FAC Explorer

Audit 408974

FY End
2025-12-31
Total Expended
$1.78M
Findings
1
Programs
1
Organization: Cass County Electric Cooperative (ND)
Year: 2025 Accepted: 2026-08-12
Auditor: EIDE BAILLY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1226336 2025-001 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.78M Yes 1

Contacts

Name Title Type
QZGYW23E8MK9 Andy Auditee
7013564409 Derek Flanagan Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Cass County Electric Cooperative Inc. (“the Cooperative”) under programs of the federal government for the year ended December 31, 2025. 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 sheets, statements of operations, comprehensive margin, changes in equities, and cash flows of the Cooperative.
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.
The Cooperative has not elected to use the de minimus cost rate of up to 15 percent.
Per the OMB Compliance supplement, nonfederal entities must record expenditures on the schedule of expenditures of federal awards when FEMA has approved the entity’s project. These expenditures were incurred in fiscal year 2023, 2024 and 2025 but approved for payment by the federal agency in 2025 and therefore are included in the schedule when approved.

Finding Details

Finding 2025-001
Department of Homeland Security and Emergency Management North Dakota Department of Emergency Services 4760DR-ND-749691, 2025 Federal Financial Assistance Listing 97.036 Disaster Grant – Public Assistance Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including material inventory transactions, is reviewed and maintained. Condition – In our testing of allowable costs and activities, we noted instances where materials inventory expenses were submitted for federal reimbursement at a cost per unit that did not agree to the replacement cost. Cause – Procedures are not in place to adequately identify improper replacement costs applied to material inventory transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A nonstatistical sample of 63 transactions out of a population greater than 250 total transactions were selected for testing, which accounted for $474,885 of $1,775,771 of federal program expenditures. Repeat Finding from Prior Years – Yes, 2024-001 Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including material inventory transactions, should be performed before amounts are claimed for reimbursement. Views of Responsible Officials – There is no disagreement with the audit finding.