THUMB ELECTRIC COOPERATIVE

EIN: 381101255

UEI: MQJSHBLN16W9

Data as of August 19, 2026

1
Audit Years
2
Total Findings
0
Repeat Findings

FY 2024-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on September 22, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 22, 2026, which was (151 days ago).

What is a management decision? →
2024-003
Reporting
MATERIAL WEAKNESS
Condition

Department of the Treasury, Passed through the State of Michigan Federal Financial Assistance Listing 21.029, CV0019120, 2024 COVID-19 – Coronavirus Capital Projects Fund Reporting Material Weakness in Internal Control over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for review of the quarterly submissions. Condition – During the course of our engagement, we noted that the Cooperative has no formal review process for the quarterly reports, which could result in a material misstatement of the Cooperative’s schedule of expenditures of federal awards. Cause – The Cooperative does not have an internal control system designed to review the quarterly submissions. Effect – This deficiency could result in a misstatement to the quarterly reports and noncompliance with federal awards that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – Overall reporting process. Repeat Finding from Prior Year(s) – No. Recommendation – We recommend the Cooperative establish a review process prior to submission. This review should be done at the accounting supervisor levels. Views of Responsible Officials – There is no disagreement with the audit finding.

Corrective Action Plan

Department of the Treasury, Passed Through the State of Michigan Federal Financial Assistance Listing 21.029, CV0019120, 2024 COVID-19 - Coronavirus Capital Projects Fund Reporting Material Weakness in Internal Control over Compliance Finding Summary: The Cooperative has no formal review process for the quarterly reports, which could result in a material misstatement of the Cooperative's schedule of expenditures .of federal awards. Responsible Individuals: Director of Administrative Services, General Manager Corrective Action Plan: The Cooperative will implement a formal review process for the quarterly reports, ensuring there is adequate segregation of duties and proper oversight. Anticipated Completion Date: December 31, 2025

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2024-004
Procurement & Suspension/Debarment
MATERIAL WEAKNESS
Condition

Department of the Treasury, Passed through the State of Michigan Federal Financial Assistance Listing 21.029, CV0019120, 2024 COVID-19 – Coronavirus Capital Projects Fund Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension, and debarment it was identified that the Cooperative’s written policy did not address the requirements of 2 CFR sections 200.318 through 200.326. In addition, the Cooperative did not follow procurement, suspension, and debarment procedures required under the Uniform Guidance prior to entering into contracts with vendors. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of compliant policies and procedures increases the overall risk of non-compliance. Questioned Costs – None reported. Context/Sampling – Overall procurement, suspension, and debarment process. Repeat Finding from Prior Years – No. Recommendation – We recommend that management establish a written policy that is in compliance with all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement, suspension, and debarment procedures performed to comply with these CFR sections. Views of Responsible Officials – There is no disagreement with the audit finding.

Corrective Action Plan

Department of the Treasury, Passed Through the State of Michigan Federal Financial Assistance Listing 21.029, CV0019120, 2024 COVID-19 - Coronavirus Capital Projects Fund Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Material NoncomplianceFinding Summary: During the course of the engagement, it was identified that the Cooperative's written policy did not address the requirements of 2 CFR sections 200.318 through 200.326. In addition, the Cooperative did not follow procurement, suspension, and debarment procedures required under the Uniform Guidance prior to entering into contracts with vendors. Responsible Individuals: Director of Administration Services, General Manager Corrective Action Plan: The Cooperative will update its Board Policy No. 205 to include the requirements of 2 CFR sections 200.318 through 200.326. In addition, the Cooperative will maintain adequate supporting documentation and records to document history and methods of procurement, suspension, and debarment procedures performed to comply with these CFR sections. Anticipated Completion Date: December 31, 2025

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