FAC Explorer

Audit 295000

FY End
2021-12-31
Total Expended
$7.35M
Findings
2
Programs
1
Organization: Middle Tennessee Electric Membership Corporation (TN)
Year: 2021 Accepted: 2024-03-13
Auditor: Jackson Thornton & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
375948 2021-001 Significant Deficiency - B
952390 2021-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $7.35M Yes 1

Contacts

Name Title Type
YQGDD8SB5CP9 Cindy Layne Auditee
6154941582 Erica Bailey Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Middle Tennessee Electric Membership Corporation and Subsidiary (the Corporation) under programs of the federal government for the year ended December 31, 2021. Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Overhead costs were charged directly to the projects submitted for reimbursement. The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Middle Tennessee Electric Membership Corporation and Subsidiary (the Corporation) under programs of the federal government for the year ended December 31, 2021. Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: Note 2 - Reporting Entity Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Middle Tennessee Electric Membership Corporation and Subsidiary (the Corporation) under programs of the federal government for the year ended December 31, 2021. Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Overhead costs were charged directly to the projects submitted for reimbursement. The Corporation's reporting entity is fully described in Note 1 to the consolidated financial statements.
Title: Note 3 - Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Middle Tennessee Electric Membership Corporation and Subsidiary (the Corporation) under programs of the federal government for the year ended December 31, 2021. Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Overhead costs were charged directly to the projects submitted for reimbursement. The Corporation has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Title: Note 4 - Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Middle Tennessee Electric Membership Corporation and Subsidiary (the Corporation) under programs of the federal government for the year ended December 31, 2021. Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Overhead costs were charged directly to the projects submitted for reimbursement. There were no awards passed through to subrecipients.

Finding Details

Finding 2021-001
Condition - Project Worksheet #136175 submitted to FEMA for reimbursement of 90% of the cost incurred during the Presidentially Declared Disaster did not agree to supporting documentation. Criteria - Eligibility for reimbursement for Presidentially Declared Disasters, the costs must be directly tied to the performance of eligible work, adequately documented, reduced by all applicable credits, authorized and not prohibited under Federal or SL TT government laws or regulations, consistent with the Applicant's internal policies, regulations, and procedures that apply uniformly to both Federal awards and other activities of the Applicant, and necessary and reasonable to accomplish the work properly and efficiently. Cause - Procedures were not in place for supervisory approval of documentation before submission to FEMA for reimbursement of 90% of cost incurred. Effect - The cost submitted for Project Worksheet #136175 was overstated by $79,284.82 of total dollars requested for reimbursement. Recommendation - The Corporation should implement procedures to review of the Project's worksheets before submission to FEMA by someone independent of the preparation process. Views of responsible officials - The Corporation agrees with the finding and has resubmitted the Project Worksheet #136175 to FEMA. The Corporation will adjust their procedures of federal awards and require review by someone independent of the preparation process.
Finding 2021-001
Condition - Project Worksheet #136175 submitted to FEMA for reimbursement of 90% of the cost incurred during the Presidentially Declared Disaster did not agree to supporting documentation. Criteria - Eligibility for reimbursement for Presidentially Declared Disasters, the costs must be directly tied to the performance of eligible work, adequately documented, reduced by all applicable credits, authorized and not prohibited under Federal or SL TT government laws or regulations, consistent with the Applicant's internal policies, regulations, and procedures that apply uniformly to both Federal awards and other activities of the Applicant, and necessary and reasonable to accomplish the work properly and efficiently. Cause - Procedures were not in place for supervisory approval of documentation before submission to FEMA for reimbursement of 90% of cost incurred. Effect - The cost submitted for Project Worksheet #136175 was overstated by $79,284.82 of total dollars requested for reimbursement. Recommendation - The Corporation should implement procedures to review of the Project's worksheets before submission to FEMA by someone independent of the preparation process. Views of responsible officials - The Corporation agrees with the finding and has resubmitted the Project Worksheet #136175 to FEMA. The Corporation will adjust their procedures of federal awards and require review by someone independent of the preparation process.