Finding 380940 (2023-001)

Federal Program Hazard Mitigation Grant (AL 97.039) Federal Award Number and Year - FEMA-4660-DR-ND, 2022 Reporting Significant Deficiency Criteria Minnkota Power Cooperative, Inc., omitted reimbursement of $63,039 of federal expenditures during the year. Also, a system of internal controls requires all federal reports to be reviewed and approved before they are submitted. Condition We noted that Minnkota Power Cooperative, Inc. omitted reimbursement of $63,039 of federal expenditures during the year but this was found and corrected during the single audit. Furthermore, we tested 2 quarterly reports in a population of 3 and noted there was no review or approval of reports before they were submitted to ensure accuracy and timeliness of reports. Cause Lack of oversight by management Questioned Costs None Context Minnkota Power Cooperative, Inc. omitted reimbursement of $63,039 of federal expenditures. Also, 2 reports were selected from a population of 3. Effect Minnkota Power Cooperative, Inc. is not in compliance with Uniform Guidance. Also, there is an increased risk of a report being submitted inaccurately or late. Repeat Finding New finding Recommendation Minnkota Power Cooperative, Inc. should implement policies and procedures to ensure all federal dollars they are entitled to are being obtained. Furthermore, Minnkota Power Cooperative, Inc. should implement policies and procedures that will ensure all reports are reviewed and approved before they are submitted. Views of Responsible Officials Minnkota Power Cooperative, Inc. agrees with the recommendation.