Audit 19216

FY End
2022-09-30
Total Expended
$2.08M
Findings
12
Programs
1
Year: 2022 Accepted: 2023-07-16

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
21856 2022-003 Significant Deficiency Yes AB
21857 2022-004 Significant Deficiency - I
21858 2022-005 Significant Deficiency - L
21859 2022-003 Significant Deficiency Yes AB
21860 2022-004 Significant Deficiency - I
21861 2022-005 Significant Deficiency - L
598298 2022-003 Significant Deficiency Yes AB
598299 2022-004 Significant Deficiency - I
598300 2022-005 Significant Deficiency - L
598301 2022-003 Significant Deficiency Yes AB
598302 2022-004 Significant Deficiency - I
598303 2022-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
15.518 Garrison Diversion Unit $597,615 Yes 3

Contacts

Name Title Type
GMWLJPQGQXL4 Kenneth Azure Auditee
7014776159 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the applicable cost principles contained in Title 2 U.S.Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards, wherein certain types of expenditures arenot allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule includes the federal grant award activity of the Public UtilitiesCommission under programs of the federal government for the year ended September 30, 2022.The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). The amounts reported on theschedule have been reconciled to and are in agreement with amounts recorded in the accountingrecords from which the financial statements have been reported.
Title: Subrecipients Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the applicable cost principles contained in Title 2 U.S.Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards, wherein certain types of expenditures arenot allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During 2022, the Public Utilities Commission did not pass any federal money to subrecipients.

Finding Details

Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Three disbursements did not contain required department head approval. Questioned Costs None Context Forty disbursements were selected for testing. Three disbursements did not have documentation of required department head approval. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Repeat Finding Yes Recommendation We recommend the Commission should review their policies and procedures for grant expenditures. Views of Responsible Officials Management will review its policies and procedures for grant expenditures.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition One contract did not have the required ?suspension and disbarment? verbiage listed in the contract. It was determined during the audit that the contractor was not suspended or debarred. Questioned Costs None Context Three contracts were selected for testing. One contract did not have the required ?suspension and debarment? verbiage listed in the contract. We also noted Public Utilities Commission does not have a board approved procurement policy to follow before making purchases. Effect There is an increased risk of Public Utilities Commission entering into a construction contact with a vendor who is on the suspended and debarred list. There is also an increased risk of making purchases that are not in accordance with federal requirements. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission should implement policies and procedures to ensure all federally funded construction projects have the suspension and debarment clause. The Commission should also implement policies and procedures to ensure all purchases follow federal requirements. Views of Responsible Officials Management will review its policies and procedures for monitoring suspended and debarred parties.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. Condition Two reports were filed late. Questioned Costs None Context All four quarterly reports for both the operating and capital grants were reviewed. Two reports were submitted late. Effect There is an increased risk that a report would not be submitted by the required due date. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission implement policies and procedures that ensure all reports are submitted by their required due date. Views of Responsible Officials Management will review its policies and procedures for grant reporting.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Three disbursements did not contain required department head approval. Questioned Costs None Context Forty disbursements were selected for testing. Three disbursements did not have documentation of required department head approval. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Repeat Finding Yes Recommendation We recommend the Commission should review their policies and procedures for grant expenditures. Views of Responsible Officials Management will review its policies and procedures for grant expenditures.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition One contract did not have the required ?suspension and disbarment? verbiage listed in the contract. It was determined during the audit that the contractor was not suspended or debarred. Questioned Costs None Context Three contracts were selected for testing. One contract did not have the required ?suspension and debarment? verbiage listed in the contract. We also noted Public Utilities Commission does not have a board approved procurement policy to follow before making purchases. Effect There is an increased risk of Public Utilities Commission entering into a construction contact with a vendor who is on the suspended and debarred list. There is also an increased risk of making purchases that are not in accordance with federal requirements. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission should implement policies and procedures to ensure all federally funded construction projects have the suspension and debarment clause. The Commission should also implement policies and procedures to ensure all purchases follow federal requirements. Views of Responsible Officials Management will review its policies and procedures for monitoring suspended and debarred parties.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. Condition Two reports were filed late. Questioned Costs None Context All four quarterly reports for both the operating and capital grants were reviewed. Two reports were submitted late. Effect There is an increased risk that a report would not be submitted by the required due date. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission implement policies and procedures that ensure all reports are submitted by their required due date. Views of Responsible Officials Management will review its policies and procedures for grant reporting.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Three disbursements did not contain required department head approval. Questioned Costs None Context Forty disbursements were selected for testing. Three disbursements did not have documentation of required department head approval. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Repeat Finding Yes Recommendation We recommend the Commission should review their policies and procedures for grant expenditures. Views of Responsible Officials Management will review its policies and procedures for grant expenditures.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition One contract did not have the required ?suspension and disbarment? verbiage listed in the contract. It was determined during the audit that the contractor was not suspended or debarred. Questioned Costs None Context Three contracts were selected for testing. One contract did not have the required ?suspension and debarment? verbiage listed in the contract. We also noted Public Utilities Commission does not have a board approved procurement policy to follow before making purchases. Effect There is an increased risk of Public Utilities Commission entering into a construction contact with a vendor who is on the suspended and debarred list. There is also an increased risk of making purchases that are not in accordance with federal requirements. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission should implement policies and procedures to ensure all federally funded construction projects have the suspension and debarment clause. The Commission should also implement policies and procedures to ensure all purchases follow federal requirements. Views of Responsible Officials Management will review its policies and procedures for monitoring suspended and debarred parties.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. Condition Two reports were filed late. Questioned Costs None Context All four quarterly reports for both the operating and capital grants were reviewed. Two reports were submitted late. Effect There is an increased risk that a report would not be submitted by the required due date. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission implement policies and procedures that ensure all reports are submitted by their required due date. Views of Responsible Officials Management will review its policies and procedures for grant reporting.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Three disbursements did not contain required department head approval. Questioned Costs None Context Forty disbursements were selected for testing. Three disbursements did not have documentation of required department head approval. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Repeat Finding Yes Recommendation We recommend the Commission should review their policies and procedures for grant expenditures. Views of Responsible Officials Management will review its policies and procedures for grant expenditures.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition One contract did not have the required ?suspension and disbarment? verbiage listed in the contract. It was determined during the audit that the contractor was not suspended or debarred. Questioned Costs None Context Three contracts were selected for testing. One contract did not have the required ?suspension and debarment? verbiage listed in the contract. We also noted Public Utilities Commission does not have a board approved procurement policy to follow before making purchases. Effect There is an increased risk of Public Utilities Commission entering into a construction contact with a vendor who is on the suspended and debarred list. There is also an increased risk of making purchases that are not in accordance with federal requirements. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission should implement policies and procedures to ensure all federally funded construction projects have the suspension and debarment clause. The Commission should also implement policies and procedures to ensure all purchases follow federal requirements. Views of Responsible Officials Management will review its policies and procedures for monitoring suspended and debarred parties.
Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. Condition Two reports were filed late. Questioned Costs None Context All four quarterly reports for both the operating and capital grants were reviewed. Two reports were submitted late. Effect There is an increased risk that a report would not be submitted by the required due date. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission implement policies and procedures that ensure all reports are submitted by their required due date. Views of Responsible Officials Management will review its policies and procedures for grant reporting.