Finding 2023-001 – Significant Deficiency
Award No.: 15.507, WaterSMART (Sustain and Manage America’s Resources for Tomorrow)
Federal Grantor: U.S. Bureau of Reclamation Department of the Interior
Compliance Requirement: Reporting
Condition: We noted during our testing of the SF-425 Federal Financial reports were not submitted for the year ended June 30, 2023. Management informed us that the SF-425 Federal Financial Reports for reporting periods ending September 30, 2022, and March 31, 2023, had not been filed. In addition, the SF-425 Federal Financial Reports for the reporting period ended September 30, 2023, had been filed late. The Agency has subsequently communicated that all uncompleted SF-425 Federal Financial Reports have been filed.
Criteria: The U.S. Bureau of Reclamation Department of the Interior requires WaterSMART recipients to report grant financial information on a quarterly basis using the SF-425 Federal Financial Report. Quarterly reports are required to be submitted no later than 30 days are the end of each reporting period.
Cause: The Agency believed the SF-425 Federal Financial Reports for the reporting periods ending September 30, 2022, and March 31, 2023, did not need to be filed due to no federal activity taking place during the periods. For the report period ended September 30, 2023, the Agency had difficulties preparing the SF-425 Federal Financial Reporting due to unfamiliarity with the reporting process. Due to the Finance Departments lack of familiarity with the SF-425 reporting process, the report was not filed by the required due date.
Context: The program had three separate reporting requirements on a quarterly or yearly basis under the grant agreement and the SF-425 was the only report that failed to be filed on a timely basis and three of the quarterly reports for the fiscal year ended June 30, 2023, was not filed by the reporting deadline. This was unusual due to the Agency had difficulties with filing the report and the Agency’s lack of familiarity with the reporting process.
Effect: The Agency was not in compliance with the Bureau of Reclamation’s reporting requirements.
Recommendation: We recommend the Agency develop documented procedures to ensure grant reports are filed accurately and in a timely manner.
Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.
Finding 2023-002 – Significant Deficiency
Award No.: 15.507, WaterSMART (Sustain and Manage America’s Resources for Tomorrow)
Federal Grantor: U.S. Department of the Interior - Bureau of Reclamation, Direct Program
Compliance Requirement: Reporting
Condition: We noted during our testing that required performance reports and Federal Financial Reports
(SF-425) were not submitted by the deadline of 30 days after period end for the reporting periods May 13,
2022 to September 30, 2022, October 1, 2022 through March 31, 2023 and April 1, 2023 through September
30, 2023. Management informed us that the performance reports and SF-425 Reports for reporting periods
ending September 30, 2022, and March 31, 2023 had not been filed when we began the audit. In addition,
the performance and SF-425 Reports for the reporting period ended September 30, 2023 were filed more
than 30 days after the end of the reporting period, which is not in compliance with the 30-day deadline
listed in program guidelines.
Criteria: 2 CFR Section 200.328 and the terms and conditions of the WaterSMART grant requires
recipients to prepare performance reports and SF-425 Reports on a semi-annual basis for the reporting
periods of October 1 through March 31 and April 1 to September 30, which are due no later than 30 days
after the end of each reporting period. There is no indication in the program guidance that reports are not
due if there is no program activity.
Cause: The Agency believed the performance reports and SF-425 Reports for the reporting periods ending
September 30, 2022, and March 31, 2023, did not need to be filed due to no federal activity taking place
during the periods. For the report period ended September 30, 2023, the Agency had delays in preparing
the performance report and SF-425 Report due to unfamiliarity with the reporting process.
Context: The grant began on May 13, 2022 and qualifying expenses were not incurred until the third
reporting period ending September 30, 2023 so the reports for the first two reporting periods would indicate
no progress was made and no costs were incurred. All required reports have been filed as of the date of
this report.
Effect: The Agency was not in compliance with the reporting requirements under 2 CFR 200.328 and the
terms and conditions of the award.
Recommendation: We recommend the Agency develop documented procedures to ensure grant reports
are filed in accordance with Uniform Guidance and the terms and conditions of the award.
Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned
corrective action are included in the Corrective Action Plan included at the end of the report.
Finding 2023-001 – Significant Deficiency
Award No.: 15.507, WaterSMART (Sustain and Manage America’s Resources for Tomorrow)
Federal Grantor: U.S. Bureau of Reclamation Department of the Interior
Compliance Requirement: Reporting
Condition: We noted during our testing of the SF-425 Federal Financial reports were not submitted for the year ended June 30, 2023. Management informed us that the SF-425 Federal Financial Reports for reporting periods ending September 30, 2022, and March 31, 2023, had not been filed. In addition, the SF-425 Federal Financial Reports for the reporting period ended September 30, 2023, had been filed late. The Agency has subsequently communicated that all uncompleted SF-425 Federal Financial Reports have been filed.
Criteria: The U.S. Bureau of Reclamation Department of the Interior requires WaterSMART recipients to report grant financial information on a quarterly basis using the SF-425 Federal Financial Report. Quarterly reports are required to be submitted no later than 30 days are the end of each reporting period.
Cause: The Agency believed the SF-425 Federal Financial Reports for the reporting periods ending September 30, 2022, and March 31, 2023, did not need to be filed due to no federal activity taking place during the periods. For the report period ended September 30, 2023, the Agency had difficulties preparing the SF-425 Federal Financial Reporting due to unfamiliarity with the reporting process. Due to the Finance Departments lack of familiarity with the SF-425 reporting process, the report was not filed by the required due date.
Context: The program had three separate reporting requirements on a quarterly or yearly basis under the grant agreement and the SF-425 was the only report that failed to be filed on a timely basis and three of the quarterly reports for the fiscal year ended June 30, 2023, was not filed by the reporting deadline. This was unusual due to the Agency had difficulties with filing the report and the Agency’s lack of familiarity with the reporting process.
Effect: The Agency was not in compliance with the Bureau of Reclamation’s reporting requirements.
Recommendation: We recommend the Agency develop documented procedures to ensure grant reports are filed accurately and in a timely manner.
Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.
Finding 2023-002 – Significant Deficiency
Award No.: 15.507, WaterSMART (Sustain and Manage America’s Resources for Tomorrow)
Federal Grantor: U.S. Department of the Interior - Bureau of Reclamation, Direct Program
Compliance Requirement: Reporting
Condition: We noted during our testing that required performance reports and Federal Financial Reports
(SF-425) were not submitted by the deadline of 30 days after period end for the reporting periods May 13,
2022 to September 30, 2022, October 1, 2022 through March 31, 2023 and April 1, 2023 through September
30, 2023. Management informed us that the performance reports and SF-425 Reports for reporting periods
ending September 30, 2022, and March 31, 2023 had not been filed when we began the audit. In addition,
the performance and SF-425 Reports for the reporting period ended September 30, 2023 were filed more
than 30 days after the end of the reporting period, which is not in compliance with the 30-day deadline
listed in program guidelines.
Criteria: 2 CFR Section 200.328 and the terms and conditions of the WaterSMART grant requires
recipients to prepare performance reports and SF-425 Reports on a semi-annual basis for the reporting
periods of October 1 through March 31 and April 1 to September 30, which are due no later than 30 days
after the end of each reporting period. There is no indication in the program guidance that reports are not
due if there is no program activity.
Cause: The Agency believed the performance reports and SF-425 Reports for the reporting periods ending
September 30, 2022, and March 31, 2023, did not need to be filed due to no federal activity taking place
during the periods. For the report period ended September 30, 2023, the Agency had delays in preparing
the performance report and SF-425 Report due to unfamiliarity with the reporting process.
Context: The grant began on May 13, 2022 and qualifying expenses were not incurred until the third
reporting period ending September 30, 2023 so the reports for the first two reporting periods would indicate
no progress was made and no costs were incurred. All required reports have been filed as of the date of
this report.
Effect: The Agency was not in compliance with the reporting requirements under 2 CFR 200.328 and the
terms and conditions of the award.
Recommendation: We recommend the Agency develop documented procedures to ensure grant reports
are filed in accordance with Uniform Guidance and the terms and conditions of the award.
Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned
corrective action are included in the Corrective Action Plan included at the end of the report.