Finding 508416 (2024-001)

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Requirement
I
Questioned Costs
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Year
2024
Accepted
2024-11-20
Audit: 329042
Organization: Volunteer Energy Cooperative (TN)

AI Summary

  • Core Issue: Volunteer Energy Cooperative's procurement procedures are missing key elements required by federal regulations.
  • Impacted Requirements: Compliance with 2 C.F.R. Sections 200.317 - 200.327 is not fully met, particularly regarding bidding notices and sealed bidding.
  • Recommended Follow-Up: Update procurement procedures to align with federal requirements to ensure compliance.

Finding Text

Criteria: Section D.20 of the grant contract between the State of Tennessee and Volunteer Energy Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.326 when procuring property and services. These regulations require, in part, that grantees must have documented procurement procedures consistent with 2 C.F.R. Sections 200.317 - 200.327. Cause, Condition and Effect: While the Cooperative does have written procurement procedures, they do not include all of the required procurement procedures as defined within 2 C.F.R. Sections 200.317-200.327. Specifically, procedures addressing the publication of bidding notices and sealed bidding are not included. Recommendation: Documented procurement procedures for federal awards should be updated to be consistent with the requirements of 2 C.F.R. Sections 200.317-200.327. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 63.

Corrective Action Plan

VEC will modify its procurement policy to follow the documentation requirements in 2 CFR 200.318

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.66M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $660,298