FAC Explorer

Audit 38520

FY End
2022-12-31
Total Expended
$1.02M
Findings
4
Programs
3
Organization: Klamath Watershed Partnership (OR)
Year: 2022 Accepted: 2023-09-28
Auditor: Molatore Scroggin Peterson & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
41506 2022-001 Significant Deficiency - I
41507 2022-002 Significant Deficiency - L
617948 2022-001 Significant Deficiency - I
617949 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
15.631 Partners for Fish and Wildlife $885,465 Yes 2
15.608 Fish and Wildlife Management Assistance $84,012 - 0
10.665 Schools and Roads - Grants to States $48,941 - 0

Contacts

Name Title Type
EPKLS8KN3BR5 Bill Lehman Auditee
5415915338 Ray Lang Auditor
No contacts on file

Notes to SEFA

Title: Federal Financial Assistance Accounting Policies: The Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of the Uniform Guidance, therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pursuant to Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, non-monetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the schedule of expenditures of federal awards, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance.
Title: Major Programs Accounting Policies: The Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of the Uniform Guidance, therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Uniform Guidance establishes criteria to be used in defining major federal financial assistance programs. Major programs for Klamath Watershed Partnership are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes.
Title: Reporting Entity Accounting Policies: The Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of the Uniform Guidance, therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The reporting entity is fully described in notes to financial statements. The schedule includes all federal programs administered by Klamath Watershed Partnership for the year ended December 31, 2022.

Finding Details

Finding 2022-001
Finding 2022-01: 15.631 Partners for Fish and Wildlife Criteria: 2 CFR 200.318 requires entities to comply with procurement procedures within the section. Condition and Context: For the year ended December 31, 2022, Klamath Watershed Partnership?s procurement policy didn?t align with the requirements described in 2 CFR 200.318 through 2 CFR 200.327. Cause: Klamath Watershed Partnership incidentally thought the procurements for the federal funds were being performed by the oversight agency awarding the funds and their own internal procurement procedures would apply to the other purchase of goods and services. Effect or Potential Effect: The procurement procedures were not performed by Klamath Watershed Partnership. This could have resulted in paying more than ideal or resulted in contracts provided to favored vendors without an opportunity for proposals of other vendors. Questioned Costs: None Context: The procurement policy implemented did not align with the requirement of 2 CFR 200.318. This created a systemic failure to comply with 2 CFR 200.318 for all purchases that would be subject to the procurement policy. Recommendation: Klamath Watershed Partnership should update their procurement policy to align with 2 CFR 200.318 through 2 CFR 200.327. This policy should be implemented immediately after the update is approved. Views of responsible officials and planned corrective actions: Management agrees with the finding and have updated their procurement policy to align with the requirements of 2 CFR 200.318.
Finding 2022-002
Finding 2022-02: 15.631 Partners for Fish and Wildlife Criteria: 2 CFR 200.328 requires entities to comply with financial reporting as communicated in the federal award terms. Condition and Context: For the year ended December 31, 2022, Klamath Watershed Partnership?s financial reporting were reported on form SF-425 for the multiple federal awards under the Partners for Fish and Wildlife program. 4 reports were identified with inaccuracies. Cause: Klamath Watershed Partnership incidentally reported amounts on specific lines that weren?t aligned with the amounts supported through underlying records. Effect or Potential Effect: The reports filed reported erroneous amounts for multiple federal awards. Questioned Costs: None Context: The reports were prepared accurately in most of the SF-425 reports, but there were 4 reports that were not accurate. These 4 reports varied in the areas of the discrepancies. This suggests that the issue is not isolated or systemic, but a combination of both. Recommendation: Klamath Watershed Partnership should attach the report or other information used to prepare the reports for the use of the employee responsible for reviewing the report prior to filing. Also, management should amend the reports identified. Views of responsible officials and planned corrective actions: Management agrees with the finding and will perform a review with supporting information in future filings. Also, management will amend the identified reports.
Finding 2022-001
Finding 2022-01: 15.631 Partners for Fish and Wildlife Criteria: 2 CFR 200.318 requires entities to comply with procurement procedures within the section. Condition and Context: For the year ended December 31, 2022, Klamath Watershed Partnership?s procurement policy didn?t align with the requirements described in 2 CFR 200.318 through 2 CFR 200.327. Cause: Klamath Watershed Partnership incidentally thought the procurements for the federal funds were being performed by the oversight agency awarding the funds and their own internal procurement procedures would apply to the other purchase of goods and services. Effect or Potential Effect: The procurement procedures were not performed by Klamath Watershed Partnership. This could have resulted in paying more than ideal or resulted in contracts provided to favored vendors without an opportunity for proposals of other vendors. Questioned Costs: None Context: The procurement policy implemented did not align with the requirement of 2 CFR 200.318. This created a systemic failure to comply with 2 CFR 200.318 for all purchases that would be subject to the procurement policy. Recommendation: Klamath Watershed Partnership should update their procurement policy to align with 2 CFR 200.318 through 2 CFR 200.327. This policy should be implemented immediately after the update is approved. Views of responsible officials and planned corrective actions: Management agrees with the finding and have updated their procurement policy to align with the requirements of 2 CFR 200.318.
Finding 2022-002
Finding 2022-02: 15.631 Partners for Fish and Wildlife Criteria: 2 CFR 200.328 requires entities to comply with financial reporting as communicated in the federal award terms. Condition and Context: For the year ended December 31, 2022, Klamath Watershed Partnership?s financial reporting were reported on form SF-425 for the multiple federal awards under the Partners for Fish and Wildlife program. 4 reports were identified with inaccuracies. Cause: Klamath Watershed Partnership incidentally reported amounts on specific lines that weren?t aligned with the amounts supported through underlying records. Effect or Potential Effect: The reports filed reported erroneous amounts for multiple federal awards. Questioned Costs: None Context: The reports were prepared accurately in most of the SF-425 reports, but there were 4 reports that were not accurate. These 4 reports varied in the areas of the discrepancies. This suggests that the issue is not isolated or systemic, but a combination of both. Recommendation: Klamath Watershed Partnership should attach the report or other information used to prepare the reports for the use of the employee responsible for reviewing the report prior to filing. Also, management should amend the reports identified. Views of responsible officials and planned corrective actions: Management agrees with the finding and will perform a review with supporting information in future filings. Also, management will amend the identified reports.