Finding Text
WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Assistance Listing Number 15.507, Cash Management Condition: The District overdrew on the water efficiency project grant. Criteria: The District used the reimbursement payment method for drawing federal funds, by incurring costs and requesting reimbursement for costs incurred for the project. Project costs must be paid with non-federal entity funds before submitting a payment request. Context: The District did not have expenditures supporting $2,387.08 in federal funds received. Once this error was found, management contacted BOR and received guidance on how to correct the error. Effect: The District received too much in federal funding for the water efficiency project. Cause: This was an error and lack of oversight. Audit Recommendation: We recommend the District review all payment requests for accuracy and retain all documentation for expenditures. District’s Response: As with the previous audit finding, poor record keeping by the same previous employee resulted in an overdraw of $2,387.08 that was not adequately substantiated by matching receipts. The District is currently working with the Reclamation grant program manager to return these overdrawn funds. On future grants, reimbursement draws will be strictly limited to existing and actual corresponding receipts and invoices.