FAC Explorer

Audit 321423

FY End
2023-12-31
Total Expended
$11.64M
Findings
6
Programs
5
Organization: Alaska Village Electric Cooperative, Inc. and Subsidiary (AK)
Year: 2023 Accepted: 2024-09-26
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498740 2023-002 Significant Deficiency - I
498741 2023-002 Significant Deficiency - I
498742 2023-002 Significant Deficiency - I
1075182 2023-002 Significant Deficiency - I
1075183 2023-002 Significant Deficiency - I
1075184 2023-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.85M Yes 0
90.100 Denali Commission Program $2.33M Yes 1
81.087 Renewable Energy Research and Development $700,734 Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $49,205 - 0
66.040 Diesel Emissions Reduction Act (dera) State Grants $1,133 - 0

Contacts

Name Title Type
RU1PSRZHGGK5 Debra Caldwell Auditee
9075655327 Joy Merriner Auditor
No contacts on file

Notes to SEFA

Title: Assistance Listing 90.100 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Alaska Village Electric Cooperative, Inc. and Subsidiary 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 the operations of Alaska Village Electric Cooperative, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in patronage capital or cash flows of Alaska Village Electric Cooperative, Inc. and Subsidiary. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Alaska Village Electric Cooperative, Inc. and Subsidiary has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative reported Denali Commission Program expenditures of $257,257, which were associated with prior period expenditures.
Title: Assistance Listing 81.087 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Alaska Village Electric Cooperative, Inc. and Subsidiary 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 the operations of Alaska Village Electric Cooperative, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in patronage capital or cash flows of Alaska Village Electric Cooperative, Inc. and Subsidiary. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Alaska Village Electric Cooperative, Inc. and Subsidiary has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative’s expenditures under the Renewable Energy Research and Development program are reduced by $64,316 in 2023 for expenditures which, after being reported on the SEFA under this program in 2022, were subsequently reimbursed through different funding sources.
Title: Assistance Listing 97.036 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Alaska Village Electric Cooperative, Inc. and Subsidiary 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 the operations of Alaska Village Electric Cooperative, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in patronage capital or cash flows of Alaska Village Electric Cooperative, Inc. and Subsidiary. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Alaska Village Electric Cooperative, Inc. and Subsidiary has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative reported Disaster Grants – Public Assistance program expenditures of $625,272, which were associated with prior period expenditures.

Finding Details

Finding 2023-002
Finding 2023-002 Procurement and Suspension and Debarment – Significant Deficiency in Internal Control Over Compliance Agency/Pass-through Grantor Denali Commission, Denali Commission passed through Alaska Energy Authority, Department of Energy ALN and Program Name 90.100 – Denali Commission Program 81.087 – Research and Development Cluster Award # 7110096, 7210049, 1750-01, 1686-02, 1693-00, 1605-02, 1546-06, 1561-06, 1654-00, 1724-00, 1511-05, 1423-10, 1517-10, 1545-09, 1711-00, 1721-01, 1834-00, DE-IE0000098, DE-IE0000173 Award Year 90.100 – 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 81.087 – 2019, 2023 Criteria or Specific Requirement The regulations in 2 CFR Part 180 prohibits contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities. Non-federal entities must verify that parties to covered transactions are not suspended or debarred or otherwise excluded from participating in the transaction. Condition Testing of 21 procurements identified 19 exceptions where evidence was not retained to support the required verification of whether a contractor or subrecipient was a suspended or debarred party. Cause The Cooperative’s policies over procurement and issuance of sub-awards were not designed appropriately to retain evidence of suspension and debarment review for all contracts or sub-awards funded with federal awards. Effect or Potential Effect By failing to retain documentation over procedures performed, the Cooperative is unable to substantiate that its procurements were appropriately reviewed to ensure compliance in accordance with regulations in 2 CFR Part 180. Questioned costs None. Context For the Denali Commission Program, we tested a sample of 20 procurements, consisting of 18 purchase orders and 2 task orders, totaling to $721,671. The purchase order population of 36 items totaled to $1,477,400, and the task order population of 3 items totaled to $319,123. BDO did not identify any vendors that the Cooperative entered into covered transactions with, wherein the vendor was disbarred. In addition, BDO identified that the Cooperative appropriately documented that vendors were checked for suspension and debarment before entering into task orders for procurements related to construction projects. However, the Cooperative did not retain sufficient documentation to substantiate that purchase orders for smaller procurements were checked for suspended or debarred vendors before their execution. For the Research and Development Cluster, we tested a sample of 1 procurement, consisting of 1 purchase order, totaling to $45,022. The procurement tested was the entire population of procurements during the year that were not micropurchases. The Cooperative did not retain sufficient documentation to substantiate that purchase order was checked for suspended or debarred vendors before its execution. Identification as a Repeat Finding Not a repeat finding. Views of Responsible Officials Management agrees with the findings and is working to revise our policies and procedures to improve retention of evidence and documentation over the procedures performed which ensure and substantiate compliance with regulations.
Finding 2023-002
Finding 2023-002 Procurement and Suspension and Debarment – Significant Deficiency in Internal Control Over Compliance Agency/Pass-through Grantor Denali Commission, Denali Commission passed through Alaska Energy Authority, Department of Energy ALN and Program Name 90.100 – Denali Commission Program 81.087 – Research and Development Cluster Award # 7110096, 7210049, 1750-01, 1686-02, 1693-00, 1605-02, 1546-06, 1561-06, 1654-00, 1724-00, 1511-05, 1423-10, 1517-10, 1545-09, 1711-00, 1721-01, 1834-00, DE-IE0000098, DE-IE0000173 Award Year 90.100 – 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 81.087 – 2019, 2023 Criteria or Specific Requirement The regulations in 2 CFR Part 180 prohibits contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities. Non-federal entities must verify that parties to covered transactions are not suspended or debarred or otherwise excluded from participating in the transaction. Condition Testing of 21 procurements identified 19 exceptions where evidence was not retained to support the required verification of whether a contractor or subrecipient was a suspended or debarred party. Cause The Cooperative’s policies over procurement and issuance of sub-awards were not designed appropriately to retain evidence of suspension and debarment review for all contracts or sub-awards funded with federal awards. Effect or Potential Effect By failing to retain documentation over procedures performed, the Cooperative is unable to substantiate that its procurements were appropriately reviewed to ensure compliance in accordance with regulations in 2 CFR Part 180. Questioned costs None. Context For the Denali Commission Program, we tested a sample of 20 procurements, consisting of 18 purchase orders and 2 task orders, totaling to $721,671. The purchase order population of 36 items totaled to $1,477,400, and the task order population of 3 items totaled to $319,123. BDO did not identify any vendors that the Cooperative entered into covered transactions with, wherein the vendor was disbarred. In addition, BDO identified that the Cooperative appropriately documented that vendors were checked for suspension and debarment before entering into task orders for procurements related to construction projects. However, the Cooperative did not retain sufficient documentation to substantiate that purchase orders for smaller procurements were checked for suspended or debarred vendors before their execution. For the Research and Development Cluster, we tested a sample of 1 procurement, consisting of 1 purchase order, totaling to $45,022. The procurement tested was the entire population of procurements during the year that were not micropurchases. The Cooperative did not retain sufficient documentation to substantiate that purchase order was checked for suspended or debarred vendors before its execution. Identification as a Repeat Finding Not a repeat finding. Views of Responsible Officials Management agrees with the findings and is working to revise our policies and procedures to improve retention of evidence and documentation over the procedures performed which ensure and substantiate compliance with regulations.
Finding 2023-002
Finding 2023-002 Procurement and Suspension and Debarment – Significant Deficiency in Internal Control Over Compliance Agency/Pass-through Grantor Denali Commission, Denali Commission passed through Alaska Energy Authority, Department of Energy ALN and Program Name 90.100 – Denali Commission Program 81.087 – Research and Development Cluster Award # 7110096, 7210049, 1750-01, 1686-02, 1693-00, 1605-02, 1546-06, 1561-06, 1654-00, 1724-00, 1511-05, 1423-10, 1517-10, 1545-09, 1711-00, 1721-01, 1834-00, DE-IE0000098, DE-IE0000173 Award Year 90.100 – 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 81.087 – 2019, 2023 Criteria or Specific Requirement The regulations in 2 CFR Part 180 prohibits contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities. Non-federal entities must verify that parties to covered transactions are not suspended or debarred or otherwise excluded from participating in the transaction. Condition Testing of 21 procurements identified 19 exceptions where evidence was not retained to support the required verification of whether a contractor or subrecipient was a suspended or debarred party. Cause The Cooperative’s policies over procurement and issuance of sub-awards were not designed appropriately to retain evidence of suspension and debarment review for all contracts or sub-awards funded with federal awards. Effect or Potential Effect By failing to retain documentation over procedures performed, the Cooperative is unable to substantiate that its procurements were appropriately reviewed to ensure compliance in accordance with regulations in 2 CFR Part 180. Questioned costs None. Context For the Denali Commission Program, we tested a sample of 20 procurements, consisting of 18 purchase orders and 2 task orders, totaling to $721,671. The purchase order population of 36 items totaled to $1,477,400, and the task order population of 3 items totaled to $319,123. BDO did not identify any vendors that the Cooperative entered into covered transactions with, wherein the vendor was disbarred. In addition, BDO identified that the Cooperative appropriately documented that vendors were checked for suspension and debarment before entering into task orders for procurements related to construction projects. However, the Cooperative did not retain sufficient documentation to substantiate that purchase orders for smaller procurements were checked for suspended or debarred vendors before their execution. For the Research and Development Cluster, we tested a sample of 1 procurement, consisting of 1 purchase order, totaling to $45,022. The procurement tested was the entire population of procurements during the year that were not micropurchases. The Cooperative did not retain sufficient documentation to substantiate that purchase order was checked for suspended or debarred vendors before its execution. Identification as a Repeat Finding Not a repeat finding. Views of Responsible Officials Management agrees with the findings and is working to revise our policies and procedures to improve retention of evidence and documentation over the procedures performed which ensure and substantiate compliance with regulations.
Finding 2023-002
Finding 2023-002 Procurement and Suspension and Debarment – Significant Deficiency in Internal Control Over Compliance Agency/Pass-through Grantor Denali Commission, Denali Commission passed through Alaska Energy Authority, Department of Energy ALN and Program Name 90.100 – Denali Commission Program 81.087 – Research and Development Cluster Award # 7110096, 7210049, 1750-01, 1686-02, 1693-00, 1605-02, 1546-06, 1561-06, 1654-00, 1724-00, 1511-05, 1423-10, 1517-10, 1545-09, 1711-00, 1721-01, 1834-00, DE-IE0000098, DE-IE0000173 Award Year 90.100 – 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 81.087 – 2019, 2023 Criteria or Specific Requirement The regulations in 2 CFR Part 180 prohibits contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities. Non-federal entities must verify that parties to covered transactions are not suspended or debarred or otherwise excluded from participating in the transaction. Condition Testing of 21 procurements identified 19 exceptions where evidence was not retained to support the required verification of whether a contractor or subrecipient was a suspended or debarred party. Cause The Cooperative’s policies over procurement and issuance of sub-awards were not designed appropriately to retain evidence of suspension and debarment review for all contracts or sub-awards funded with federal awards. Effect or Potential Effect By failing to retain documentation over procedures performed, the Cooperative is unable to substantiate that its procurements were appropriately reviewed to ensure compliance in accordance with regulations in 2 CFR Part 180. Questioned costs None. Context For the Denali Commission Program, we tested a sample of 20 procurements, consisting of 18 purchase orders and 2 task orders, totaling to $721,671. The purchase order population of 36 items totaled to $1,477,400, and the task order population of 3 items totaled to $319,123. BDO did not identify any vendors that the Cooperative entered into covered transactions with, wherein the vendor was disbarred. In addition, BDO identified that the Cooperative appropriately documented that vendors were checked for suspension and debarment before entering into task orders for procurements related to construction projects. However, the Cooperative did not retain sufficient documentation to substantiate that purchase orders for smaller procurements were checked for suspended or debarred vendors before their execution. For the Research and Development Cluster, we tested a sample of 1 procurement, consisting of 1 purchase order, totaling to $45,022. The procurement tested was the entire population of procurements during the year that were not micropurchases. The Cooperative did not retain sufficient documentation to substantiate that purchase order was checked for suspended or debarred vendors before its execution. Identification as a Repeat Finding Not a repeat finding. Views of Responsible Officials Management agrees with the findings and is working to revise our policies and procedures to improve retention of evidence and documentation over the procedures performed which ensure and substantiate compliance with regulations.
Finding 2023-002
Finding 2023-002 Procurement and Suspension and Debarment – Significant Deficiency in Internal Control Over Compliance Agency/Pass-through Grantor Denali Commission, Denali Commission passed through Alaska Energy Authority, Department of Energy ALN and Program Name 90.100 – Denali Commission Program 81.087 – Research and Development Cluster Award # 7110096, 7210049, 1750-01, 1686-02, 1693-00, 1605-02, 1546-06, 1561-06, 1654-00, 1724-00, 1511-05, 1423-10, 1517-10, 1545-09, 1711-00, 1721-01, 1834-00, DE-IE0000098, DE-IE0000173 Award Year 90.100 – 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 81.087 – 2019, 2023 Criteria or Specific Requirement The regulations in 2 CFR Part 180 prohibits contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities. Non-federal entities must verify that parties to covered transactions are not suspended or debarred or otherwise excluded from participating in the transaction. Condition Testing of 21 procurements identified 19 exceptions where evidence was not retained to support the required verification of whether a contractor or subrecipient was a suspended or debarred party. Cause The Cooperative’s policies over procurement and issuance of sub-awards were not designed appropriately to retain evidence of suspension and debarment review for all contracts or sub-awards funded with federal awards. Effect or Potential Effect By failing to retain documentation over procedures performed, the Cooperative is unable to substantiate that its procurements were appropriately reviewed to ensure compliance in accordance with regulations in 2 CFR Part 180. Questioned costs None. Context For the Denali Commission Program, we tested a sample of 20 procurements, consisting of 18 purchase orders and 2 task orders, totaling to $721,671. The purchase order population of 36 items totaled to $1,477,400, and the task order population of 3 items totaled to $319,123. BDO did not identify any vendors that the Cooperative entered into covered transactions with, wherein the vendor was disbarred. In addition, BDO identified that the Cooperative appropriately documented that vendors were checked for suspension and debarment before entering into task orders for procurements related to construction projects. However, the Cooperative did not retain sufficient documentation to substantiate that purchase orders for smaller procurements were checked for suspended or debarred vendors before their execution. For the Research and Development Cluster, we tested a sample of 1 procurement, consisting of 1 purchase order, totaling to $45,022. The procurement tested was the entire population of procurements during the year that were not micropurchases. The Cooperative did not retain sufficient documentation to substantiate that purchase order was checked for suspended or debarred vendors before its execution. Identification as a Repeat Finding Not a repeat finding. Views of Responsible Officials Management agrees with the findings and is working to revise our policies and procedures to improve retention of evidence and documentation over the procedures performed which ensure and substantiate compliance with regulations.
Finding 2023-002
Finding 2023-002 Procurement and Suspension and Debarment – Significant Deficiency in Internal Control Over Compliance Agency/Pass-through Grantor Denali Commission, Denali Commission passed through Alaska Energy Authority, Department of Energy ALN and Program Name 90.100 – Denali Commission Program 81.087 – Research and Development Cluster Award # 7110096, 7210049, 1750-01, 1686-02, 1693-00, 1605-02, 1546-06, 1561-06, 1654-00, 1724-00, 1511-05, 1423-10, 1517-10, 1545-09, 1711-00, 1721-01, 1834-00, DE-IE0000098, DE-IE0000173 Award Year 90.100 – 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 81.087 – 2019, 2023 Criteria or Specific Requirement The regulations in 2 CFR Part 180 prohibits contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities. Non-federal entities must verify that parties to covered transactions are not suspended or debarred or otherwise excluded from participating in the transaction. Condition Testing of 21 procurements identified 19 exceptions where evidence was not retained to support the required verification of whether a contractor or subrecipient was a suspended or debarred party. Cause The Cooperative’s policies over procurement and issuance of sub-awards were not designed appropriately to retain evidence of suspension and debarment review for all contracts or sub-awards funded with federal awards. Effect or Potential Effect By failing to retain documentation over procedures performed, the Cooperative is unable to substantiate that its procurements were appropriately reviewed to ensure compliance in accordance with regulations in 2 CFR Part 180. Questioned costs None. Context For the Denali Commission Program, we tested a sample of 20 procurements, consisting of 18 purchase orders and 2 task orders, totaling to $721,671. The purchase order population of 36 items totaled to $1,477,400, and the task order population of 3 items totaled to $319,123. BDO did not identify any vendors that the Cooperative entered into covered transactions with, wherein the vendor was disbarred. In addition, BDO identified that the Cooperative appropriately documented that vendors were checked for suspension and debarment before entering into task orders for procurements related to construction projects. However, the Cooperative did not retain sufficient documentation to substantiate that purchase orders for smaller procurements were checked for suspended or debarred vendors before their execution. For the Research and Development Cluster, we tested a sample of 1 procurement, consisting of 1 purchase order, totaling to $45,022. The procurement tested was the entire population of procurements during the year that were not micropurchases. The Cooperative did not retain sufficient documentation to substantiate that purchase order was checked for suspended or debarred vendors before its execution. Identification as a Repeat Finding Not a repeat finding. Views of Responsible Officials Management agrees with the findings and is working to revise our policies and procedures to improve retention of evidence and documentation over the procedures performed which ensure and substantiate compliance with regulations.