Mary Kendall, the deputy federal inspector general for the U.S. Department of Interior, today issued a 42 page report detailing the misuse of the money and the recommendations made to the state and federal agencies to resolve the issue. “The audit says that California water districts — and not federal taxpayers — were supposed to bear the costs of the $16-billion water project,“ the Associated Press reported via the LA Times. “The inspector general says federal authorities also did not fully disclose to Congress or others that it was covering much of the cost of the project’s planning.”