We audited the costs claimed by the New Mexico Department of Game and Fish (Department) under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program. We conducted this audit to determine whether the Department used grant funds and State hunting and fishing license revenue for allowable fish and wildlife activities and complied with applicable laws and regulations, FWS guidelines, and grant agreements. The audit period included claims totaling $94 million on 85 grants that were open during the State fiscal years that ended June 30, 2017, and June 30, 2018.
We found that the State generally ensured that grant funds and State hunting and fishing license revenue were used for allowable fish and wildlife activities and complied with applicable laws and regulations, FWS guidelines, and grant agreements. We noted, however, issues with unsupported other direct costs, ineligible out-of-period costs, and many other areas. We questioned costs totaling $51,715 ($38,786 Federal share) as ineligible and $388,018 ($291,014 Federal share) as unsupported. We questioned excess reimbursement in the amount of $32,788 as ineligible due to unreported program income. We also determined the Department failed to follow regulations to eliminate free and duplicate license holders, resulting in inaccurate license certification data. In addition, the Department did not have policies for subawards and it failed to follow regulations for the acquisition of real property.
In response to our draft report, the FWS concurred with all 21 recommendations and will work with the Department to implement corrective actions.