Finding 559021 (2024-002)

Requirement

Questioned Costs

Year

2024

Accepted

2025-05-01

Audit: 355278

Organization: Southeastern Indiana Rural Electric Membership Corporation (IN)

Auditor: Lwg CPAS & Advisors

AI Summary

Answer: Human error led to the double submission of costs related to grant-eligible areas, resulting in questioned costs.
Trend: Two specific contractor invoices were identified as problematic, with one being duplicated and another overstated by $51,259.
List: Follow up by reviewing all invoices for duplication and ensuring accurate reporting of federal expenditures.

Finding Text

Certain costs were allocated to grant eligible areas based on construction to be performed in those areas. The amounts that were incorrectly submitted more than once was due to human error. The total questioned costs were related to allowable costs from two of the REMC's contractor. One invoice received from a contractor was included twice in the federal expenditures in the amount of $4,446. Another amount submitted for grant reimbursement had an amount included as a federal expenditure that was $51,259 more than the invoice amount. All invoices were analyzed to determine cases of duplicated invoices.

Corrective Action Plan

Southeastern Indiana REMC is aware there were two invoices submitted in error totaling $55,705. The result of this error was an overstatement of the amount eligible for reimbursement. Southeastern Indiana REMC has invoices eligible for reimbursement that were not submitted which offsets these errors. Southeastern Indiana REMC, given these circumstances, does not believe they have requested total funds in excess of eligible costs.

Other Findings in this Audit

559020 2024-001

Significant Deficiency
1135462 2024-001

Significant Deficiency
1135463 2024-002

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Programs in Audit

ALN	Program Name	Expenditures
21.029	Coronavirus Capital Projects Fund	$7.37M