FAC Explorer

Audit 322624

FY End
2023-12-31
Total Expended
$6.67M
Findings
6
Programs
2
Organization: Nushagak Electric and Telephone Cooperative, Inc. (AK)
Year: 2023 Accepted: 2024-09-30
Auditor: Aldrich Cpas+advisors LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499780 2023-002 Significant Deficiency - I
499781 2023-003 Significant Deficiency - I
499782 2023-004 Significant Deficiency - L
1076222 2023-002 Significant Deficiency - I
1076223 2023-003 Significant Deficiency - I
1076224 2023-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
11.029 Tribal Broadband Connectivity Program $6.17M Yes 3
90.100 Denali Commission Program $500,000 - 0

Contacts

Name Title Type
VYMNXQLYGQH9 Will Chaney Auditee
9078425251 Amy Fenerty Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditure reported on the schedule are presented on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Nushagak Electric and Telephone Cooperative, Inc. elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nushagak Electric and Telephone Cooperative, Inc. allocates indirect costs as allowed by each grant. The accompanying schedule of federal awards (the Schedule) includes the federal award activity of Nushagak Electric and Telephone Cooperative, Inc. (the Cooperative) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 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 Nushagak Electric and Telephone Cooperative, Inc., it is not intended to and does not present the financial position, changes in equity, or cash flows of Nushagak Electric and Telephone Cooperative, Inc.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditure reported on the schedule are presented on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Nushagak Electric and Telephone Cooperative, Inc. elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nushagak Electric and Telephone Cooperative, Inc. allocates indirect costs as allowed by each grant. Expenditures reported on the Schedule are presented on the accrual basis of accounting.
Title: Indirect Cost Rate Accounting Policies: Expenditure reported on the schedule are presented on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Nushagak Electric and Telephone Cooperative, Inc. elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nushagak Electric and Telephone Cooperative, Inc. allocates indirect costs as allowed by each grant. Nushagak Electric and Telephone Cooperative, Inc. elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nushagak Electric and Telephone Cooperative, Inc. allocates indirect costs as allowed by each grant.

Finding Details

Finding 2023-002
Identification of the federal program: 11.029 Tribal Broadband Grant Program Criteria: The grant agreement requires the grantee to follow competitive purchasing procedures that follow 2 CFR Part 200.317-326 for micro-purchase, small purchases, and formal procurements. Condition: The Cooperative was unable to provide documentation of the source selection methods used for all contracts, equipment, and material transactions greater than $10,000, and the Cooperative was unable to provide documentation of the procurement process used for all contracts, equipment, and material transactions greater than $250,000. Cause: The Cooperative did not maintain documentation of source selection methods or of the justification for noncompetitive procurements or contracts and did not have internal controls in place to ensure all required purchasing methods were followed. Effect: The Cooperative may be out of compliance with the procurement requirements of the grant. Competitive purchasing not being followed might result in higher costs incurred under the grant. Questioned Costs: None Recommendations: The Cooperative should implement processes and procedures to ensure competitive purchasing procedures are followed and all necessary documentation is maintained. Views of Responsible Officials: The Cooperative agrees with the finding above and will develop processes and procedures to ensure that, going forward, all pertinent documents and agreements are retained.
Finding 2023-003
Identification of the federal program: 11.029 Tribal Broadband Grant Program Criteria: Processes and procedures should be in place to ensure when the Cooperative enters into a transaction with another entity for the purchase of goods or services, that the Cooperative is checking the suspended and debarred list and maintaining documentation that this verification occurred. Condition: The Cooperative did not maintain documentation supporting the assertion the suspended and debarred list was checked prior to awarding a contract for services. Cause: Internal control processes and procedures were not in place to ensure the suspended and debarred list was checked prior to awarding a contract. Effect: The Cooperative could contract with an entity for goods and services which is barred from performing work with state or federal funds. Questioned Costs: None Recommendations: The Cooperative should implement processes, procedures, and controls to ensure the suspended and debarred list is checked prior to awarding a contract and should maintain documentation this check occurred. Views of Responsible Officials: The Cooperative agrees with the finding above and will develop processes and procedures to ensure the suspended and debarred list is checked prior to awarding a contract and ensure documentation is maintained.
Finding 2023-004
Identification of the federal program: 11.029 Tribal Broadband Grant Program Criteria: Processes and procedures should be in place to ensure annual reports are filed and are filed timely. Condition: The Cooperative did not file the annual report with the National Telecommunications and Information Administration and the Assistant Secretary of Commerce for Communications and Information as outlined in the grant agreement. Cause: Internal control processes and procedures were not in place to ensure required reports were filed. Effect: The Cooperative's progress on the project could be behind schedule or in conflict with the completion schedule outlined in the grant agreement. Questioned Costs: None Recommendations: The Cooperative should implement processes and procedures to ensure all required grant reports are filed and are filed timely. Views of Responsible Officials: The Cooperative agrees with the finding above and will develop processes and procedures to ensure all necessary reports are filed timely.
Finding 2023-002
Identification of the federal program: 11.029 Tribal Broadband Grant Program Criteria: The grant agreement requires the grantee to follow competitive purchasing procedures that follow 2 CFR Part 200.317-326 for micro-purchase, small purchases, and formal procurements. Condition: The Cooperative was unable to provide documentation of the source selection methods used for all contracts, equipment, and material transactions greater than $10,000, and the Cooperative was unable to provide documentation of the procurement process used for all contracts, equipment, and material transactions greater than $250,000. Cause: The Cooperative did not maintain documentation of source selection methods or of the justification for noncompetitive procurements or contracts and did not have internal controls in place to ensure all required purchasing methods were followed. Effect: The Cooperative may be out of compliance with the procurement requirements of the grant. Competitive purchasing not being followed might result in higher costs incurred under the grant. Questioned Costs: None Recommendations: The Cooperative should implement processes and procedures to ensure competitive purchasing procedures are followed and all necessary documentation is maintained. Views of Responsible Officials: The Cooperative agrees with the finding above and will develop processes and procedures to ensure that, going forward, all pertinent documents and agreements are retained.
Finding 2023-003
Identification of the federal program: 11.029 Tribal Broadband Grant Program Criteria: Processes and procedures should be in place to ensure when the Cooperative enters into a transaction with another entity for the purchase of goods or services, that the Cooperative is checking the suspended and debarred list and maintaining documentation that this verification occurred. Condition: The Cooperative did not maintain documentation supporting the assertion the suspended and debarred list was checked prior to awarding a contract for services. Cause: Internal control processes and procedures were not in place to ensure the suspended and debarred list was checked prior to awarding a contract. Effect: The Cooperative could contract with an entity for goods and services which is barred from performing work with state or federal funds. Questioned Costs: None Recommendations: The Cooperative should implement processes, procedures, and controls to ensure the suspended and debarred list is checked prior to awarding a contract and should maintain documentation this check occurred. Views of Responsible Officials: The Cooperative agrees with the finding above and will develop processes and procedures to ensure the suspended and debarred list is checked prior to awarding a contract and ensure documentation is maintained.
Finding 2023-004
Identification of the federal program: 11.029 Tribal Broadband Grant Program Criteria: Processes and procedures should be in place to ensure annual reports are filed and are filed timely. Condition: The Cooperative did not file the annual report with the National Telecommunications and Information Administration and the Assistant Secretary of Commerce for Communications and Information as outlined in the grant agreement. Cause: Internal control processes and procedures were not in place to ensure required reports were filed. Effect: The Cooperative's progress on the project could be behind schedule or in conflict with the completion schedule outlined in the grant agreement. Questioned Costs: None Recommendations: The Cooperative should implement processes and procedures to ensure all required grant reports are filed and are filed timely. Views of Responsible Officials: The Cooperative agrees with the finding above and will develop processes and procedures to ensure all necessary reports are filed timely.