KLAMATH WATERSHED PARTNERSHIPNon-Profit

to align with the requirements of 2 CFR 200.318 and are expecting to be a low-risk auditee during the 2025 fiscal year.

report consistently in the future.

Recommendation: Klamath Watershed Partnership updated their policy and would need to implement throughout the entire year.

Recommendation: Klamath Watershed Partnership should provide a copy of the instructions for SF-425 to each employee and require each employee to determine which information is required by the SF-425 instructions or the grant agreement and then complete the forms with only the required information to avoid potential errors.

Finding 2022-01: 15.631 Partners for Fish and Wildlife Criteria: 2 CFR 200.318 requires entities to comply with procurement procedures within the section. Condition and Context: For the year ended December 31, 2022, Klamath Watershed Partnership?s procurement policy didn?t align with the requirements described in 2 CFR 200.318 through 2 CFR 200.327. Cause: Klamath Watershed Partnership incidentally thought the procurements for the federal funds were being performed by the oversight agency awarding the funds and their own internal procurement procedures would apply to the other purchase of goods and services. Effect or Potential Effect: The procurement procedures were not performed by Klamath Watershed Partnership. This could have resulted in paying more than ideal or resulted in contracts provided to favored vendors without an opportunity for proposals of other vendors. Questioned Costs: None Context: The procurement policy implemented did not align with the requirement of 2 CFR 200.318. This created a systemic failure to comply with 2 CFR 200.318 for all purchases that would be subject to the procurement policy. Recommendation: Klamath Watershed Partnership should update their procurement policy to align with 2 CFR 200.318 through 2 CFR 200.327. This policy should be implemented immediately after the update is approved. Views of responsible officials and planned corrective actions: Management agrees with the finding and have updated their procurement policy to align with the requirements of 2 CFR 200.318.

Finding 2022-02: 15.631 Partners for Fish and Wildlife Criteria: 2 CFR 200.328 requires entities to comply with financial reporting as communicated in the federal award terms. Condition and Context: For the year ended December 31, 2022, Klamath Watershed Partnership?s financial reporting were reported on form SF-425 for the multiple federal awards under the Partners for Fish and Wildlife program. 4 reports were identified with inaccuracies. Cause: Klamath Watershed Partnership incidentally reported amounts on specific lines that weren?t aligned with the amounts supported through underlying records. Effect or Potential Effect: The reports filed reported erroneous amounts for multiple federal awards. Questioned Costs: None Context: The reports were prepared accurately in most of the SF-425 reports, but there were 4 reports that were not accurate. These 4 reports varied in the areas of the discrepancies. This suggests that the issue is not isolated or systemic, but a combination of both. Recommendation: Klamath Watershed Partnership should attach the report or other information used to prepare the reports for the use of the employee responsible for reviewing the report prior to filing. Also, management should amend the reports identified. Views of responsible officials and planned corrective actions: Management agrees with the finding and will perform a review with supporting information in future filings. Also, management will amend the identified reports.