EIN: 741095072
UEI: CJWVN7916DS4
Audited by: Bolinger, Segars, Gilbert & Moss, LLP
Oversight agency: 97 [Department of Homeland Security]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 30, 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 June 30, 2026 (65 days ago).
What is a management decision? →Incorrect equipment hours used on the project worksheet submission Compliance Requirement: Allowable Costs/Cost Principles Condition/Criteria: The recipient and subrecipient must: Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. (2 CFR section 200.303(a)). Cause: The Cooperative personnel did not match the labor hours from employee timesheets to the project worksheet. Effect: Incorrect hours were recorded on the project worksheet. The errors noted did not result in material known or likely questioned costs required to be reported. Recommendation: Review timesheets to ensure they agree to the hours reported on the project worksheet. Implement a second level of review by another employee so the individual tasked with preparing the project worksheet is not performing the review.
Show full finding ▾Hide full finding ▴Incorrect equipment hours used on the project worksheet submission Compliance Requirement: Allowable Costs/Cost Principles Condition/Criteria: The recipient and subrecipient must: Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. (2 CFR section 200.303(a)). Cause: The Cooperative personnel did not match the labor hours from employee timesheets to the project worksheet. Effect: Incorrect hours were recorded on the project worksheet. The errors noted did not result in material known or likely questioned costs required to be reported. Recommendation: Review timesheets to ensure they agree to the hours reported on the project worksheet. Implement a second level of review by another employee so the individual tasked with preparing the project worksheet is not performing the review.
The Cooperative submitted the reimbursement request to the Federal Emergency Management Agency (FEMA) for equipment costs based on a conservative (less cost) approach using actual mileage costs. The hourly data submitted to FEMA was identified as not used for the reimbursement request. This information was only provided to demonstrate that the mileage-based cost was less than the hourly calculation. The hourly reimbursement data was a draft and it was indicated that the costs for aerial/digger equipment units were not included. FEMA opted to change the request to use the hourly calculation just prior to the submission deadline leaving no time for further discussion or analysis. A fully completed hourly based cost reimbursement request would have resulted in a higher requested amount and the hourly variance identified would have been negligible. Any future submissions will be based on the hourly approach and will be thoroughly reviewed.
Material overhead allocations were included in the project worksheet submission Compliance Requirement: Allowable Costs/Cost Principles Condition/Criteria: Costs that otherwise would be treated as indirect costs may also be considered direct costs if they are directly related to a specific award (2 CFR Section 200.413(b). Cause: Material overhead allocations were included in the project worksheet. Effect: Indirect overheads are included in the material costs although they are not directly related to the federal award. Recommendation: Communicate with FEMA regarding supporting documentation that is required to substantiate material overhead costs as being directly related to the federal award.
Show full finding ▾Hide full finding ▴Material overhead allocations were included in the project worksheet submission Compliance Requirement: Allowable Costs/Cost Principles Condition/Criteria: Costs that otherwise would be treated as indirect costs may also be considered direct costs if they are directly related to a specific award (2 CFR Section 200.413(b). Cause: Material overhead allocations were included in the project worksheet. Effect: Indirect overheads are included in the material costs although they are not directly related to the federal award. Recommendation: Communicate with FEMA regarding supporting documentation that is required to substantiate material overhead costs as being directly related to the federal award.
During a December 13, 2024 conference call with FEMA, Texas Department of Emergency Management (TDEM) and Ernst & Young (EY), potential reimbursement for overheads was discussed. FEMA representatives could not clearly state if overheads would be allowable. FEMA representatives recommended including them for consideration. Both construction and material overheads were included in the initial reimbursement request. The day before the submission deadline FEMA requested clarification on the construction overheads. Given the time constraint, the Cooperative agreed to withdraw the construction overhead amount from the submission. No additional information was requested on the material overheads. Written confirmation will be requested from FEMA for any future overhead cost reimbursement requested.
FAC accepted this audit on June 18, 2023 — management decision was due December 18, 2023.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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