FAC Explorer

Audit 22300

FY End
2022-12-31
Total Expended
$1.15M
Findings
2
Programs
1
Organization: Mille Lacs Energy Cooperative (MN)
Year: 2022 Accepted: 2023-07-04
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
16023 2022-002 Significant Deficiency - P
592465 2022-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.863 Community Connect Grant Program $1.15M Yes 1

Contacts

Name Title Type
DKJFK45MCQM3 Lincoln Messner Auditee
2189278230 Derek Flanagan 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. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activityof Mille Lacs Energy Cooperative (the Cooperative) under programs of the federal government for the yearended December 31, 2022. The information is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion ofthe operations of the Cooperative, it is not intended to and does not present the balance sheets, statements ofoperations, statements of members equity, or cash flows of the Cooperative.

Finding Details

Finding 2022-002
2022-002 United States Department of Agriculture 10.863 Preparation of the Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria ? Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition ? The Cooperative does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause ? Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required with the Cooperative meets a specified threshold of federal expenditures. Effect ? There is a reasonable possibility that the Cooperative would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs ? None reported. Context ? Sampling was not used. Repeat Finding from Prior Years ? No Recommendation ? We recommend management be aware of the financial reporting requirements relating to the Cooperative?s schedule of expenditures of federal awards and internal controls that impact financial reporting. Views of Responsible Officials ? Management agrees with the finding.
Finding 2022-002
2022-002 United States Department of Agriculture 10.863 Preparation of the Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria ? Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition ? The Cooperative does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause ? Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required with the Cooperative meets a specified threshold of federal expenditures. Effect ? There is a reasonable possibility that the Cooperative would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs ? None reported. Context ? Sampling was not used. Repeat Finding from Prior Years ? No Recommendation ? We recommend management be aware of the financial reporting requirements relating to the Cooperative?s schedule of expenditures of federal awards and internal controls that impact financial reporting. Views of Responsible Officials ? Management agrees with the finding.