Finding Text
Finding 2023-001 – Significant Deficiency
Award No.: 15.507, WaterSMART (Sustain and Manage America’s Resources for Tomorrow)
Federal Grantor: U.S. Bureau of Reclamation Department of the Interior
Compliance Requirement: Reporting
Condition: We noted during our testing of the SF-425 Federal Financial reports were not submitted for the year ended June 30, 2023. Management informed us that the SF-425 Federal Financial Reports for reporting periods ending September 30, 2022, and March 31, 2023, had not been filed. In addition, the SF-425 Federal Financial Reports for the reporting period ended September 30, 2023, had been filed late. The Agency has subsequently communicated that all uncompleted SF-425 Federal Financial Reports have been filed.
Criteria: The U.S. Bureau of Reclamation Department of the Interior requires WaterSMART recipients to report grant financial information on a quarterly basis using the SF-425 Federal Financial Report. Quarterly reports are required to be submitted no later than 30 days are the end of each reporting period.
Cause: The Agency believed the SF-425 Federal Financial Reports for the reporting periods ending September 30, 2022, and March 31, 2023, did not need to be filed due to no federal activity taking place during the periods. For the report period ended September 30, 2023, the Agency had difficulties preparing the SF-425 Federal Financial Reporting due to unfamiliarity with the reporting process. Due to the Finance Departments lack of familiarity with the SF-425 reporting process, the report was not filed by the required due date.
Context: The program had three separate reporting requirements on a quarterly or yearly basis under the grant agreement and the SF-425 was the only report that failed to be filed on a timely basis and three of the quarterly reports for the fiscal year ended June 30, 2023, was not filed by the reporting deadline. This was unusual due to the Agency had difficulties with filing the report and the Agency’s lack of familiarity with the reporting process.
Effect: The Agency was not in compliance with the Bureau of Reclamation’s reporting requirements.
Recommendation: We recommend the Agency develop documented procedures to ensure grant reports are filed accurately and in a timely manner.
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.