Finding Text
Finding 2023-003 – major program FAL 21.027Coronavirus State and Local Fiscal Recovery Funds Criteria: Section D.20 of the grant contract between the State of Tennessee and Meriwether Lewis Electric Cooperative requires the grantee to comply with 2 C.F.R. Sections 200.317 - 200.236 when procuring property and services. These regulations require, in part, the methods of procurement to be followed. Condition: The Cooperative did not utilize the procurement methods provided under the regulations. Cause: The Cooperative’s procurement procedures do not provide for the formal procurement methods required by the regulations, and procurement of project costs was completed before the grant process began. Effect: Certain costs were submitted for reimbursement without following the formal procurement methods required by the regulations. Recommendation: Procurement procedures related to costs reimbursable under federal grants should be developed in accordance with the regulations and followed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 43.