Finding 1163191 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-12-01

AI Summary

  • Core Issue: The Authority submitted all required semi-annual Federal Financial Reports late, on June 19, 2024, instead of within 30 days after each reporting period.
  • Impacted Requirements: This delay violates compliance requirements under 2 CFR Part 200.303 and the specific terms of the Water Storage Enhancement Grant program.
  • Recommended Follow-up: The Authority must implement measures to ensure timely submission of reports and address staffing issues affecting reporting responsibilities.

Finding Text

Finding 2023-005 – Significant Deficiency – Untimely Submission of Semi-annual Federal Financial Reports Award No.: 15.574 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation. Compliance Requirement: Reporting. Condition: The semi-annual Federal Financial Reports (SF-425) for the first five reporting periods of October 1, 2021, to March 31, 2022, April 1, 2022, to September 30, 2022, October 1, 2022, to March 31, 2023, April 1, 2023, to September 30, 2023, and October 1, 2023, to March 31, 2024, were all submitted on June 19, 2024. Criteria: According to 2 CFR Part 200.303, the Authority is required to establish and maintain effective internal controls over Federal awards that provides reasonable assurance that the Authority is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Water Storage Enhancement Grant program resolutions require the Authority to file financial reports throughout the year. Semi-annual Federal Financial Reports (SF-425) shall be submitted no later than 30 days after the end of each reporting period. Cause: The Authority experience turnover and vacancies in key positions for reporting during the fiscal year. Effect: The Authority was not fully in compliance with reporting requirements. Recommendation: The Authority needs to ensure that reports are complete by the due date. 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.

Corrective Action Plan

Finding Reference Number: 2023-004 Description of Finding: The Semi-annual Federal Financial Reports (SF-425) was not submitted timely. Statement of Concurrence or Nonconcurrence: Authority staff agrees to the finding as described. Corrective Action: • An internal grant manager has been appointed to enable closer financial oversight and we will work closely with engineering and outside consultants to ensure future grant compliance. • Director of Finance has looked into grant management certification courses in order to further educate staff on grant tracking and reporting requirements. • The Authority has since contracted with outside consultants to assist with grant management.

Categories

Reporting

Other Findings in this Audit

  • 1163189 2023-002
    Material Weakness Repeat
  • 1163190 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
15.574 WATER STORAGE ENHANCEMENT $2.09M