Audit of Bureau of Land Management Cooperative Agreement No. L10AC20002 With The Piney Woods School

We audited cooperative agreement no. L10AC20002 between the Bureau of Land Management (BLM) and the Piney Woods School (PWS) to determine whether BLM owed PWS Federal funds at the close of the cooperative agreement. BLM entered into the 5-year agreement, totaling $524,478, with PWS on March 30, 2010, for PWS to support BLM’s Wild Horse and Burro Program.

 

We questioned $524,478 in unsupported costs because PWS’ accounting system and lack of internal controls made it impossible to determine the allowability, allocability, and reasonableness of PWS’ claimed costs. While PWS did provide value during the agreement, we found the absence of these controls made it impossible to determine the allowable reimbursable expenses owed to PWS. We identified five issues related to PWS’ claimed costs, the amount owed on the agreement, PWS’ compliance with the agreement terms and conditions, and BLM’s compliance with the agreement terms and conditions. 

 

We made four recommendations to BLM to resolve these issues. Based on BLM’s response to our report, we consider three recommendations resolved but not implemented, and one recommendation resolved and implemented.