Finding 571916 (2024-002)

Significant Deficiency
Requirement
ABH
Questioned Costs
-
Year
2024
Accepted
2025-07-24

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over equipment hours charged to federal program 97.036 – Disaster Grants – Public Assistance.
  • Impacted Requirements: Proper oversight and review procedures are needed to ensure submitted equipment hours are supported and accurate.
  • Recommended Follow-Up: The Cooperative should implement oversight and review processes for equipment hours, ensuring they are submitted and approved by management before reimbursement.

Finding Text

Identification of the federal program: 97.036 – Disaster Grants – Public Assistance Significant deficiency in internal controls over allowable activities, allowable costs, and period of performance. Criteria: Proper oversight, review procedures, and controls should be established to ensure the amounts submitted for equipment hours are adequately supported. Condition: Equipment hours were tracked by one individual within the Cooperative and no review or approval of the equipment hours occurred. Cause: There was a lack of review of equipment hours charged to the grant. Effect: The absence of proper review procedures increases the risk of errors, inaccuracies, or omissions in submitted expenses. Questioned Costs: None Recommendations: The Cooperative should establish oversight and review procedures to ensure all equipment hours are properly submitted by employees and reviewed by management prior to the submission of them for reimbursement. Views of responsible officials: The Controller captured the time associated with each piece of equipment via individual meetings with each employee. Moving forward we have set up to have equipment usage captured within the timesheets by each employee. Timesheets are then approved by the supervisor.

Corrective Action Plan

We have implemented a time tracking software feature allowing employees to associate fleet assets with their time entries. Entries will be submitted by the employee or Line Foreman, then reviewed and approved by a separate supervisor or manager.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management Period of Performance Significant Deficiency Equipment & Real Property Management

Other Findings in this Audit

  • 571915 2024-001
    Material Weakness
  • 571917 2024-003
    Material Weakness
  • 571918 2024-004
    Significant Deficiency
  • 571919 2024-005
    Significant Deficiency
  • 1148357 2024-001
    Material Weakness
  • 1148358 2024-002
    Significant Deficiency
  • 1148359 2024-003
    Material Weakness
  • 1148360 2024-004
    Significant Deficiency
  • 1148361 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.047 Bric: Building Resilient Infrastructure and Communities $1.52M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $954,731