Finding Text
Identification of the federal program: 11.029 – Tribal Broadband Grant Program Criteria: Processes and procedures should be in place to ensure costs charged to the grant are only for activities that are allowed. Condition: The Cooperative identified costs that had been submitted and reimbursed under the program that were for electrical infrastructure development which is not an allowable activity. Cause: Costs charged on the vendor invoice were not separated between allowable activity, broadband infrastructure development, and unallowable activity, electrical infrastructure development. Effect: The Cooperative received $1,779,669 of reimbursement for unallowable activities. The granting agency, the National Telecommunications and Information Administration, has been notified and a credit for the amount has been applied against the Cooperative’s May 2025 drawdown to correct the error. Known Questioned Costs: $1,779,669 Recommendations: When projects include both allowable and unallowable activities, the Cooperative should instruct the vendor to segregate accounting related to the different activities in their billings. Cooperative personnel and consultants involved in project management, especially those involved in approving expenditures, should receive training on Uniform Guidance requirements. Views of Responsible Officials: The Cooperative agrees with the finding above and has already taken corrective action. All project expenditures for the term of the grant have been reviewed for any additional unallowable charges. Training meetings have been held with contractors and subcontractors to ensure clear distinction and segregated accounting between grant and non-grant projects in project billings. The Cooperative will ensure that all personnel involved in grant administration, including project managers and finance staff, are required to attend training on federal grant compliance.