Acknowledgment of Finding: Meriwether Lewis Electric Cooperative acknowledges the audit finding regarding the internal control over costs to be submitted for reimbursement. Cause and Intent: The clerical errors leading to this discrepancy were unintended and stemmed from the retrospective review and abundance of invoices related prior to receiving the grant contract. Much of this project covered within the grant contract was completed prior to receipt of the contract. These errors were solely attributable to clerical oversight and had no intentional misrepresentation or malpractice. The retrospective nature of gathering a substantial volume of invoices over an extended period resulted in inadvertent mistakes in cost allocation. Corrective Action Taken: In response to the audit finding, Meriwether Lewis Electric Cooperative has taken corrective action. This includes:
a. Review and Rectification- Once an amount was identified, a review of all invoices and related documentation has been conducted to identify and rectify any clerical inaccuracies that could have resulted in ineligible costs.
b. Reconciliation and Adjustment- Misallocated costs identified during the review have been excluded.
c. Enhanced Controls- Strengthened controls and oversight measures have been implemented within the reimbursement preparation process to prevent future errors. Mitigating Measures: While the errors resulted in a misallocation of costs, the overall financial impact on the grant reimbursement remains mitigated. The corrective actions taken promptly rectified the issues, ensuring compliance with federal regulations and the accurate allocation of costs related to the project. Commitment to Continuous Improvement: Meriwether Lewis Electric Cooperative remains committed to maintaining the highest standards of compliance and integrity in financial reporting. The Cooperative is dedicated to ongoing training, process and procedure improvements and strengthen controls to prevent future errors. Timeline and Accountability: The corrective action plan is anticipated to be effective within the next fiscal year. The Cooperative President & CEO is responsible for oversight of organizational policies and procedures.Conclusion: Meriwether Lewis Electric Cooperative strives for transparency, honesty and integrity within financial reporting and adherence to federal guidelines.