U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
09-2-0078
January 12, 2009
Catalyst for Improving the Environment
Why We Did This Review
The U.S. Environmental
I Protection Agency (EPA)
Office of Inspector General is
reviewing Special
Appropriation Act Project
grants to identify issues
warranting further analysis.
We selected the City of Rupert
I (grantee) for one of these
reviews.
Background
In 1998, the City of Rupert
received an EPA Special
Appropriation Act Project
grant, XP98011401. The
purpose of the grant was to
I provide Federal assistance of
$2 million to construct a water
supply system. The City of
Rupert was required to
provide local matching funds
equal to 45 percent of the
EPA-awarded funds.
For further information,
contact our Office of
Congressional, Public Affairs
and Management at
(202)566-2391.
To view the full report,
click on the following link:
www.epa.qov/oiq/reports/2009/
20090112-09-2-0078.pdf
Costs Claimed under EPA Grant XP98011401
Awarded to the City of Rupert, Idaho
What We Found
The grantee did not meet the Title 40 Code of Federal Regulations Part 31
requirements for financial management. In particular, the grantee:
• Claimed unsupported costs,
• Claimed unallowable pre-award costs,
• Claimed unallowable interest costs,
• Claimed unallowable equipment costs, and
• Reported cumulative total project costs that were not supported by
accounting records.
Because of the above issues, EPA needs to recover $63,256 of the $423,106 in
costs questioned under the grant.
What We Recommend
We recommend that EPA Region 10's Regional Administrator disallow $423,106
and recover $63,256 in costs questioned under Grant XP98011401.
With the exception of pre-award costs, the grantee concurred with the findings and
recommendations in the discussion draft.
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