FAC Explorer

Audit 364186

FY End
2024-12-31
Total Expended
$2.15M
Findings
6
Programs
1
Organization: Corn Belt Power Cooperative (IA)
Year: 2024 Accepted: 2025-08-13
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573441 2024-001 Significant Deficiency - P
573442 2024-002 Material Weakness - L
573443 2024-003 Material Weakness - C
1149883 2024-001 Significant Deficiency - P
1149884 2024-002 Material Weakness - L
1149885 2024-003 Material Weakness - C

Programs

ALN Program Spent Major Findings
97.039 Hazard Mitigation Grant $2.15M Yes 3

Contacts

Name Title Type
TBL7BQ3BA2Y5 Faith Warden Auditee
5153327713 Stacey Nelson 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. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Cooperative does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Corn Belt Power Cooperative (the Cooperative) under programs of the federal government for the year ended December 31, 2024. The information 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 the Cooperative, it is not intended to and does not present the balance sheet, statements of revenue and expenses, comprehensive income, membership capital, or cash flows of the Cooperative.

Finding Details

Finding 2024-001
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule. Condition: The Cooperative does not have an internal control system designed to provide for a complete and accurate schedule of federal expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule and accompanying notes to the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Cooperative meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Cooperative would not be able to draft a complete and accurate schedule. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding form Prior Year: No Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Cooperative is aware of this condition for financial reporting requirements relating to the Cooperative’s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-002
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In two of two quarterly reports tested, we noted the Cooperative improperly reported the federal, state, and local shares incurred during the reporting period. Cause: The Cooperative’s independent review process over the quarterly performance reports did not identify the improperly excluded expenditures on the report. Effect: Lack of compliance with designed internal controls over reporting could result in the Cooperative reporting incorrect or incomplete information. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 2 out of 4 quarterly performance reports. Repeat Finding from Prior Year: No Recommendation: We recommend the Cooperative review internal control procedures over reporting to ensure reported amounts agree to supporting documentation including a reconciliation to the general ledger. In addition, we suggest the Cooperative implement a formal approval process and retain documentation to support evidence of the review. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-003
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Cash Management Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In two of two draw requests tested, we noted that the Cooperative did not have formal documentation to support the review of the draw prior to submission for reimbursement. Cause: The Cooperative did not have any formally documented review and approval over the draw requests. Effect: Lack of properly designed controls could result in a reasonable possibility the Cooperative would not be able to demonstrate compliance with the federal program. Questioned Costs: None reported. Context/Sampling: There were two draw requests made during the year and both were tested. Repeat Finding from Prior Year: No Recommendation: We recommend the Cooperative review internal control procedures over cash management to implement a formal review and approval process over draw requests prior to submission. The procedures should incorporate steps to retain documentation to support evidence of the review. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-001
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule. Condition: The Cooperative does not have an internal control system designed to provide for a complete and accurate schedule of federal expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule and accompanying notes to the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Cooperative meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Cooperative would not be able to draft a complete and accurate schedule. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding form Prior Year: No Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Cooperative is aware of this condition for financial reporting requirements relating to the Cooperative’s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-002
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In two of two quarterly reports tested, we noted the Cooperative improperly reported the federal, state, and local shares incurred during the reporting period. Cause: The Cooperative’s independent review process over the quarterly performance reports did not identify the improperly excluded expenditures on the report. Effect: Lack of compliance with designed internal controls over reporting could result in the Cooperative reporting incorrect or incomplete information. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 2 out of 4 quarterly performance reports. Repeat Finding from Prior Year: No Recommendation: We recommend the Cooperative review internal control procedures over reporting to ensure reported amounts agree to supporting documentation including a reconciliation to the general ledger. In addition, we suggest the Cooperative implement a formal approval process and retain documentation to support evidence of the review. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-003
Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Cash Management Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In two of two draw requests tested, we noted that the Cooperative did not have formal documentation to support the review of the draw prior to submission for reimbursement. Cause: The Cooperative did not have any formally documented review and approval over the draw requests. Effect: Lack of properly designed controls could result in a reasonable possibility the Cooperative would not be able to demonstrate compliance with the federal program. Questioned Costs: None reported. Context/Sampling: There were two draw requests made during the year and both were tested. Repeat Finding from Prior Year: No Recommendation: We recommend the Cooperative review internal control procedures over cash management to implement a formal review and approval process over draw requests prior to submission. The procedures should incorporate steps to retain documentation to support evidence of the review. Views of Responsible Officials: Management agrees with the finding.