Finding 1086173 (2024-002)

Reporting Deficiency in internal controls over reporting and noncompliance U.S. Department of Interior; Reclamation States Emergency Drought Relief. CFDA No. 15.514 Questioned Cost: Not applicable How the Questioned Cost was Computed: Not applicable Criteria: The District is required to file a Federal Financial Report (SF-425) semi-annually detailing federal share and recipient share of expenditures that occurred during the reporting period. Condition: We identified an error in the Federal Financial Report for the reporting period ending March 31, 2023. Federal share of expenditures totaling $488,230 and recipient share of expenditures totaling $508,158 were paid during the reporting period but were omitted from the report. These expenditures were included in the subsequent filing for the period ending September 30, 2023. Cause: Internal controls over the preparation of the Federal Financial Report (SF-425) were not properly designed to identify which expenditures were paid during which reporting period. Effect: None Recommendation: We recommend improving the reconciliation of federal financial reports with supporting accounting records process. View of Responsible Officials: Management agrees with the finding and has provided the accompanying corrective action plan.