Finding 1224751 (2025-002)

Federal Program Disaster Grants – Public Assistance (AL #97.036) Federal Award Number and Year – FEMA-4760-DR, 2024 Activities Allowable or Unallowable and Allowable Costs/Cost Principals Other Matters and Significant Deficiency Criteria FEMA provides Public Assistance funding for mileage based on the lower of either the local rate or the FEMA rate. Condition During testing we noted that Dakota Valley Electric Cooperative, Inc. and Subsidiary used a higher rate than the FEMA rate when charging mileage to the program. Question Costs None Context In a population of over 250, a sample of 40 transactions were tested. In this sample, one transaction was charging mileage to the program. We noted during testing that Dakota Valley Electric Cooperative, Inc. and Subsidiary used a local rate that was higher than the FEMA rate. Cause Management oversight Effect Dakota Valley Electric Cooperative, Inc. and Subsidiary charged unallowed expenses to this grant. Repeat Finding New finding Recommendation Dakota Valley Electric Cooperative, Inc. and Subsidiary should implement policies and procedures to ensure they use a mileage rate that is allowed under federal requirements. Views of the Responsible Officials Dakota Valley Electric Cooperative, Inc. and Subsidiary agrees with the recommendation.