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Audit 294076

FY End
2023-06-30
Total Expended
$2.76M
Findings
10
Programs
1
Organization: Warren Rural Electric Cooperative Corporation INC (KY)
Year: 2023 Accepted: 2024-03-07
Auditor: Carr Riggs & Ingram

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
374412 2023-003 Significant Deficiency - H
374413 2023-003 Significant Deficiency - H
374414 2023-003 Significant Deficiency - H
374415 2023-003 Significant Deficiency - H
374416 2023-003 Significant Deficiency - H
950854 2023-003 Significant Deficiency - H
950855 2023-003 Significant Deficiency - H
950856 2023-003 Significant Deficiency - H
950857 2023-003 Significant Deficiency - H
950858 2023-003 Significant Deficiency - H

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.42M Yes 1

Contacts

Name Title Type
SXRRM744CJ26 Amanda Hunley Auditee
2708426541 Jennifer O'Connor 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. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through idenitifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: WRECC has elected no to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the "schedule") includes the federal grant activity of Warren Rural Electrical Cooperative Corporation ("WRECC") under programs of the federal government for the year ended June 30, 2023. the information in this scheudle 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 (Uniform Guidance). Because the scheudle presents only a selected portion of the operations of WRECC, it is not intended to and does not present the financial position, changes in net position or cash flows of WRECC
Title: Loans and Loan Guarantees 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through idenitifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: WRECC has elected no to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance WRECC did not have any loans or loan guarantee programs required to be reported on the schedule.
Title: Contingencies 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through idenitifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: WRECC has elected no to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Grant monies received and disbursed by WRECC are for specific purposes and are subject to review by grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon experience, WRECC does not bellieve that such disallowance, if any, would have a material effect on the consolidated financial position of WRECC.
Title: Subrecipients 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through idenitifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: WRECC has elected no to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance WRECC did not provide federal funds to subrecipients for the fiscal year ended June 30, 2023

Finding Details

Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.
Finding 2023-003
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant Effect: The cost of the assistance may be disallowed Questioned Costs: N/A Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722 Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.