EIN: 956000736
UEI: YVCBUGKDEUF7
Audited by: KPMG LLP
Oversight agency: 66 [Environmental Protection Agency]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 20, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 20, 2026 (20 days from today).
What is a management decision? →FAC accepted this audit on March 19, 2025 — management decision was due September 19, 2025.
FAC accepted this audit on March 21, 2024 — management decision was due September 21, 2024.
FAC accepted this audit on March 20, 2023 — management decision was due September 20, 2023.
FAC accepted this audit on March 20, 2023 — management decision was due September 20, 2023.
FAC accepted this audit on March 27, 2022 — management decision was due September 27, 2022.
FAC accepted this audit on March 7, 2021 — management decision was due September 7, 2021.
FAC accepted this audit on February 19, 2020 — management decision was due August 19, 2020.
Finding 2019-002 ? Allowable Costs ? Fleet Charges Catalog of Federal Domestic Assistance (CFDA)- 66.468 Federal program name - Capitalization Grants for Drinking Water State Revolving Funds Name of federal agency - U.S. Environmental Protection Agency ? Office of Water Federal award number - 14-310-550 Federal award year - Fiscal year ending June 30, 2019 Pass-through entity - California State Water Resources Control Board Criteria or Specific Requirement Under 2 CFR 200, direct costs charged to a grant must be necessary and reasonable for the performance of the Federal award, be consistent with rates charged for nonfederal projects, and adequately documented. For equipment usage, Section 2 CFR 200.400(d) and 2 CFR 200.403 requires adequate document to support costs charged to the Federal award. Additionally, section 200.404 specifies that a cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. The Uniform Guidance also requires that management maintain internal controls over compliance requirements to reduce the risk of an error occurring in their administration of federal awards and not being detected by management in a timely manner. Strong internal controls establish a control environment that is less susceptible to error and fraud. Condition and Context In our sample of 40 nonpayroll expenses, we noted that 4 fleet charges in our sample were not supported by adequate documentation. Management charged the FEMA fleet rate to the EPA contract versus the actual costs associated with the charges. The total amount of fleet charged to the program using the FEMA rate was $86,600 which is greater than the actual cost of $28,700. Cause and Effect The cause of these findings appears to be a lack of understanding regarding the requirement to use actual costs associated with fleet charges unless a rate is approved in the grant agreement or by the Water System?s cognizant agency. The effect of these errors resulted incorrect charges to the grant. Sampling The sample was not intended to be and was not a statistically valid sample. Questioned costs $57,900, calculated as the difference between the amount changed to the grant and the actual cost incurred by the Water System. Systemic or isolated Systemic Repeat finding No Recommendation We recommend that the Water System establish policies and procedures to provide clear guidance to those administering, accounting, and reporting for the program?s grants. These procedures should include complying with the requirements in the respective grant agreement and the criteria in 2 CFR 200. In addition, we recommend that the Water System develop a more robust management review process of charges to the grant and the resulting reporting. Views of Responsible Officials The Water System agrees with the recommendation. Corrective measures have been made to LADWP?s Fleet Management System to ensure that all pool equipment is charged to user divisions at the actual rate unless the cognizant agency has approved of an alternate rate. The Water System will continue to work closely with Fleet Services Organization and Financial Services Organization to review charges to the grant.
Show full finding ▾Hide full finding ▴Finding 2019-002 ? Allowable Costs ? Fleet Charges Catalog of Federal Domestic Assistance (CFDA)- 66.468 Federal program name - Capitalization Grants for Drinking Water State Revolving Funds Name of federal agency - U.S. Environmental Protection Agency ? Office of Water Federal award number - 14-310-550 Federal award year - Fiscal year ending June 30, 2019 Pass-through entity - California State Water Resources Control Board Criteria or Specific Requirement Under 2 CFR 200, direct costs charged to a grant must be necessary and reasonable for the performance of the Federal award, be consistent with rates charged for nonfederal projects, and adequately documented. For equipment usage, Section 2 CFR 200.400(d) and 2 CFR 200.403 requires adequate document to support costs charged to the Federal award. Additionally, section 200.404 specifies that a cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. The Uniform Guidance also requires that management maintain internal controls over compliance requirements to reduce the risk of an error occurring in their administration of federal awards and not being detected by management in a timely manner. Strong internal controls establish a control environment that is less susceptible to error and fraud. Condition and Context In our sample of 40 nonpayroll expenses, we noted that 4 fleet charges in our sample were not supported by adequate documentation. Management charged the FEMA fleet rate to the EPA contract versus the actual costs associated with the charges. The total amount of fleet charged to the program using the FEMA rate was $86,600 which is greater than the actual cost of $28,700. Cause and Effect The cause of these findings appears to be a lack of understanding regarding the requirement to use actual costs associated with fleet charges unless a rate is approved in the grant agreement or by the Water System?s cognizant agency. The effect of these errors resulted incorrect charges to the grant. Sampling The sample was not intended to be and was not a statistically valid sample. Questioned costs $57,900, calculated as the difference between the amount changed to the grant and the actual cost incurred by the Water System. Systemic or isolated Systemic Repeat finding No Recommendation We recommend that the Water System establish policies and procedures to provide clear guidance to those administering, accounting, and reporting for the program?s grants. These procedures should include complying with the requirements in the respective grant agreement and the criteria in 2 CFR 200. In addition, we recommend that the Water System develop a more robust management review process of charges to the grant and the resulting reporting. Views of Responsible Officials The Water System agrees with the recommendation. Corrective measures have been made to LADWP?s Fleet Management System to ensure that all pool equipment is charged to user divisions at the actual rate unless the cognizant agency has approved of an alternate rate. The Water System will continue to work closely with Fleet Services Organization and Financial Services Organization to review charges to the grant.
Finding 2019 002 ? Allowable Costs ? Fleet Charges To correct this finding, management has taken the steps to ensure that all pool equipment is charged to user divisions at the actual rates unless the cognizant agency has an approved alternate rate. The Water System will continue to work closely with Fleet Services Organization and Financial Services Organization to review fleet charges to the grants. Contact Person Responsible for Corrective Action: Samantha Yu Anticipated Completion Date: June 30, 2020
FAC accepted this audit on March 29, 2019 — management decision was due September 29, 2019.
GSA_MIGRATION
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2017-003
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GSA_MIGRATION
FAC accepted this audit on March 29, 2019 — management decision was due September 29, 2019.
GSA_MIGRATION
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GSA_MIGRATION
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2017-003
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FAC accepted this audit on March 29, 2018 — management decision was due September 29, 2018.
GSA_MIGRATION
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2016-004
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2016-006
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Show full finding ▾Hide full finding ▴FAC accepted this audit on March 29, 2017 — management decision was due September 29, 2017.
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2015-004
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