Finding 1210763 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-29

AI Summary

  • Core Issue: The Electric Power Board submitted its Uniform Guidance audit report late, missing the March 31, 2026 deadline.
  • Impacted Requirements: This delay violates Title 2 of the CFR, which mandates report submission within nine months post-audit period.
  • Recommended Follow-Up: Implement controls to ensure future audits are completed and submitted on time.

Finding Text

2025-002 – Late Submission of Uniform Guidance Report Cluster: Not applicable Sponsoring Agency: Federal Emergency Management Agency (FEMA) Award Names: All awards on the Schedule of Expenditures of Federal Awards (SEFA) Award Numbers: All awards on the SEFA Assistance Listing Titles: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing Numbers: 97.036 Award Year: All awards on the SEFA Pass-through entity: Not applicable Criteria Title 2 of the Code of Federal Regulations (CFR), Part 200, Section 512 , Report Submission, requires the audit to be completed and submitted within nine months after the end of the audit period. Condition The Electric Power Board’s Uniform Guidance audit report was due to be submitted to the Federal Audit Clearinghouse by March 31, 2026. Given the report was not filed until April 2026, the report is considered late. Cause Additional time was needed to complete the audit procedures as there was a delay in the issuance of the 2025 Compliance Supplement, and the Electric Power Board was impacted by Winter Storm Fern. Effect Not receiving the Uniform Guidance report in a timely manner could impact the oversight and monitoring procedures performed by the federal government and other constituents. Questioned Costs None noted. Recommendation We recommend the Electric Power Board ensure controls are in place to allow for subsequent audit to be completed timely.

Corrective Action Plan

2025-002 – Late Submission of Uniform Guidance Report Cluster: Not applicable Sponsoring Agency: Tennessee Emergency Management Agency Award Name: All awards on the SEFA Award Number: All awards on the SEFA Assistance Listing Title: All awards on the SEFA Assistance Listing Number: All awards on the SEFA Award Year: All awards on the SEFA Pass-through entity: Not applicable We acknowledge the late submission of the Uniform Guidance report. The delay is attributed to the delayed release of the Office of Management and Budget Compliance Supplement and business disruptions experienced by NES as a result of the catastrophic Winter Storm Fern in January 2026. In conjunction with our storm response post-incident analysis, we are including staffing redundancies to ensure timely compliance with future reporting requirements. For inquiries regarding this finding, please contact Tabitha Beach at tbeach@nespower.com who is responsible for the corrective action.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1210738 2025-001
    Material Weakness Repeat
  • 1210739 2025-001
    Material Weakness Repeat
  • 1210740 2025-001
    Material Weakness Repeat
  • 1210741 2025-001
    Material Weakness Repeat
  • 1210742 2025-001
    Material Weakness Repeat
  • 1210743 2025-001
    Material Weakness Repeat
  • 1210744 2025-001
    Material Weakness Repeat
  • 1210745 2025-001
    Material Weakness Repeat
  • 1210746 2025-001
    Material Weakness Repeat
  • 1210747 2025-002
    Material Weakness Repeat
  • 1210748 2025-002
    Material Weakness Repeat
  • 1210749 2025-002
    Material Weakness Repeat
  • 1210750 2025-002
    Material Weakness Repeat
  • 1210751 2025-002
    Material Weakness Repeat
  • 1210752 2025-002
    Material Weakness Repeat
  • 1210753 2025-002
    Material Weakness Repeat
  • 1210754 2025-002
    Material Weakness Repeat
  • 1210755 2025-002
    Material Weakness Repeat
  • 1210756 2025-002
    Material Weakness Repeat
  • 1210757 2025-002
    Material Weakness Repeat
  • 1210758 2025-002
    Material Weakness Repeat
  • 1210759 2025-002
    Material Weakness Repeat
  • 1210760 2025-002
    Material Weakness Repeat
  • 1210761 2025-002
    Material Weakness Repeat
  • 1210762 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $5.90M