FAC Explorer

Audit 305074

FY End
2023-06-30
Total Expended
$2.58M
Findings
2
Programs
1
Organization: Energy Northwest (WA)
Year: 2023 Accepted: 2024-04-30
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395189 2023-001 Significant Deficiency - N
971631 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
81.121 Nuclear Energy Research, Development and Demonstration $9,222 Yes 0

Contacts

Name Title Type
M8ZWBTCAV4H5 Cristina Reyff Auditee
5093774028 Jodi Dobson 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. Expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Energy Northwest has not elected to use the 10 percent de minimis indirect cost rate The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Energy Northwest under programs of the federal government for the year ended June 30, 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 the operations of Energy Northwest, it is not intended to and does not present the financial position, changes in net position or cash flows of Energy Northwest.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Energy Northwest has not elected to use the 10 percent de minimis indirect cost rate Expenditures reported on the Schedule are reported on the accrual basis of accounting (i.e. when the revenue has been earned and the liability is incurred). 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. Pass-through entity identifying numbers are presented where available.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Energy Northwest has not elected to use the 10 percent de minimis indirect cost rate Energy Northwest has not elected to use the 10 percent de minimis indirect cost rate.

Finding Details

Finding 2023-001
Criteria: Per the terms of the Natrium Project Advanced Reactor Demonstration Program (ARDP) Subrecipient Services Agreement between Terra Power, LLC (the Company), and Energy Northwest (Subrecipient) Dated as of May 6, 2022, Section 5.2.1 states: Promptly after each Subrecipient Fiscal Year End, subrecipient shall provide to Company, annually not later than the date that is 90 days after such Subrecipient Fiscal Year End, an annual indirect cost rate proposal, reconciled to the Subrecipient's financial statements and costs incurred for items included in the indirect cost rate (with respect to each year an "Annual Indirect Rate Proposal"). Condition: For the fiscal year-ending June 30, 2023, Energy Northwest did not submit an annual indirect cost rate proposal reconciled their financial statements within 90 days of year-end. Cause: Energy Northwest did not have a process in place to identify and track all special terms and provisions of the subrecipient agreement, resulting in the indirect cost rate proposal not being provided to TerraPower, LLC, within the specified deadline. Effect: Non-compliance with the contract provisions could result in a delay in the audit of the annual indirect cost rate proposal as well as a delay in application of the updated indirect cost rate. Questioned Costs: None noted Recommendation: Energy Northwest should develop a compliance checklist for each federal grant agreement that outlines the various requirements and the applicable deadlines. The compliance checklist should be reviewed by a second individual for accuracy. Management Response: Energy Northwest Management understands it is our responsibility to have adequate controls to ensure we comply with all provisions of federal grant contracts. We agree with the auditor’s recommendation and subsequently EN will create a compliance checklist for each federal grant contract to ensure all requirements are complied with according to the specified timelines. This will strengthen our existing controls related to federal grant contracts. To ensure we have the right picture we will also confirm on subrecipient grants our understanding of the requirements.
Finding 2023-001
Criteria: Per the terms of the Natrium Project Advanced Reactor Demonstration Program (ARDP) Subrecipient Services Agreement between Terra Power, LLC (the Company), and Energy Northwest (Subrecipient) Dated as of May 6, 2022, Section 5.2.1 states: Promptly after each Subrecipient Fiscal Year End, subrecipient shall provide to Company, annually not later than the date that is 90 days after such Subrecipient Fiscal Year End, an annual indirect cost rate proposal, reconciled to the Subrecipient's financial statements and costs incurred for items included in the indirect cost rate (with respect to each year an "Annual Indirect Rate Proposal"). Condition: For the fiscal year-ending June 30, 2023, Energy Northwest did not submit an annual indirect cost rate proposal reconciled their financial statements within 90 days of year-end. Cause: Energy Northwest did not have a process in place to identify and track all special terms and provisions of the subrecipient agreement, resulting in the indirect cost rate proposal not being provided to TerraPower, LLC, within the specified deadline. Effect: Non-compliance with the contract provisions could result in a delay in the audit of the annual indirect cost rate proposal as well as a delay in application of the updated indirect cost rate. Questioned Costs: None noted Recommendation: Energy Northwest should develop a compliance checklist for each federal grant agreement that outlines the various requirements and the applicable deadlines. The compliance checklist should be reviewed by a second individual for accuracy. Management Response: Energy Northwest Management understands it is our responsibility to have adequate controls to ensure we comply with all provisions of federal grant contracts. We agree with the auditor’s recommendation and subsequently EN will create a compliance checklist for each federal grant contract to ensure all requirements are complied with according to the specified timelines. This will strengthen our existing controls related to federal grant contracts. To ensure we have the right picture we will also confirm on subrecipient grants our understanding of the requirements.