Sacramento County Grand Jury Report dated June 27, 2003*

District directors on the whole do not have financial or accounting backgrounds. They rely on their audit report to ensure that their district's operation is fiscally sound. DPMWD concurs. The DPMWD Board of Directors has varying degrees of financial or accounting backgrounds. They rely on the annual audit report along with the monthly report and periodic reviews during the fiscal year.

The Grand Jury finds that an electorate, kept unaware by a district that fails to "give light" to its actions, cannot properly evaluate the performance of district personnel. These voters elect boards to oversee the operation of the district. The board in turn hires a general manager to manage the district. It is the close relationship between the board and the general manager that has potential for misuse of district funds. We find that the use of district credit cards may enable the misuse of district funds; however, it is the culture within the district that permits the abuse. District managers and board members should be aware of what is and what is not proper. Golf at district expense is not proper. Expensive restaurant meals charged to the district is not proper. Increasing the retirement benefits to a level primarily given to public safety personnel to benefit a retiring general manager is not proper. DPMWD concurs. DPMWD has policies and practices in place to prevent the potential for the misuse of funds. For example, the District does not issue credit cards, has a travel policy limiting meal allowances and provides for public review of all expenditures at the regular monthly board meeting. DPMWD retirement benefits are at a level suitable for the area and the industry.