FAC Explorer

Audit 53569

FY End
2022-12-31
Total Expended
$1.35M
Findings
2
Programs
1
Organization: Kootenai Electric Cooperative, Inc. (ID)
Year: 2022 Accepted: 2023-03-22
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48474 2022-001 Significant Deficiency - ABGH
624916 2022-001 Significant Deficiency - ABGH

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.35M Yes 1

Contacts

Name Title Type
UPJYFNNACSB5 Reed Christensen Auditee
2082923262 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 has not elected to use the 10% de minimis cost rate. The schedule of expenditures of federal awards (the schedule) includes the federal award activity of Kootenai Electric Cooperative, Inc. (the Cooperative) under programs of the federal government for the year ended December 31, 2022. 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 financial position, changes in members equity, and cash flows of the Cooperative.
Title: Disaster Grants Public Assistance 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 has not elected to use the 10% de minimis cost rate. Per the OMB Compliance Supplement, nonfederal entities must record expenditures on the schedule of expenditures of federal awards when FEMA has approved the entitys project worksheet. The expenditures included in the schedule were incurred in prior fiscal years. These expenditures were approved for payment by the federal agency in 2022 and therefore are included in the schedule when approved.

Finding Details

Finding 2022-001
2022-001 Department of Homeland Security, State of Idaho Office of Emergency Management, 97.036, FEMA-DR-4589-ID Disaster Grants ? Public Assistance Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Matching, and Period of Performance Significant Deficiency 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: Administrative labor costs were claimed for reimbursement and match that fell outside the period of performance of the federal award in two instances. In addition, we noted one instance in which the Cooperative submitted a material cost for reimbursement and match that was not used in the project. Cause: The labor costs related to the day before the start of the period of performance. A transposition error of one additional pole was made on the reimbursement spreadsheet. Effect: The Cooperative?s control process and procedures did not detect or correct the errors. Concerning the costs of administrative labor, the Cooperative submitted $352 for reimbursement and 10% match of $39 for five hours of labor. Concerning the costs of materials, the Cooperative submitted $525 for reimbursement and 10% match of $58 for one additional pole. Questioned Costs: No questioned costs over $25,000. Context/Sampling: Nonstatistical sampling was used. Sample size was 60 transactions which accounted for $694,499 out of $1,494,894 of federal program expenditures of which $1,345,404 was submitted for reimbursement and $149,490 was considered the 10% matching portion. Repeat Finding form Prior Year: No Recommendation: We recommend the Cooperative continue to review the process over the tracking of labor costs and materials to ensure accuracy of costs submitted for reimbursement. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-001
2022-001 Department of Homeland Security, State of Idaho Office of Emergency Management, 97.036, FEMA-DR-4589-ID Disaster Grants ? Public Assistance Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Matching, and Period of Performance Significant Deficiency 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: Administrative labor costs were claimed for reimbursement and match that fell outside the period of performance of the federal award in two instances. In addition, we noted one instance in which the Cooperative submitted a material cost for reimbursement and match that was not used in the project. Cause: The labor costs related to the day before the start of the period of performance. A transposition error of one additional pole was made on the reimbursement spreadsheet. Effect: The Cooperative?s control process and procedures did not detect or correct the errors. Concerning the costs of administrative labor, the Cooperative submitted $352 for reimbursement and 10% match of $39 for five hours of labor. Concerning the costs of materials, the Cooperative submitted $525 for reimbursement and 10% match of $58 for one additional pole. Questioned Costs: No questioned costs over $25,000. Context/Sampling: Nonstatistical sampling was used. Sample size was 60 transactions which accounted for $694,499 out of $1,494,894 of federal program expenditures of which $1,345,404 was submitted for reimbursement and $149,490 was considered the 10% matching portion. Repeat Finding form Prior Year: No Recommendation: We recommend the Cooperative continue to review the process over the tracking of labor costs and materials to ensure accuracy of costs submitted for reimbursement. Views of Responsible Officials: Management agrees with the finding.