Audit of Cooperative Agreement No. R95AV60020 Between the Bureau of Reclamation and the Lower Brule Sioux Tribe

We audited the Lower Brule Sioux Tribe's (LBST) interim incurred costs on Cooperative Agreement No. R95AV60020 with the Bureau of Reclamation (USBR). The agreement was issued by USBR for operation, maintenance, and administrative activities associated with the Lower Brule Rural Water System, which serves tribal and nontribal customers in southwestern South Dakota.

 

Our audit identified a total of $1,440,748 in questioned costs, as well as the need for increased oversight by USBR. We offer six recommendations to help USBR resolve the questioned costs and improve its operations with LBST. USBR agreed with all six recommendations and will begin negotiations with LBST to recoup the unallowable costs.