Finding Text
Finding 2024-004 – Significant Deficiency
Award No.: Assistance List No. 15.555
Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation.
Compliance Requirement: Reporting.
Condition: The District had a required $15,000 local match for the Poso Bridge Replacement project. The District had eligible expenditures to satisfy the local match, but did not report the local match to the grantor (U.S. Department of the Interior, Bureau of Reclamation) on the required SF-425 Federal Financial Reports.
Criteria: The OMB’s approved Federal Financial Report (SF-425) states in line item instructions for the Federal Financial Report, “10i – Total Recipient Share Required: Enter the total required recipient share for reporting period specified in line 9. The required recipient share should include all matching and cost sharing provided by recipients and third-party providers to meet the level required by the Federal agency.”
Cause: The SF-425 reports submitted by the District did not include the required recipient share on the report.
Effect: The required recipient share was not properly reported to the grantor.
Context: The District submitted the required semi-annual SF-425 Federal Financial Reports to the grantor and did not include the information for the required local share.
Recommendation: We recommend management implement additional controls over the reporting process that ensures each report complies with the reporting requirements outlined in the SF-425 Federal Financial Reports. We further recommend the District establish a policy for internal review and sign-off for each submitted report to ensure clerical accuracy.
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.