Finding Text
Finding 2023-002 – major program FAL 21.027 Coronavirus 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, that grantees must have documented procurement procedures. Condition: The grantee does not have documented procurement procedures. Cause: The Cooperative does not maintain written procurement procedures, and procurement of project costs was completed before the grant process began. Effect: Certain costs were submitted for reimbursement without following documented procurement procedures. Recommendation: Documented procurement procedures should be developed. Management Response – Management’s response is included in Management’s Corrective Action Plan located on page 42.