Finding 1239022 (2025-004)

Department of Energy, Federal Financial Assistance Listing 81.254, DE-GD0000886, 2025 Grid Infrastructure Deployment and Resilience Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During testing of quarterly financial and performance reports, we noted that the Cooperative did not retain the supporting documentation used in the preparation of the reports. As a result, reported amounts could not be reconciled to the documentation subsequently provided by the Cooperative. Cause: The Cooperative's procedures did not require the retention of the specific supporting schedules and records used to prepare and submit quarterly financial and performance reports. Effect: Failure to maintain adequate supporting documentation for quarterly reports increases the risk that reported information may be inaccurate, incomplete, or unsupported and limits the Cooperative's ability to demonstrate compliance with federal reporting requirements. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 3 out of 8 quarterly reports were selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend that the Cooperative establish and implement procedures to retain all supporting documentation, schedules, and records used in the preparation and submission of quarterly financial and performance reports. Such documentation should be maintained in sufficient detail to support reported amounts and facilitate review and verification. Views of Responsible Officials: Management agrees with the finding.