FAC Explorer

Audit 295665

FY End
2023-12-31
Total Expended
$865,642
Findings
2
Programs
2
Organization: Minnkota Power Cooperative, Inc. (ND)
Year: 2023 Accepted: 2024-03-18
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380940 2023-001 Significant Deficiency - L
957382 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
97.039 Hazard Mitigation Grant $570,470 Yes 1
81.089 Fossil Energy Research and Development $295,172 - 0

Contacts

Name Title Type
RJUEADS62BM5 Kay Schraeder Auditee
7017954266 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Minnkota Power Cooperative has elected to use the 10% de minimis cost rate as applicable. The Schedule includes the federal award activity of Minnkota Power Cooperative under programs of the federal government for the year ended December 31, 2023. 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). Because the Schedule presents only a selected portion of operations of Minnkota Power Cooperative, it is not intended to and does not present the financial position, change in net equities, or cash flows of the Minnkota Power Cooperative.

Finding Details

Finding 2023-001
Federal Program Hazard Mitigation Grant (AL 97.039) Federal Award Number and Year - FEMA-4660-DR-ND, 2022 Reporting Significant Deficiency Criteria Minnkota Power Cooperative, Inc., omitted reimbursement of $63,039 of federal expenditures during the year. Also, a system of internal controls requires all federal reports to be reviewed and approved before they are submitted. Condition We noted that Minnkota Power Cooperative, Inc. omitted reimbursement of $63,039 of federal expenditures during the year but this was found and corrected during the single audit. Furthermore, we tested 2 quarterly reports in a population of 3 and noted there was no review or approval of reports before they were submitted to ensure accuracy and timeliness of reports. Cause Lack of oversight by management Questioned Costs None Context Minnkota Power Cooperative, Inc. omitted reimbursement of $63,039 of federal expenditures. Also, 2 reports were selected from a population of 3. Effect Minnkota Power Cooperative, Inc. is not in compliance with Uniform Guidance. Also, there is an increased risk of a report being submitted inaccurately or late. Repeat Finding New finding Recommendation Minnkota Power Cooperative, Inc. should implement policies and procedures to ensure all federal dollars they are entitled to are being obtained. Furthermore, Minnkota Power Cooperative, Inc. should implement policies and procedures that will ensure all reports are reviewed and approved before they are submitted. Views of Responsible Officials Minnkota Power Cooperative, Inc. agrees with the recommendation.
Finding 2023-001
Federal Program Hazard Mitigation Grant (AL 97.039) Federal Award Number and Year - FEMA-4660-DR-ND, 2022 Reporting Significant Deficiency Criteria Minnkota Power Cooperative, Inc., omitted reimbursement of $63,039 of federal expenditures during the year. Also, a system of internal controls requires all federal reports to be reviewed and approved before they are submitted. Condition We noted that Minnkota Power Cooperative, Inc. omitted reimbursement of $63,039 of federal expenditures during the year but this was found and corrected during the single audit. Furthermore, we tested 2 quarterly reports in a population of 3 and noted there was no review or approval of reports before they were submitted to ensure accuracy and timeliness of reports. Cause Lack of oversight by management Questioned Costs None Context Minnkota Power Cooperative, Inc. omitted reimbursement of $63,039 of federal expenditures. Also, 2 reports were selected from a population of 3. Effect Minnkota Power Cooperative, Inc. is not in compliance with Uniform Guidance. Also, there is an increased risk of a report being submitted inaccurately or late. Repeat Finding New finding Recommendation Minnkota Power Cooperative, Inc. should implement policies and procedures to ensure all federal dollars they are entitled to are being obtained. Furthermore, Minnkota Power Cooperative, Inc. should implement policies and procedures that will ensure all reports are reviewed and approved before they are submitted. Views of Responsible Officials Minnkota Power Cooperative, Inc. agrees with the recommendation.