Finding Text
Finding 2023-002 – Significant Deficiency
Award No.: 15.507, WaterSMART (Sustain and Manage America’s Resources for Tomorrow)
Federal Grantor: U.S. Department of the Interior - Bureau of Reclamation, Direct Program
Compliance Requirement: Reporting
Condition: We noted during our testing that required performance reports and Federal Financial Reports
(SF-425) were not submitted by the deadline of 30 days after period end for the reporting periods May 13,
2022 to September 30, 2022, October 1, 2022 through March 31, 2023 and April 1, 2023 through September
30, 2023. Management informed us that the performance reports and SF-425 Reports for reporting periods
ending September 30, 2022, and March 31, 2023 had not been filed when we began the audit. In addition,
the performance and SF-425 Reports for the reporting period ended September 30, 2023 were filed more
than 30 days after the end of the reporting period, which is not in compliance with the 30-day deadline
listed in program guidelines.
Criteria: 2 CFR Section 200.328 and the terms and conditions of the WaterSMART grant requires
recipients to prepare performance reports and SF-425 Reports on a semi-annual basis for the reporting
periods of October 1 through March 31 and April 1 to September 30, which are due no later than 30 days
after the end of each reporting period. There is no indication in the program guidance that reports are not
due if there is no program activity.
Cause: The Agency believed the performance reports and SF-425 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 delays in preparing
the performance report and SF-425 Report due to unfamiliarity with the reporting process.
Context: The grant began on May 13, 2022 and qualifying expenses were not incurred until the third
reporting period ending September 30, 2023 so the reports for the first two reporting periods would indicate
no progress was made and no costs were incurred. All required reports have been filed as of the date of
this report.
Effect: The Agency was not in compliance with the reporting requirements under 2 CFR 200.328 and the
terms and conditions of the award.
Recommendation: We recommend the Agency develop documented procedures to ensure grant reports
are filed in accordance with Uniform Guidance and the terms and conditions of the award.
Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned
corrective action are included in the Corrective Action Plan included at the end of the report.