We are conducting an audit of the Bureau of Reclamation’s (USBR’s) cooperative agreement with the Panoche Drainage District (PDD) to operate and maintain the San Luis Demonstration Treatment Plant located in the San Luis Unit of California’s Central Valley Project. During our audit, we learned that the USBR is currently considering PDD’s request for a reallocation of the cooperative agreement’s budget to task areas for which we have questioned costs and that the PDD may also request a funding increase for this agreement.
We have concerns about the proposed budget reallocation or any funding increase to this cooperative agreement, as we have identified questionable costs and found USBR’s administration of the agreement to be inadequate. We issued a management advisory so that the USBR could promptly address our concerns.