Audit work included claims totaling approximately $44 million on the 128 grants that were open during SFYs 2006 and 2007 (see Appendix 1). We report only on those conditions that existed during this audit period. We performed our audit at Division headquarters in Denver, CO, and visited 6 service centers, 17 State Wildlife Areas (SWAs), 3 fish hatcheries, 1 marina, and 2 State Parks (see Appendix 2). We performed this audit to supplement, not replace, the audits required by the Single Audit Act Amendments of 1996 and by Office of Management and Budget Circular A-133.