Projects selected for funding under the Delta Levees System Integrity Program are required to spend grant funds according to the approved project scope and budget.  DWR, or their agent, requires quarterly progress reports for all projects and conducts site visits during construction for each development project. Payment requests must include a certification by the grantee that each expense complies with requirements outlined in the work agreement. Grantees must also submit supporting documentation for each expense, with reimbursements approved only for eligible expenses pursuant to program guidelines and those contained within the approved project budget. DWR also withholds up to ten percent of each payment request to be released upon project completion. 

The financial status (expenditures and commitments) will be tracked at the project/grant level in the Department’s financial system, known as SAP.  The Department 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 the Department to also track multiple funding associated with a single project or grant.  However, expenditures of funds not controlled by the Department will be tracked by the managing agency. 

The public will be made aware of project details, costs, and status through the bond accountability website.  DWR will also report quarterly to the legislature on its expenditures for Proposition 1E projects as well as Capital Outlay projects as required by the Proposition 1E bond language and the Supplement Report of the Budget Act of 2007, respectively.

All projects funded by this program shall receive a close-out visit conducted by DWR, or their agent, at the time the project is complete and prior to releasing final grant funds. The purpose of the close-out field visit is to ensure all project components were completed according to program guidelines and the terms of work agreements, including project scope and budget. All grantees must comply with all current laws and regulations which apply to the project and submit documents summarizing total project costs and all additional funding sources.

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.