Finding 1084859 (2024-002)

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Requirement
I
Questioned Costs
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Year
2024
Accepted
2024-11-20
Audit: 329042
Organization: Volunteer Energy Cooperative (TN)

AI Summary

  • Core Issue: Volunteer Energy Cooperative did not follow required procurement methods for costs submitted for reimbursement.
  • Impacted Requirements: The Cooperative failed to comply with 2 C.F.R. Sections 200.317 - 200.236, which mandate formal procurement processes.
  • Recommended Follow-Up: Develop and implement procurement procedures that align with federal regulations for reimbursable costs.

Finding Text

Criteria: Section D.20 of the grant contract between the State of Tennessee and Volunteer Energy 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. Cause, Condition and Effect: The Cooperative’s procurement procedures do not provide for the formal procurement methods required by the regulations. The result is that certain costs were submitted for reimbursement without following the formal procurement methods required by the regulations which generally provide for public notice of requests for proposals. 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 63.

Categories

Procurement, Suspension & Debarment Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.66M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $660,298