Audit 367301

FY End
2025-04-30
Total Expended
$3.27M
Findings
4
Programs
1
Year: 2025 Accepted: 2025-09-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1154959 2025-001 Material Weakness Yes P
1154960 2025-002 Material Weakness Yes P
1154961 2025-003 Material Weakness Yes P
1154962 2025-004 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
21.029 Coronavirus Capital Projects Fund $3.27M Yes 4

Contacts

Name Title Type
WX92G4ZZ2WN1 Alexandria Tompkins Auditee
7654736668 Earl Ridlen Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of the Cooperative under programs of the federal government for the year ended April 30, 2025. Expenditures reported on the Schedule are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used, in the preparation of the financial statements. 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, changes in members' equity or cash flows of the Cooperative
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Cooperative's financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
The Cooperative has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance

Finding Details

The organization has a written policy that governs the process for the procurement of materials and services but did not have proper monitoring procedures to prevent those policies from being overridden by management. For the year ended April 30, 2025, Miami-Cass REMC and Subsidiary has failed to properly adhere to the policy regarding procurement of materials and services consistent with control objectives.
For the year ended April 30, 2025, audit adjustments were proposed and adjusted for prepaid expenses and deferred revenue. These accounts were not properly monitored and adjusted during the audit period.
More than one employee has the ability to complete multiple parts of tasks. For the year ended April 30, 2025, Miami-Cass REMC and Subsidiary has failed to appropriately segregate duties in certain accounting areas consistent with control objectives.
Certain costs were allocated to grant eligible area based on construction to be performed in those areas. The amounts that were incorrectly submitted more than once was due to human error. Amounts reimbursed included duplicated costs resulting in ineligible costs being requested and received in the amount of $489,751.87.