Finding 1156753 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Cooperative reported quarterly progress periods incorrectly, misaligning with grant agreement requirements.
  • Impacted Requirements: Quarterly reports must cover the specified periods: Q3 (July-September) and Q4 (October-December).
  • Recommended Follow-Up: Establish a review process to ensure future reports align with grant periods and document any discrepancies transparently.

Finding Text

Finding 2024-002: Identification of the federal program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance over reporting and significant deficiency in internal controls Criteria: Cooperatives must ensure the periods covered in the quarterly reports are consistent with what is required per the grant agreements. Condition: The Cooperative reported its quarterly progress reports with a different period schedule than what was required. Cause: The Cooperative reported June-August information on its Q3 reports and September-November information on its Q4 reports. The grant agreements require Q3 to cover July-September and Q4 to cover October-December. Effect: Improper reporting may impact grantor oversight and delay funding decisions. Questioned Costs: None Recommendations: The Cooperative should ensure that quarterly reports align with the periods specified in the grant agreements to maintain compliance Views of responsible officials: Management concurs with the recommendation. A review process will be established to ensure that financial reports align with the periods specified in the grant agreements whenever possible. In instances where complete information is not available within the required reporting window (due timing of information and required deadlines), management will provide the most reliable and available data at the time of reporting. This will be clearly documented to ensure transparency with granting agencies.

Corrective Action Plan

Management understands that the Cooperative must provide data for the proper periods when filing its quarterly reports. The Controller, Steve Malay, has implemented a review process to ensure that financial reports align with the periods specified in the grant agreements whenever possible. In instances where complete information is not available within the required reporting window (due timing of information and required deadlines), management will provide the most reliable and available data at the time of reporting. This will be clearly documented to ensure transparency with granting agencies.

Categories

Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 1156738 2024-001
    Material Weakness Repeat
  • 1156739 2024-002
    Material Weakness Repeat
  • 1156740 2024-001
    Material Weakness Repeat
  • 1156741 2024-002
    Material Weakness Repeat
  • 1156742 2024-001
    Material Weakness Repeat
  • 1156743 2024-002
    Material Weakness Repeat
  • 1156744 2024-001
    Material Weakness Repeat
  • 1156745 2024-002
    Material Weakness Repeat
  • 1156746 2024-001
    Material Weakness Repeat
  • 1156747 2024-002
    Material Weakness Repeat
  • 1156748 2024-001
    Material Weakness Repeat
  • 1156749 2024-002
    Material Weakness Repeat
  • 1156750 2024-001
    Material Weakness Repeat
  • 1156751 2024-002
    Material Weakness Repeat
  • 1156752 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $666,805
10.752 Rural Econnectivity Pilot Program $150,551