Finding 566904 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-24
Audit: 359771
Auditor: Frost PLLC

AI Summary

  • Core Issue: The Association failed to complete required quarterly financial reporting for loans under the Infrastructure Investment and Jobs Act.
  • Impacted Requirements: Compliance with loan agreements is at risk due to lack of monitoring procedures.
  • Recommended Follow-Up: Implement controls to ensure timely financial reporting and compliance with loan agreements.

Finding Text

Significant Deficiency Finding: 2024-001 Identification of the Federal Program: Assistance Listing Number N/A – Infrastructure Investment and Jobs Act Criteria: The Association must follow the requirements of the loan agreements received through the Infrastructure Investments and Jobs Act. One requirement of these loan agreements is quarterly financial reporting. Condition and Context: The Association did not perform the required quarterly financial reporting. Cause: The Association’s management has not implemented procedures to monitor the quarterly financial reporting. Effect or Potential Effect: Controls over compliance are not functioning correctly, which can lead to default of the loans. Questioned Costs: None Recommendation: We recommend the Association put controls in place to monitor financial reporting to ensure compliance with the loan agreements.

Corrective Action Plan

Views of the Responsible Officials and Planned Corrective Actions The Yuma County Water Users’ Association acknowledges the findings related to the nonperformance of required quarterly financial reporting under the Infrastructure Investment and Jobs Act (IIJA) loan agreements. The primary cause of this issue was the absence of necessary data—specifically, detailed actual expense information—which was not provided by the Imperial Irrigation District (IID). Without this information, the Association was unable to complete and submit the quarterly reports as required under the terms of the agreement. The Association is fully committed to resolving this issue and ensuring ongoing compliance with all provisions of the loan agreements. We are actively engaging with the relevant parties to obtain the required data and implement measures to prevent future delays in financial reporting. Corrective Actions: To address this issue, the Association will collaborate closely with both the Bureau of Reclamation and the Imperial Irrigation District (IID) to ensure timely receipt of quarterly actual expense data. Specifically: • At the end of each quarter, the Association will issue a formal request to IID for detailed expense data. • Follow-up reminders will be sent as necessary to facilitate timely submission. • This coordination will support the Association’s ability to meet quarterly financial reporting deadlines as required by the IIJA loan agreements. Timeline for Implementation: The corrective actions outlined above will be implemented immediately. Full compliance with quarterly reporting requirements is expected by the end of the second quarter.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1143346 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.U12 Infrastructure Investment and Jobs Act $6.38M