Finding 3183 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-12-04

Audit: 5206

Organization: Greenfields Irrigation District (MT)

Auditor: Douglas Wilson and Company PC

AI Summary

Core Issue: The District could not locate documentation for $6,225.31 in matched costs for the water efficiency project.
Impacted Requirements: The grant requires proper documentation to support all matched amounts, which was not met due to misplaced records.
Recommended Follow-Up: Implement weekly record-keeping practices to ensure accurate documentation of in-kind labor and equipment usage moving forward.

Finding Text

WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Assistance Listing Number 15.507, Matching Condition: The District used a spreadsheet to track matched costs for the water efficiency project. The District Charge-Out Slips were used to document hours worked and equipment used, with the hourly rates and totals supporting the in-kind match. The District could not find the Charge-Out Slips supporting $6,225.31 in matched amounts. Criteria: The grant award for the water efficiency project showed the award total of $75,000 of federal funding and non-federal (District) share as $87,295. Documentation should be retained to support the matched amount. Context: The District met the match requirement, but could not find support for $6,255.31. Effect: There is unsupported amounts for the match reported on the federal financial reports. Cause: There was turnover in the staff position responsible for tracking this information. The Charge-Out Slips were misplaced. Audit Recommendation: We recommend the District retain documentation supporting match amounts. District’s Response: The in-kind, recipient match requirement for this grant was comprised predominantly of recipient labor and equipment usage. Poor record keeping by a past employee resulted in inadequate, in-house documentation to support the in-kind services being claimed as a match. Going forward, weekly record keeping of the in-kind labor and recipient’s equipment usage will result in more accurate documentation. As mentioned, the dollar-for-dollar match requirement was sufficiently met and the undocumented $6,255.31 was for in-kind services above the grant match requirement threshold.

Corrective Action Plan

Planned Corrective Action: The Planned Corrective Action is to instruct GID Grant Managers the critical need to and importance of properly documenting the use of GID resources as it applies to the recipient’s in-kind match contribution. The Grant Manager must coordinate with Project Superintendent on a weekly basis to summarize the GID labor, GID equipment, and GID materials utilized on the grant specific project. Rates applied are those proposed and accepted during negotiation of the governing Grant Agreement. If an item not previously addressed in the Grant Agreement is utilized on the Project and its use is to be claimed, the rate to apply should correspond to the GID’s current rate sheet in effect. Name of Contact Person: Erling A. Juel, District Manager, will be responsible for implementing this corrective action by working with the District’s grant managers to properly implement the corrective action for on-going and current grants. Anticipated completion date: The Corrective Action will be implemented immediately and applied to the administration of on-going Federal grants.

Other Findings in this Audit

3184 2022-003

Significant Deficiency
3185 2022-004

Significant Deficiency
579625 2022-002

Significant Deficiency
579626 2022-003

Significant Deficiency
579627 2022-004

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
15.507	Watersmart (sustaining and Manage America's Resources for Tomorrow)	$1.45M