finding 2025-004: Schools and Roads Cluster, Assistance Listing No. 10.665, U.S. Department of Agriculture Compliance Requirement: Activities Allowed and Unallowed, Allowable Costs/Cost Principles Grant No.: Not applicable Type of Finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: Under 16 USC 500, Schools and Roads funds are required to be used for the benefit of public roads and schools of the county in which the national forest is situated. Accordingly, the County is responsible for ensuring that approved distributions of Schools and Roads funds are transferred and used in accordance with the approved allocation and applicable federal requirements. Condition: The County approved a distribution of $42,764 to the Road and Bridge Fund. However, only $26,893 was transferred to the Road and Bridge Fund. Cause: The County did not have effective internal controls in place to ensure the approved distributions of Schools and Roads funds were completely and accurately transferred to the Road and Bridge Fund. Effect: The Road and Bridge Fund did not receive the full approved distribution of Schools and Roads funds resulting in $15,871 remaining in the General Fund rather than being transferred as approved. An audit adjustment was posted to record a due to/due from between the General Fund and the Road and Bridge Fund as of December 31, 2025. Questioned Costs: None Recommendation: The County should continue to strengthen its internal controls over the review, approval, and transfer of Schools and Roads funds to ensure that approved distributions are complete, accurate, and consistent with approved distribution amounts.