Finding 1176608 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-05

AI Summary

  • Core Issue: The Cooperative lacks oversight and documentation for compliance with federal funding requirements.
  • Impacted Requirements: Uniform Guidance mandates effective internal controls to ensure compliance with federal statutes and award terms.
  • Recommended Follow-Up: Develop and implement procedures for compliance monitoring, including defined responsibilities and documentation practices.

Finding Text

#2025-002 Finding: Internal Controls over Compliance Federal Program Affected: Cybersecurity, Energy Security & Emergency Response (CESER) ALN 81.008 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: The Cooperative has processes to comply with various federal funding requirements; however, no one is overseeing or documenting the review of overall compliance. No noncompliance was identified during the audit process. Criteria and Effect: Uniform Guidance requires non-federal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance of compliance with applicable federal statutes, regulations, and the terms and conditions of the federal award. Lack of internal control procedures can result in noncompliance with federal grant requirements. Repeat Finding from Prior Year: No Recommendation: The Cooperative should develop and implement procedures for monitoring overall compliance, including clearly defined responsibilities, documentation requirements, and review frequencies. Response/Corrective Action Plan: The Cooperative agrees with the above Finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2025-002: Internal Controls over Compliance Responsible Individuals: Mark Miller, Accounting Manager Corrective Action Plan: Management is currently implementing review procedures and proper oversight of compliance. Anticipated Completion Date: 2026

Categories

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
81.008 CYBERSECURITY, ENERGY SECURITY & EMERGENCY RESPONSE (CESER) $1.28M