Audit 366872

Finding 2024-001: Report Review Program: 66.958 Water Infrastructure Finance and Innovation Federal Agency: U.S. Environmental Protection Agency Award No: WIFIA-N18147WI Award Year: 2024 Criteria: OMB guidance in 2 CFR part 180, which implements Executive Orders 12549 and 12689; (2 CFR section 200.318(c)) and 48 CFR sections 52.203-13 and 52.303-16 requires quarterly reports to be reviewed by someone other than the original preparer. Condition/Context: Quarterly reports submitted were not reviewed by someone other than the preparer. The quarterly reports are both prepared and signed by the Administrative Services Manager. While the information used in preparing the reports is gathered from the City and Black & Veatch (Construction Manager) is detailed and goes through reviews prior to being provided, there is no independent review of the report prior to authorization and submittal. Two out of the four quarterly reports were tested. Our sample was not statistically valid. Cause: The water utility has had staffing changes in that the individual who has previously reviewed the reports, had gone to part time. Effect: While the underlying data used to prepare the reports is reviewed, without an independent review of the reports the report submitted may not match the underlying data. Questioned Costs: None noted. Recommendation: We recommend that management identify an individual to complete a review of quarterly reports prepared prior to submission. Management Response: While management understands the role of the review of the quarterly reports they were relying on the reviews of the underlying information during this transition.