Audit 7697

Finding 2023-001 – major program FAL 21.027 Coronavirus State and Local Fiscal Recovery Funds . Criteria: Only eligible costs should be submitted for reimbursement.Condition: Certain amounts to be submitted for reimbursement did not agree to supporting documentation. Cause: In some instances, the total amount of an invoice will not be reimbursable. When this occurs, care is given by Cooperative personnel to separate the amounts included in the invoice total between reimbursable and non-reimbursable costs. In some instances, the total invoice amounts were input for reimbursement rather than only the reimbursable amounts. Effect: Some costs to be submitted for reimbursement included non-reimbursable amounts. Recommendation: We suggest review be made of all amounts input for reimbursement by someone independent of the preparation process. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 41.

Finding 2023-002 – major program FAL 21.027 Coronavirus State and Local Fiscal Recovery Funds. Criteria: Section D.20 of the grant contract between the State of Tennessee and Meriwether Lewis Electric Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, that grantees must have documented procurement procedures. Condition: The grantee does not have documented procurement procedures. Cause: The Cooperative does not maintain written procurement procedures, and procurement of project costs was completed before the grant process began. Effect: Certain costs were submitted for reimbursement without following documented procurement procedures. Recommendation: Documented procurement procedures should be developed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 42.

Finding 2023-003 – major program FAL 21.027Coronavirus State and Local Fiscal Recovery Funds Criteria: Section D.20 of the grant contract between the State of Tennessee and Meriwether Lewis Electric Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, the methods of procurement to be followed. Condition: The Cooperative did not utilize the procurement methods provided under the regulations. Cause: The Cooperative’s procurement procedures do not provide for the formal procurement methods required by the regulations, and procurement of project costs was completed before the grant process began. Effect: Certain costs were submitted for reimbursement without following the formal procurement methods required by the regulations. Recommendation: Procurement procedures related to costs reimbursable under federal grants should be developed in accordance with the regulations and followed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 43.

Finding 2023-001 – major program FAL 21.027 Coronavirus State and Local Fiscal Recovery Funds . Criteria: Only eligible costs should be submitted for reimbursement.Condition: Certain amounts to be submitted for reimbursement did not agree to supporting documentation. Cause: In some instances, the total amount of an invoice will not be reimbursable. When this occurs, care is given by Cooperative personnel to separate the amounts included in the invoice total between reimbursable and non-reimbursable costs. In some instances, the total invoice amounts were input for reimbursement rather than only the reimbursable amounts. Effect: Some costs to be submitted for reimbursement included non-reimbursable amounts. Recommendation: We suggest review be made of all amounts input for reimbursement by someone independent of the preparation process. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 41.

Finding 2023-002 – major program FAL 21.027 Coronavirus State and Local Fiscal Recovery Funds. Criteria: Section D.20 of the grant contract between the State of Tennessee and Meriwether Lewis Electric Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, that grantees must have documented procurement procedures. Condition: The grantee does not have documented procurement procedures. Cause: The Cooperative does not maintain written procurement procedures, and procurement of project costs was completed before the grant process began. Effect: Certain costs were submitted for reimbursement without following documented procurement procedures. Recommendation: Documented procurement procedures should be developed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 42.

Finding 2023-003 – major program FAL 21.027Coronavirus State and Local Fiscal Recovery Funds Criteria: Section D.20 of the grant contract between the State of Tennessee and Meriwether Lewis Electric Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, the methods of procurement to be followed. Condition: The Cooperative did not utilize the procurement methods provided under the regulations. Cause: The Cooperative’s procurement procedures do not provide for the formal procurement methods required by the regulations, and procurement of project costs was completed before the grant process began. Effect: Certain costs were submitted for reimbursement without following the formal procurement methods required by the regulations. Recommendation: Procurement procedures related to costs reimbursable under federal grants should be developed in accordance with the regulations and followed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 43.