FAC Explorer

Audit 329042

FY End
2024-06-30
Total Expended
$2.32M
Findings
4
Programs
2
Organization: Volunteer Energy Cooperative (TN)
Year: 2024 Accepted: 2024-11-20
Auditor: Winnett Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
508416 2024-001 - - I
508417 2024-002 - - I
1084858 2024-001 - - I
1084859 2024-002 - - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.66M Yes 2
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $660,298 - 0

Contacts

Name Title Type
CFFCDKP4T965 Mark Verstynen Auditee
4233347010 Patrick R Lile Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: The Schedule of Expenditures of Federal Awards summarizes the expenditures of Volunteer Energy Cooperative under programs of the federal government for the year ended June 30, 2024. The schedule is presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Volunteer Energy Cooperative did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards summarizes the expenditures of Volunteer Energy Cooperative under programs of the federal government for the year ended June 30, 2024. The schedule is presented using the accrual basis of accounting.
Title: Note 2 Accounting Policies: The Schedule of Expenditures of Federal Awards summarizes the expenditures of Volunteer Energy Cooperative under programs of the federal government for the year ended June 30, 2024. The schedule is presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Volunteer Energy Cooperative did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Indirect Cost Rate: Volunteer Energy Cooperative did not elect to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Criteria: Section D.20 of the grant contract between the State of Tennessee and Volunteer Energy Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.326 when procuring property and services. These regulations require, in part, that grantees must have documented procurement procedures consistent with 2 C.F.R. Sections 200.317 - 200.327. Cause, Condition and Effect: While the Cooperative does have written procurement procedures, they do not include all of the required procurement procedures as defined within 2 C.F.R. Sections 200.317-200.327. Specifically, procedures addressing the publication of bidding notices and sealed bidding are not included. Recommendation: Documented procurement procedures for federal awards should be updated to be consistent with the requirements of 2 C.F.R. Sections 200.317-200.327. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 63.
Finding 2024-002
Criteria: Section D.20 of the grant contract between the State of Tennessee and Volunteer Energy Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, the methods of procurement to be followed. Cause, Condition and Effect: The Cooperative’s procurement procedures do not provide for the formal procurement methods required by the regulations. The result is that certain costs were submitted for reimbursement without following the formal procurement methods required by the regulations which generally provide for public notice of requests for proposals. Recommendation: Procurement procedures related to costs reimbursable under federal grants should be developed in accordance with the regulations and followed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 63.
Finding 2024-001
Criteria: Section D.20 of the grant contract between the State of Tennessee and Volunteer Energy Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.326 when procuring property and services. These regulations require, in part, that grantees must have documented procurement procedures consistent with 2 C.F.R. Sections 200.317 - 200.327. Cause, Condition and Effect: While the Cooperative does have written procurement procedures, they do not include all of the required procurement procedures as defined within 2 C.F.R. Sections 200.317-200.327. Specifically, procedures addressing the publication of bidding notices and sealed bidding are not included. Recommendation: Documented procurement procedures for federal awards should be updated to be consistent with the requirements of 2 C.F.R. Sections 200.317-200.327. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 63.
Finding 2024-002
Criteria: Section D.20 of the grant contract between the State of Tennessee and Volunteer Energy Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, the methods of procurement to be followed. Cause, Condition and Effect: The Cooperative’s procurement procedures do not provide for the formal procurement methods required by the regulations. The result is that certain costs were submitted for reimbursement without following the formal procurement methods required by the regulations which generally provide for public notice of requests for proposals. Recommendation: Procurement procedures related to costs reimbursable under federal grants should be developed in accordance with the regulations and followed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 63.