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- Reclamation Announces Decision Regarding OIG investigation and Questioned Costs for Rocky Boy’s North Central Project
News Release Archive
Reclamation Announces Decision Regarding OIG investigation and Questioned Costs for Rocky Boy’s North Central Project
Media Contact:
Tyler Johnson, (406) 247-7609, tjohnson@usbr.gov
For Release: July 31, 2015
BILLINGS, Mont. -- Bureau of Reclamation's Great Plains Regional Director, Michael J. Ryan, announced today Reclamation's decision for Chippewa Cree Tribe to reimburse $3,085,460 of the more than $12 million identified as questionable costs following the Office of Inspector General (OIG) investigation involving funds provided to the Tribe between 2006 and 2012 for the Rocky Boy's North Central Montana Regional Water System Project.
"Reclamation reached its decision after careful consideration of the facts in consultation with the Chippewa Cree Tribe," said Ryan.
In March 2013, Reclamation was made aware of allegations and investigations into the possible misuse of funds by some individuals associated with the Project. Reclamation and the Tribe met and jointly agreed the most prudent course would be to obtain an immediate and independent audit of Project costs. The OIG was requested to conduct the audit.
"The Tribe and Reclamation worked very hard to cooperatively get to the final number from the auditors questioned costs of over $12 million," said Chippewa Cree Vice-Chairman Ted Whitford. "This reflects well on the partnership between the Tribe and Reclamation in supporting our Project."
In addition to the decision requiring the Tribe to repay $3.1 million, Reclamation and the Tribe have jointly agreed to incorporate new terms and conditions into Annual Funding Agreements, changed annual funding advances to monthly reimbursements, and created a separate joint bank account for withdrawing funds approved for reimbursement.
"I am well aware of the impact this decision has on the Tribe," said Ryan. "Rest assured, Reclamation continues to be in full support of the Project and its efforts to provide a reliable supply of potable water to more than 28,000 Tribal and non-Tribal citizens in northcentral Montana."
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The Bureau of Reclamation is a federal agency under the U.S. Department of the Interior and is the nation's largest wholesale water supplier and second largest producer of hydroelectric power. Our facilities also provide substantial flood control, recreation opportunities, and environmental benefits. Visit our website at https://www.usbr.gov and follow us on Twitter @USBR; Facebook @bureau.of.reclamation; LinkedIn @Bureau of Reclamation; Instagram @bureau_of_reclamation; and YouTube @reclamation.
