RIO GRANDE HEADWATERS LAND TRUST

Finding 2024-001: North American Wetlands Conservation Fund Assistance Listing Number: 15.623 U.S. Department of Interior Pass-through: N/A Compliance Requirement: Reporting Grant No.: N/A Type of Finding: Internal Control Over Compliance (significant deficiency) and Compliance (noncompliance) Criteria: The Federal Funding and Accountability Transparency Act (FFATA) requires recipients who make first-tier subawards that equal or exceed $30,000 in federal funds to report each sub-award to the Federal Funding Accountability and Transparency Act Subaward Reporting System no later than the end of the month following the month in which the subaward was issued. Condition: The Organization did not report subaward activity as required by FFATA. Cause: Management was unaware of this reporting requirement. Questioned Costs: None Effect: The Organization did not comply with FFATA reporting requirements. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures that include the evaluation of grant terms and conditions to ensure compliance with reporting requirements. Management's Response: See Corrective Action Plan.

Finding 2023-001: Internal Control over Compliance Type of finding: Internal Control (material weakness) and Compliance (noncompliance) Criteria: The Report submission portion of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements (Subpart F: 2 CFR 200.512) requires that an auditee to submit the Single Audit reporting package and data collection form earlier of nine months after the end of the audit period or 30 calendar days after the Organization received the Auditors’ report. Condition: The Organization did not submit the Single Audit reporting package to the Federal Audit Clearinghouse and data collection form by the due date of September 30, 2024. Cause: The Organization does not have a system of internal control in place to perform year-end financial close and reporting in a timely manner. Effect: The Organization is not in compliance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements (Subpart F: 2 CFR 200.512). Recommendation: The Organization should strengthen its internal controls over year-end financial close and reporting with adopted policies and procedures to ensure compliance with the Report submission portion of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements section.