U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
August 1, 2007
Catalyst for Improving the Environment
Why We Did This Review
The U.S. Environmental
Protection Agency (EPA)
Office of Inspector General
(OIG) conducted a review of
earmarked grants known as
Special Appropriation Act
Projects issued to State and
tribal Governments. The City
of Huron, South Dakota, was
selected for a site review.
The City of Huron received an
EPA Special Appropriation
Act Project grant,
XP98838901. The purpose of
the grant was to provide
Federal assistance of
$3,871,500 for the upgrade of
a water treatment plant. The
City of Huron is required to
provide local matching funds
equal to 55 percent of the
EPA-awarded funds.
Excess Federal Funds Drawn on
EPA Grant No. XP98838901 Awarded to the
City of Huron, South Dakota
What We Found
The City of Huron did not reduce the total grant costs by $947,586 for amounts
received from local water agencies. These local agencies provided funds to the
City of Huron to offset project costs. Under Office of Management and Budget
Circular A-87, Attachment A, the City of Huron needs to reduce the total project
costs by the reimbursements received. The reduction in project costs resulted in
the City of Huron having drawn $68,203 of excess Federal funds. The City of
Huron is also anticipating receiving additional reimbursements upon completion
of the project, which should result in the repayment of additional funds.
What We Recommend
We recommend that the EPA Region 8 Regional Administrator require the City of
Huron to:
1.	Repay $68,203 for excess Federal funds drawn.
2.	Advise EPA of all future reimbursements.
3.	Repay 55 percent of all future reimbursements.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
To view the full report,
click on the following link:
20070801 -2007-2-00030.pdf