Finding 1174999 (2024-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-02-23

Audit: 388636

Organization: Central Alabama Electric Cooperative, Inc. (AL)

Auditor: GRUENLOH MATZ & ASSOCIATES CORP

AI Summary

Answer: Missing documentation for direct material charge outs and charge backs raises concerns about accuracy.
Trend: The known questioned cost is $19,577, with a projected likely cost of $62,170, indicating potential issues in financial reporting.
List: Follow up by gathering all necessary documentation and reviewing processes to ensure compliance and accuracy.

Finding Text

Criteria and condition: The documentation for direct material charge outs and charge backs could not be provided for all test selections. The known questioned cost for direct material is $19,577; the projected likely questioned cost is $62,170.

Corrective Action Plan

Management does not believe that the finding warrants a corrective plan, as it was not the result of noncompliance with established procedures. The Cooperative believes that the volume of contractor work, material availability constraints, and the transfer of related documentation collectively contributed to the error.

Other Findings in this Audit

1174998 2024-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
21.029	CORONAVIRUS CAPITAL PROJECTS FUND	$618,813