FAC Explorer

Audit 1254

FY End
2023-06-30
Total Expended
$8.73M
Findings
2
Programs
1
Organization: Cumberland Electric Membership Corporation (TN)
Year: 2023 Accepted: 2023-10-25
Auditor: Stone Rudolph & Henry Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
674 2023-001 - - B
577116 2023-001 - - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $8.73M Yes 1

Contacts

Name Title Type
HRN4MKPY1548 Chris Davis Auditee
9316452481 Ben Carroll Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A – Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the Cooperative and is presented on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE B – Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Cooperative has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: CEMC did not use the de minimis cost rate.

Finding Details

Finding 2023-001
2023-001 Duplicate Invoices – CFDA #21.027, Tennessee Emergency Broadband Fund Grant Condition: The population of grant expenditure invoices for the year ended June 30, 2023, was comprised of 615 invoices totaling $8,979,054. This population included nine duplicate invoices totaling $252,155. Two of the invoices totaling $71,050 were included on grant reimbursement submissions, but the grant funds have not yet been received. The remaining seven invoices totaling $181,105 have not yet been submitted for reimbursement. The duplicate invoices have been removed from the population of grant expenditure invoices and are not reflected in the financial statements. Criteria: Requests for grant expenditure reimbursement should include expenditures incurred during grant activity and should not include duplicate invoices. Cause: The Group had a very short period of time to prepare the list of grant invoices and some invoices were duplicated. Effect: The population of grant expenditure invoices included duplicate invoices. Recommendation: We recommend the Group implement procedures to ensure invoices are only included once on grant expenditure submissions. Response: Management has recalled the two duplicate invoices submitted for reimbursement and will amend future submissions to remove the duplicate invoices noted. Management will implement procedures to ensure only unique invoices are included in future grant reimbursement submissions.
Finding 2023-001
2023-001 Duplicate Invoices – CFDA #21.027, Tennessee Emergency Broadband Fund Grant Condition: The population of grant expenditure invoices for the year ended June 30, 2023, was comprised of 615 invoices totaling $8,979,054. This population included nine duplicate invoices totaling $252,155. Two of the invoices totaling $71,050 were included on grant reimbursement submissions, but the grant funds have not yet been received. The remaining seven invoices totaling $181,105 have not yet been submitted for reimbursement. The duplicate invoices have been removed from the population of grant expenditure invoices and are not reflected in the financial statements. Criteria: Requests for grant expenditure reimbursement should include expenditures incurred during grant activity and should not include duplicate invoices. Cause: The Group had a very short period of time to prepare the list of grant invoices and some invoices were duplicated. Effect: The population of grant expenditure invoices included duplicate invoices. Recommendation: We recommend the Group implement procedures to ensure invoices are only included once on grant expenditure submissions. Response: Management has recalled the two duplicate invoices submitted for reimbursement and will amend future submissions to remove the duplicate invoices noted. Management will implement procedures to ensure only unique invoices are included in future grant reimbursement submissions.