FAC Explorer

Audit 7499

FY End
2021-12-31
Total Expended
$94.02M
Findings
2
Programs
3
Organization: Coast Electric Power Association (MS)
Year: 2021 Accepted: 2023-12-19
Auditor: Jackson Thornton

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
5621 2021-001 Material Weakness - L
582063 2021-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.850 Rural Electrification Loans and Loan Guarantees $86.98M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $6.74M Yes 1
10.854 Rural Economic Development Loans and Grants $300,000 Yes 0

Contacts

Name Title Type
RH39MK9L1MC8 Shannon Crowder Auditee
2283637284 Woody Trimble 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. The information in this schedule is presented in accordance with 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). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements De Minimis Rate Used: N Rate Explanation: The entity used actual costs The accompanying schedule of expenditures of federal awards includes the federal grant activity of Coast Electric Power Association and Subsidiary (the Association) under programs of the federal government for the year ended December 31, 2021. Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with 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). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: Reporting Entity Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with 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). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements De Minimis Rate Used: N Rate Explanation: The entity used actual costs The Association’s reporting entity is fully described in Note 1 to the consolidated financial statements.
Title: Continuing Compliance Requirements Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with 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). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements De Minimis Rate Used: N Rate Explanation: The entity used actual costs The Association has unpaid RUS loans with continuing compliance requirements in the amount of $83,843,505 at December 31, 2021.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with 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). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements De Minimis Rate Used: N Rate Explanation: The entity used actual costs The Association has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Title: Subrecipients Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with 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). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements De Minimis Rate Used: N Rate Explanation: The entity used actual costs There were no awards passed through to subrecipients.
Title: Recognition of Federal Expenditures Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. The information in this schedule is presented in accordance with 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). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the consolidated financial statements De Minimis Rate Used: N Rate Explanation: The entity used actual costs The Association incurred $6,744,766 of FEMA related expenditures in fiscal year 2020. In accordance with FEMA’s Public Assistance Program guidelines, the Association recorded the eligible expenditures in its fiscal year 2021 schedule of expenditures of federal awards when its project worksheet was approved by FEMA.

Finding Details

Finding 2021-001
Condition - The Association’s internal controls were not adequate to ensure timely preparation of the Schedule of Expenditures of Federal Awards (SEFA) and timely reporting under the Uniform Guidance. Criteria - The Association is required to timely prepare its SEFA and engage an independent auditor to report under the Uniform Guidance. Cause - The Association’s internal controls over the identification of compliance requirements, including timely preparation of the SEFA, were not adequate. Effect - The Association did not timely complete its SEFA resulting in untimely reporting in accordance with the Uniform Guidance. Recommendation - The Association should implement procedures to ensure timely preparation of its SEFA and identification of compliance requirements under the Uniform Guidance. Views of Responsible Officials - The Association agrees with this finding and has implemented the recommended procedures.
Finding 2021-001
Condition - The Association’s internal controls were not adequate to ensure timely preparation of the Schedule of Expenditures of Federal Awards (SEFA) and timely reporting under the Uniform Guidance. Criteria - The Association is required to timely prepare its SEFA and engage an independent auditor to report under the Uniform Guidance. Cause - The Association’s internal controls over the identification of compliance requirements, including timely preparation of the SEFA, were not adequate. Effect - The Association did not timely complete its SEFA resulting in untimely reporting in accordance with the Uniform Guidance. Recommendation - The Association should implement procedures to ensure timely preparation of its SEFA and identification of compliance requirements under the Uniform Guidance. Views of Responsible Officials - The Association agrees with this finding and has implemented the recommended procedures.