Once a project is authorized, the Local Flood Control Agencies are eligible for reimbursement from DWR for LLAP grants funding levee evaluations and approved design work and construction.  Only the cost of work accomplished on the contract items and tasks in the estimate in the project agreement will be eligible for reimbursement.  No grant funds will be disbursed until a grant agreement is executed.  Under the conditions of the Program, the cost of work performed prior to execution of the project agreement may be eligible for credit against the local share of project costs.

DWR logs the claims as they are submitted and indicates the date the local agency submits the claim.  The claim date sets the priority for the claim, as they are reviewed and paid under a “first in – first out” method.  The claims are then reviewed, and DWR presents its determination of eligible costs in engineering reports.  Eligible costs are based on the Guidelines for Providing Funding and Grants to Local Public Agencies under Proposition 84 0f 2006, dated April 2008.  Local agencies also request DWR to make eligibility determinations prior to incurring costs.

Project outcome measures in the form of progress reports, recordkeeping requirements, and post-implementation reports are specified in the LLAP Guidelines.  Site inspections and record audit requirements are specified in the Special Provisions of the Grant Agreement signed by the applicant.

DWR’s Project Manager will oversee progress and ensure compliance with terms as outlined in the Guidelines. Per terms of the Grant Agreement, funding recipient shall be responsible for work and for persons or entities engaged in work, including, but not limited to, subcontractors, suppliers, and providers of services. 

The financial status (expenditures and commitments) will be tracked at the project/grant level in DWR’s financial system, called SAP.  DWR will utilize “funded program numbers” and structured “internal order cost objects” to track detailed information down to the individual projects or grants.  The use of these elements within SAP will enable DWR to also track multiple funding associated with a single project or grant.  However, expenditures of funds not controlled by DWR will be tracked by the managing agency.

Section 12832 of the California Water Code provides for a final audit by the State Controller’s Office (SCO) of the claims received and reviewed by DWR.  After DWR determines the eligible costs, ninety percent of the claim is paid to the local agency, and ten percent is withheld pending the final audit by SCO.  Once the Controller performs the final audit, any balance due to the local agencies is paid as soon as funds are available.  DWR works closely with the Controller’s Office to ensure timely audits of the claims.

DWR will continually evaluate progress by reviewing the milestones reached using performance measures which evaluate the lineal feet of levees evaluated or repaired.

Audit procedures are identified in the project review criteria, the Special Provisions of the Grant Agreement.   The Special Provisions of the Grant Agreement, Article A-5, require that the grantee hire a certified public accountant to perform an independent final audit of the records.

The Natural Resources Agency will obtain an independent audit of the bonds through the annual Department of Finance, Office of State Audits and Evaluations (OSAE) audit of bond expenditures.