GREAT BASIN LAND AND WATER
Financial Statements and
Supplemental Information
December 31, 2021
GREAT BASIN LAND AND WATER
TABLE OF CONTENTS
DECEMBER 31, 2021
INDEPENDENT AUDITORʹS REPORT
1
FINANCIAL STATEMENTS
Statement of Financial Position
4
Statement of Activities
5
Statement of Functional Expenses
6
Statement of Cash Flows
7
Notes to Financial Statements
8
SUPPLEMENTAL INFORMATION
Schedule of Expenditures of Federal Awards
14
Notes to the Schedule of Expenditures of Federal Awards
15
COMPLIANCE
Independent Auditorʹs Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
16
Independent Auditorʹs Report on Compliance for Each Major Program and on
Internal Control over Compliance in Accordance with the Uniform Guidance
18
Schedule of Findings and Questioned Costs
21
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of
Great Basin Land and Water
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Great Basin Land and Water (a nonprofit organization),
which comprise the statement of financial position as of December 31, 2021, and the related statements
of activities, functional expenses, and cash flows for the years then ended and the related notes to the
financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of Great Basin Land and Water as of December 31, 2021, and the changes in its net
assets and its cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of Great Basin Land and Water
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audits. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Responsibility of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
110 Country Estates Circle Suite 2 | Reno NV 89511 | Ph: 775.624.9108 | Fax 888.506.8025 | schettlermacy.com
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about Great Basin Land
and Water’s ability to continue as a going concern for one year after the date that the financial
statements are available to be issued.
Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Governmental Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with GAAS and Governmental Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Great Basin Land and Water’s internal control. Accordingly, no
such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about Great Basin Land and Water’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control–related matters that we identified during the audit.
2
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The
schedules of functional expenses are presented for purposes of additional analysis and are not a required
part of the financial statements. The accompanying Schedule of Expenditures of Federal Awards is
presented for purposes of additional analysis as required by the audit requirements of Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance), and is not a required part of the financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly
stated in all material respects in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 16, 2022 on
our consideration of Great Basin Land and Water’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of Great Basin Land and Water’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering Great Basin Land and Water’s internal control over financial reporting and compliance.
Reno, Nevada
June 16, 2022
3
GREAT BASIN LAND AND WATER
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investments
Grants receivable
Prepaid expenses
$
Total Current Assets
212,007
300,000
84,885
2,760
599,652
PROPERTY AND EQUIPMENT, net
‐
$
599,652
$
25,308
12,894
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued expenses
Total Current Liabilities
38,202
NET ASSETS
Without donor restrictions
With donor restrictions
561,450
‐
Total Net Assets
561,450
$
See accompanying notes.
4
599,652
GREAT BASIN LAND AND WATER
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2021
Support and Revenues
Government grants
Interest income
$
755,158
990
Total Support and Revenues
756,148
Expenses
Program services
General and administrative
736,788
40,010
Total Expenses
776,798
Change in Net Assets Without Donor Restrictions
(20,650)
Net Asssets Without Donor Restrictions, Beginning of Year
Net Asssets Without Donor Restrictions, End of Year
See accompanying notes.
5
582,100
$
561,450
GREAT BASIN LAND AND WATER
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED DECEMBER 31, 2021
Program
Services
Salaries
Payroll taxes and employee benefits
$
Total Salaries and Related Expenses
Advertising
Insurance
Office supplies and expense
Postage and delivery
Printing and reproduction
Professional services
Rent
Taxes and licenses
Telephone and internet
Travel
Water rights
Water rights mapping
$
106,125
9,657
General
and
Administrative
$
25,711
873
Total
Expenses
$
131,836
10,530
115,782
26,584
142,366
‐
463
78
370
220
35,354
6,742
280
2,182
583
570,422
4,312
560
3,488
1,614
209
28
1,976
1,190
1,849
2,182
300
30
‐
560
3,951
1,692
579
248
37,330
7,932
2,129
4,364
883
570,452
4,312
736,788
See accompanying notes.
6
$
40,010
$
776,798
GREAT BASIN LAND AND WATER
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets without donor restrictions
Adjustments to reconcile change in net assets to
net cash provided (used) by operating activities:
Changes in:
Grants receivable
Prepaid expenses
Accounts payable
Accrued expenses
$
(20,650)
(25,176)
(2,093)
5,634
2,963
Net cash provided (used) by operating activities
(39,322)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on sale of investments
Purchase of investments
641,729
(519,951)
Net cash provided (used) by investing activities
121,778
NET CHANGE IN CASH
82,456
CASH AND CASH EQUIVALENTS, Beginning of Year
CASH AND CASH EQUIVALENTS, End of Year
See accompanying notes.
7
129,551
$
212,007
GREAT BASIN LAND AND WATER
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Great Basin Land and Water (the Organization) was established to acquire on behalf of the
general public, important water rights to be dedicated, managed, and used to augment instream
flows, improve water quality, maintain and preserve aquatic and riparian habitat, enhance
habitat conditions for fish and wildlife, and promote aesthetic and recreational values, as well as
to purchase lands devoted to the preservation of native plants and animals, biotic communities,
historic resources, working landscapes, recreation and scenic beauty.
Basis of Accounting
The Organization prepares its financial statements in accordance with accounting principles
generally accepted in the United States of America using the accrual method of accounting,
which recognizes revenue when earned and expenses as incurred.
Cash and Cash Equivalents
For purposes of financial reporting, the Organization considers money market funds and
certificates of deposit with original maturities of three months or less to be cash equivalents.
Investments
Investments consist of certificates of deposit held in brokerage accounts with readily
determinable fair values which are reported at their fair value with realized and unrealized gains
and losses included as net investment income in the accompanying statement of activities.
Grant Receivables
Support received under grants and contracts is recorded when the related amounts are due from
grantor agencies. The grants receivable represents amounts due on reimbursable grants. The
Organization does not anticipate any collection losses with respect to the receivable balances.
Therefore, management has deemed the entire amount to be fully collectible and no allowance
for doubtful accounts is reflected in the accompanying financial statements.
8
GREAT BASIN LAND AND WATER
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021
Concentration of Credit Risk
The Organization maintains several cash accounts with two commercial banks.
The
Organization’s are insured up to $250,000 through the Federal Deposit Insurance Corporation
(FDIC). As of December 31, 2021, the Organization did not exceed the insured limit.
Property and Equipment
The Organization records property and equipment at cost or at the estimated fair value at the
date of the gift, if donated. Such donations are reported as unrestricted support unless specific
donor stipulations specify how the donated assets must be used.
The Organization capitalizes all expenditures for property and equipment in excess of $500.
Property and equipment are depreciated over their estimated useful lives, currently three years
for furniture and equipment, using the double declining method.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain reported
amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the
reported revenues and expenses. Accordingly, actual results could differ from those estimates.
Net Assets
Net assets, revenues, gains, and losses are classified based on the existence or absence of donor‐
imposed restrictions. Accordingly, net assets and changes therein are classified and reported as
follows:
Net Assets Without Donor Restrictions – Net assets available for use in general operations and not
subject to donor restrictions.
Net Assets With Donor Restrictions – Net assets subject to donor‐imposed restrictions. Some
donor‐imposed restrictions are temporary in nature, such as those that will be met by the passage
of time or other events specified by the donor. Other donor‐imposed restrictions are perpetual in
nature, where the donor stipulates that resources be maintained in perpetuity. Donor‐imposed
restrictions are released when a restriction expires, that is, when the stipulated time has elapsed,
when the stipulated purpose for which the resource was restricted has been fulfilled, or both.
9
GREAT BASIN LAND AND WATER
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021
Support and Revenues
The Organizationʹs revenue is derived primarily from federal and third‐party contracts and
grants. Under those contracts and grants, the Organization is reimbursed for substantially
all of its expenditures. The Organization recognizes contract and grant revenue when the
related expenditures are incurred.
The Organization reports gifts of cash and other assets as restricted support if they are
received with donor stipulations that limit the use of the donated assets. When a donor
restriction expires, that is, when a stipulated time restriction ends or purpose restriction is
accomplished, net assets with donor restrictions are reclassified to net assets without donor
restrictions and reported in the Statement of Activities as net assets released from
restrictions.
The Organization reports gifts as unrestricted support unless explicit donor stipulations
specify how the donated assets must be used. Gifts of long‐lived assets with explicit
restrictions that specify how the assets are to be used and gifts of cash or other assets that
must be used to acquire long‐lived assets are reported as restricted support. Absent explicit
donor stipulations about how long those long‐lived assets must be maintained, the
Organization reports expirations of donor restrictions when the donated or acquired long‐
lived assets are placed in service.
Advertising
Advertising costs are expensed as incurred. Advertising expenses were $560 for the year ended
December 31, 2021.
Income Taxes
The Organization is exempt from federal income taxes under Internal Revenue Code Section
501(c)(3). Accordingly, no provision for federal income taxes has been made. It is the
Organizationʹs tax position that it has not engaged in activities that would jeopardize its
exempt status nor has it engaged in activities that would result in unrelated business income
tax.
10
GREAT BASIN LAND AND WATER
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021
Management’s Review
Management has evaluated subsequent events through June 16, 2022, which represents the date
the financial statements were available to be issued. Subsequent events after that date have not
been evaluated.
NOTE 2 – LIQUIDITY AND AVAILABILITY
Financial assets available for general expenditure, that is, without donor or other restrictions
limiting their use, within one year of the balance sheet date, comprise the following:
Cash and cash equivalents
Investments
$
Grants receivable
212,007
300,000
84,885
Financial assets available to meet cash needs for general
expenditures within one year
$
596,892
The Organization has a policy to manage its liquidity by operating within a prudent range of
financial stability, maintaining adequate liquidity to fund near‐term operations, and maintaining
sufficient reserves to provide reasonable assurance that long‐term obligations will be met. As
part of the Organization’s liquidity management plan, it invests cash in excess of short‐term
requirements in certificates of deposit and money market accounts.
NOTE 3 – INVESTMENTS
Generally accepted accounting principles requires disclosures regarding fair value
measurements, which establish a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1
inputs consist of unadjusted quoted prices in active markets for identical assets and have the
highest priority, Level 2 inputs consist of observable inputs other than quoted prices for identical
assets, and Level 3 inputs have the lowest priority. The Organization has no investments valued
using Level 1 or 3 inputs for the year ended December 31, 2021.
Unless otherwise indicated, fair values of all reported assets and liabilities, which represent
financial instruments (none of which are held for trading purposes), approximate the carrying
values of such amounts.
11
GREAT BASIN LAND AND WATER
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021
The fair value of the Level 2 certificates of deposit held at December 31, 2021 was $300,000.
Interest income related to the investment in certificates of deposit recorded for the year ended
December 31, 2021 was $990.
NOTE 4 – PROPERTY AND EQUIPMENT
Property and equipment consists of the following as of December 31, 2021:
Equipment
$
Less: Accumulated depreciation
4,329
(4,329)
$
‐
Depreciation expense was ‐$0‐ for the year ended December 31, 2021.
NOTE 5 – OPERATING LEASE
The Organization leases office space on a month‐to‐month basis. Total rent expense was $6,742
for the year ended December 31, 2021.
NOTE 6 – FUNCTIONALIZED EXPENSES
The costs of providing the various programs and other activities have been summarized on a
functional basis in the Statement of Functional Expenses and the Statement of Activities.
Accordingly, certain costs have been allocated among the program and supporting services
benefited.
NOTE 7 – COMMITMENTS AND CONTINGENCIES
The Organization receives a substantial amount of its support from federal government agencies.
A significant reduction in the level of this support, if this were to occur, may have an effect on the
Organization’s programs and activities.
12
GREAT BASIN LAND AND WATER
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021
Grant and contract awards require the fulfillment of certain conditions as set forth in the
agreements. Failure to fulfill these conditions could result in the return of the funds to the
grantors; however, the Organization deems the likelihood of such a contingency to be remote.
13
SUPPLEMENTAL INFORMATION
GREAT BASIN LAND AND WATER
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED DECEMBER 31, 2021
FEDERAL
CFDA
NUMBER
FEDERAL GRANTOR/
PROGRAM TITLE
PASS‐
THROUGH
GRANTORʹS
NUMBER
AMOUNT
Department of the Interior
Bureau of Reclamation ‐ Passed through National Fish
and Wildlife Foundation
15.508
Providing Water to At‐Risk Natural Desert Terminal Lakes
Acquisition and Conservation Activities
to Benefit Pyramid and Summit Lake (NV)
Summit Lake Region Protection Program (NV)
TOTAL EXPENDITURES OF FEDERAL AWARDS
See accompanying notes.
14
R10AP20007
$
FC.A036
731,032
24,126
$
755,158
GREAT BASIN LAND AND WATER
NOTES TO THE SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS
YEAR ENDED DECEMBER 31, 2021
NOTE 1 – BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal
award activity of Great Basin Land and Water under programs of the federal government for the
year ended December 31, 2021. The information in this schedule is presented in accordance with
the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operations of Great Basin Land and
Water, it is not intended to and does not present the financial position, changes in net assets, or
cash flows of Great Basin Land and Water.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Great Basin Land and Water did not receive Federal Financial Assistance in the form of loans or
loan guarantees, or in the form of endowment funds.
The schedule does not include matching expenditures.
NOTE 3 – INDIRECT COSTS
Great Basin Land and Water has elected to use the 10% de minimis indirect cost rate as allowed
under the Uniform Guidance.
15
COMPLIANCE
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Board of Directors of
Great Basin Land and Water
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to the financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of Great Basin Land and
Water (a nonprofit organization) which comprise the statement of financial position as of December 31, 2021,
and the related statements of activities, and cash flows for the year then ended, and the related notes to the
financial statements, and have issued our report thereon dated June 16, 2022.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Organization’s
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal
control. Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
110 Country Estates Circle Suite 2 | Reno NV 89511 | Ph: 775.624.9108 | Fax 888.506.8025 | schettlermacy.com
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Organization’s financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
organization’s internal control or on compliance. This report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the Organization’s internal control
and compliance. Accordingly, this communication is not suitable for any other purpose.
Reno, Nevada
June 16, 2022
17
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
IN ACCORDANCE WITH THE UNIFORM GUIDANCE
To the Board of Directors of
Great Basin Land and Water
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Great Basin Land and Water’s (a nonprofit organization) compliance with the types of
compliance requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of the Organization’s major federal programs for the year ended December 31,
2021. The Organization’s major federal programs are identified in the summary of auditor’s results
section of the accompanying schedule of findings and questioned costs.
In our opinion, the Organization complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended December 31, 2021.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards);
and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our
responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Great Basin Land and Water and to meet our other ethical
responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of Great Basin
Land and Water’s compliance with the compliance requirements referred to above.
Responsibility of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to its
federal programs.
110 Country Estates Circle Suite 2 | Reno NV 89511 | Ph: 775.624.9108 | Fax 888.506.8025 | schettlermacy.com
Auditor’s Responsibility for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on Great Basin Land and Water’s compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that, individually or
in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance
about Great Basin Land and Water’s compliance with the requirements of each major federal program as a
whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:



Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding Great Basin Land and Water’s compliance with
the compliance requirements referred to above and performing such other procedures as we
considered necessary in the circumstances.
Obtain an understanding of Great Basin Land and Water’s internal control over compliance
relevant to the audit in order to design audit procedures that are appropriate in the
circumstances and to test and report on internal control over compliance in accordance with the
Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of
Great Basin Land and Water’s internal control over compliance. Accordingly, no such opinion
is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over compliance
is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a
19
material weakness in internal control over compliance, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Reno, Nevada
June 16, 2022
20
GREAT BASIN LAND AND WATER
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2021
A. SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of Auditor’s Report issued:
Unmodified
Internal Control over Financial Reporting
Material weaknesses identified:
No
Other significant deficiencies identified:
None reported
Noncompliance material to the financial statements noted:
No
Federal Awards
Internal Control over Major Programs
Material weaknesses identified:
No
Other significant deficiencies identified:
None reported
Type of Auditor’s Report issued on compliance for major programs:
Any audit findings that are required to be reported in accordance
with 2 CFR section 200.516(a):
Unmodified
No
Major Programs
The major program for the year ended December 31, 2021 was:
CFDA Number
15.508
Name of Federal Program or Cluster
Providing Water to At‐Risk Natural Desert Terminal Lakes
The threshold for distinguishing between type A and B programs was $750,000.
Great Basin Land and Water was not determined to be a low‐risk auditee.
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GREAT BASIN LAND AND WATER
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 2021
B. FINDINGS – FINANCIAL STATEMENT AUDIT
None.
C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS
AUDIT
None.
D. SUMMARY OF PRIOR AUDIT FINDINGS
There were no prior year audit findings.
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