FAC Explorer

Audit 296983

FY End
2023-12-31
Total Expended
$1.31M
Findings
2
Programs
1
Organization: Corn Belt Power Cooperative (IA)
Year: 2023 Accepted: 2024-03-25
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
383960 2023-001 Material Weakness - ABH
960402 2023-001 Material Weakness - ABH

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.31M Yes 1

Contacts

Name Title Type
TBL7BQ3BA2Y5 Karen Berte Auditee
5153327731 Stacey Nelson 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, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Cooperative does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Corn Belt Power Cooperative (the Cooperative) under programs of the federal government for the year ended December 31, 2023. 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 Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Cooperative, it is not intended to and does not present the balance sheet, statements of revenue and expenses, comprehensive income, membership capital, or cash flows of the Cooperative.
Title: Disaster Grants – Public Assistance Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Cooperative does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Per the OMB Compliance Supplement, nonfederal entities must record expenditures on the schedule of expenditures of federal awards when FEMA has approved the entity’s project. These expenditures were incurred in fiscal years 2021 and 2022 but approved for payment by the federal agency in 2023 and therefore are included in the schedule when approved.

Finding Details

Finding 2023-001
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.036, 4642DRIAP00000501 Disaster Grants – Public Assistance Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Materials and transportation costs were claimed for reimbursement with no documented formal review and approval. Cause: The Cooperative did not have any formally documented review and approval over the material and transportation costs claimed for reimbursement under the program. Effect: Without a formal documentation of review of expenses, demonstrating the expenditures comply with federal regulations is difficult. Questioned Costs: No questioned costs over $25,000. Context/Sampling: A nonstatistical sample of 60 transactions were selected for testing, which accounted for $963,000 of $1,310,794 of federal program expenditures. Repeat Finding form Prior Year: No Recommendation: We recommend the Cooperative review the process for documenting the review and approval over material and transportation costs. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-001
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.036, 4642DRIAP00000501 Disaster Grants – Public Assistance Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Materials and transportation costs were claimed for reimbursement with no documented formal review and approval. Cause: The Cooperative did not have any formally documented review and approval over the material and transportation costs claimed for reimbursement under the program. Effect: Without a formal documentation of review of expenses, demonstrating the expenditures comply with federal regulations is difficult. Questioned Costs: No questioned costs over $25,000. Context/Sampling: A nonstatistical sample of 60 transactions were selected for testing, which accounted for $963,000 of $1,310,794 of federal program expenditures. Repeat Finding form Prior Year: No Recommendation: We recommend the Cooperative review the process for documenting the review and approval over material and transportation costs. Views of Responsible Officials: Management agrees with the finding.