FAC Explorer

Audit 321061

FY End
2023-12-31
Total Expended
$4.06M
Findings
16
Programs
2
Organization: East Central Energy (MN)
Year: 2023 Accepted: 2024-09-25
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498310 2023-001 Significant Deficiency - I
498311 2023-002 Significant Deficiency - I
498312 2023-001 Significant Deficiency - I
498313 2023-002 Significant Deficiency - I
498314 2023-001 Significant Deficiency - I
498315 2023-002 Significant Deficiency - I
498316 2023-001 Significant Deficiency - I
498317 2023-002 Significant Deficiency - I
1074752 2023-001 Significant Deficiency - I
1074753 2023-002 Significant Deficiency - I
1074754 2023-001 Significant Deficiency - I
1074755 2023-002 Significant Deficiency - I
1074756 2023-001 Significant Deficiency - I
1074757 2023-002 Significant Deficiency - I
1074758 2023-001 Significant Deficiency - I
1074759 2023-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.029 Coronavirus Capital Projects Fund $228,166 Yes 2
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3,913 - 0

Contacts

Name Title Type
HBXWH1P95E33 Lisa Prachar Auditee
7636898014 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: N Rate Explanation: East Central Energy and Subsidiaries has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of East Central Energy and Subsidiaries 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 East Central Energy and Subsidiaries it is not intended to and does not present the financial position, change in net position, or cash flows of the East Central Energy and Subsidiaries.
Title: PASS-THROUGH ENTITIES 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: N Rate Explanation: East Central Energy and Subsidiaries has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available.

Finding Details

Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-001
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria 2 CFR Part 200.318 states that a non-Federal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of 2 CFR part 200.317 through 200.327. Condition East Central Energy and Subsidiaries does not have a written procurement policy in place that adheres to Federal minimum standards. Cause East Central Energy and Subsidiaries does not have a written procurement policy that adheres to Federal minimum standards. Questioned Costs None Context Per inquiry with East Central Energy and Subsidiaries management, they do not have a procurement policy in place that adheres to Federal minimum standards. Effect Non-compliance with Procurement compliance requirements. This could result in East Central Energy and Subsidiaries not following state and local regulations as well as 2 CFR Part 200.317 through 200.327. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a procurement policy that adheres to state and local regulations as well as 2 CFR Part 200.317 through 200.327. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.
Finding 2023-002
Federal Program Coronavirus Capital Projects Fund (AL 21.029) Procurement Suspended and Debarred Parties Significant Deficiency Criteria Non-Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g. grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR part 180.220. Condition East Central Energy and Subsidiaries is not currently reviewing parties they are contracting with to ensure they are not suspended or debarred. It is noted, however, that no contractors hired by East Central Energy and Subsidiaries were listed on the suspended or debarred parties listing. Cause East Central Energy and Subsidiaries does not have written policies or procedures addressing contracting with suspended or debarred parties Questioned Costs None Context East Central Energy and Subsidiaries contracted with two contractors during the year. We tested both of these contractors and found both were not included on the suspended and debarred parties listing. Effect Non-compliance with Suspension & Debarment compliance requirements. This could result in East Central Energy and Subsidiaries contracting with a suspended or debarred party. Repeat Finding This is not a repeat finding. Recommendation Recommend for East Central Energy and Subsidiaries to create and implement a policy that to ensure all contracted parties are not included on the Federal suspended or debarred party listing, in accordance with 2 CFR part 180.220. Views of Responsible Officials East Central Energy and Subsidiaries agrees with the recommendation.