📋
Extraído del Informe Consolidado
Esta investigación fue publicada originalmente como parte de un informe consolidado más amplio que contiene múltiples investigaciones. Consulte el PDF consolidado para ver el documento completo.
Score: +4
(4/0/0)
Sacramento County Grand Jury
• 2002-2003
Recommendations for Improving Public Water Districts’ Accountability
2 pages
⚠️ Aviso de traducción: Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Recommendations 1
-
R1Page 37The Elk Grove Unified School District should: a. develop formal policies and procedures for the purchase of school site property that protect financial interests of the taxpayers and eliminate the appearance of favoritism to any landowner, land developer or real estate agent; b. publish in a newspaper of general record an official notice of any decision by the District to establish a new school or seek a new site location. An offical notice should also be delivered to the local Board of Realtors; c. direct staff to use all available resources for the selection of property for school construction including physical inspection of properties for sale within the area of interest as well as Multiple Listing and newspaper ads.
Agency Responses 3
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.
▶
Carmichael Water District
September 30, 2012
•
5 pages
• 12 responses
•
Score: +2
(+2, 0, 0)
View Details ▾
12 responses to findings and recommendations
F1
District directors on the whole do not have financial or accounting backgrounds. They rely on their audit reports to ensure that their district’s operation is fiscally sound.
Response: Agree
Score: +1
Carmichael Water District's Board of Directors have a varying degree of financial or accounting backgrounds. Carmichael Water District concurs that the directors rely on their audit reports along with the monthly, quarterly and annual review of the financials and budget process that takes place over a six month process.
Recommendation #1a:
The district should provide to auditors all district policies and procedures before an audit is performed. Auditors should verify that all disbursements made during the year comply with the district's procedures. The audit should include a random sampling ...
R1a
The district should provide to auditors all district policies and procedures before an audit is performed. Auditors should verify that all disbursements made during the year comply with the district’s procedures. The audit should include a random sampling of travel expense reports, including credit card usage.
Response: Unknown
Score: 0
Carmichael Water District concurs. It has been the practice of the District to provide the auditor with polices and procedures and any changes that may have occurred during the audit
cycle. The District audits are conducted by an independent auditor using audit standards. The independent auditor chooses a sampling of all District expenses. Carmichael Water District does not have District credit cards and all travel expenses are included in the agenda in the Director's monthly activity report.
Recommendation #1b:
The Sacramento County Director of Finance should schedule regular, selective re...
R1b
The Sacramento County Director of Finance should schedule regular, selective reviews of district audit reports for completeness and financial impact on ratepayers, and report any anomalies to the respective water district board of directors.
Response: Unknown
Score: 0
Carmichael Water District concurs. However, who will fund this additional review and at what cost?
Recommendation #1c:
The California State Government Code Section 2609 should be amended to eliminate Section 2609(f) providing for audits to be performed less frequently than once a year. The code should require all districts to perform annual audits. Response: Carmichael Water District concurs. Carmichael has always conducted annual audits performed by an independent auditor.
Recommendation #1d:
The California State Legislature should enact a statue requiring the State Controller to independ...
R1c
The California State Government Code Section 2609 should be amended to eliminate Section 2609(f) providing for audits to be performed less frequently than once a year. The code should require all districts to perform annual audits.
Response: Unknown
Score: 0
Carmichael Water District concurs. Carmichael has always conducted annual audits performed by an independent auditor.
Recommendation #1d:
The California State Legislature should enact a statue requiring the State Controller to independently verify accuracy and completeness of districts audits. Response: Carmichael Water District concurs. However, who will fund this additional review and at what cost?
Recommendation #2:
Auditors should confirm water districts compliance with IRS rules, that all income is being reported, that boards actively oversee payments to management, and that all finan...
R1d
The California State Legislature should enact a statute requiring the State Controller to independently verify accuracy and completeness of district audits.
Response: Unknown
Score: 0
Carmichael Water District concurs. However, who will fund this additional review and at what cost?
Recommendation #2:
Auditors should confirm water districts compliance with IRS rules, that all income is being reported, that boards actively oversee payments to management, and that all financial records are maintained for at least five years. Response: Carmichael Water District concurs. It is Carmichael Water District's practice to report all income through payroll, the Board of Directors oversee all District payments and the District's financial records are maintained according to the Distri...
F2
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 47 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 ...
Response: Agree
Score: +1
:
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 m...
R2
Auditors should confirm water districts’ compliance with IRS rules, that all income is being reported, that boards actively oversee payments to management, and that all financial records are maintained for at least five years.
Response: Unknown
Score: 0
Carmichael Water District concurs. It is Carmichael Water District's practice to report all income through payroll, the Board of Directors oversee all District payments and the District's financial records are maintained according to the District's Records Retention policy which is at least five years.
Recommendation #3:
In an effort to obtain a thorough and professional annual audit, auditors should be changed every three years. Response: Carmichael Water District's present practice is to go out for Request for Proposal (RFP) every 3-5 years for Independent Auditor Services. There has been ...
R2b
Expenses submitted for reimbursement or charges on district credit cards that exceed California State per diem allowances or that do not fall within permitted district expense policies should be disallowed, published on the district’s Web site and discussed at the next board meeting.
Response: Unknown
Score: 0
Carmichael Water District concurs. The District does not use credit cards, expense reimbursements are included in the monthly agenda under monthly activity report. Within six months, the District will publish the monthly activity report on its Web site. Reimbursements are audited by accounting staff in accordance with the District reimbursement policy. If reimbursement requests do not meet the standards of the policy the reimbursement is denied.
FINDING #3:
Some written practices and policies, which vary from district to district, may be outdated. Response: Carmichael Water District updates ...
F3
Some written practices and policies, which vary from district to district, may be outdated.
Response: Unknown
Score: 0
Carmichael Water District updates its policies on an as needed basis.
Recommendation #3:
Each district general manager and board of directors should review and update bi-annually practices and policies. Response: Carmichael Water District reviews and updates policies as needed to stay current with existing laws, legislation, and/or board policy.
Carmichael Water District has been run efficiently for many years. The Board of Directors strives for continued improvement in every aspect of the District's operation. The employees of the District are hard working individuals who are dedicated to ...
R3
In an effort to obtain a thorough and professional annual audit, auditors should be changed every three years.
Response: Unknown
Score: 0
Carmichael Water District's present practice is to go out for Request for Proposal (RFP) every 3-5 years for Independent Auditor Services. There has been recently adopted federal legislation (Sarbanes-Oxley Act) the SEC in Section 203(j), Section 10A of Securities Act of 1934, requiring only engagement partner of the Independent Accounting Firm to be changed every five years. Carmichael Water District recommends adoption of a similar standard for California.
Recommendation #4:
To increase public awareness of district activities and to provide easy access to this information, public water dis...
R4
To increase public awareness of district activities and to provide easy access to this information, public water districts should establish and maintain a Web site with links to their audit report, district travel policies and travel expenses.
Response: Unknown
Score: 0
Carmichael Water District concurs: within the next six months the District will have this information posted on its Web site. In addition, travel expenses are included in the agenda each month as a part of the District's monthly activity report.
Recommendation #5:
Notices of public hearings for rate increase should be clear and concise enabling customers to understand easily the reasons and justifications for such increases. Response: Carmichael Water District concurs and has been providing this information for several years.
FINDING #2:
The Grand Jury finds that an electorate, kept unawar...
R5
Notices of public hearings for rate increases should be clear and concise enabling customers to understand easily the reasons and justifications for such increases.
Response: Unknown
Score: 0
Carmichael Water District concurs and has been providing this information for several years.
FINDING #2:
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 mis...
▶
Fair Oaks Water District
September 25, 2003
•
11 pages
• 5 responses
•
Score: +1
(+1, 0, 0)
View Details ▾
5 responses to findings and recommendations
F1
District directors on the whole do not have financial or accounting backgrounds. They rely on their audit reports to ensure that their district’s operation is fiscally sound.
Response: Agree
Score: +1
This statement is generally true, but may be too broadly stated. As exceptions to this statement, FOWD has one board member with finance and accounting education and experience who understands detailed and technical financial issues very well. Further, several FOWD board members are employed at the executive level and thus comprehend fiscal matters quite well. Additionally, there are numerous practices FOWD employs to educate its board on financial matters. The district provides monthly financial statements to its board members for review purposes that provide opportunities for the board to as...
R1b
The Sacramento County Director of Finance should schedule regular, selective reviews of district audit reports for completeness and financial impact on ratepayers, and report any anomalies to the respective water district board of directors.
Response: Unknown
Score: 0
FOWD concurs with this recommendation with the following caveats: 1. FOWD welcomes a review of the Sacramento County Director of Finance of the district audit report for completeness. FOWD currently submits its audited financial statements to the County of Sacramento Department of Finance, Auditor controller on an annual basis. The most recent annual financial statements were submitted on June 19, 2003 for the year ending December 31, 2002. 2. In January 2003, FOWD was recognized by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual ...
R1c
The California State Government Code Section 2609 should be amended to eliminate Section 2609(f) providing for audits to be performed less frequently than once a year. The code should require all districts to perform annual audits.
Response: Unknown
Score: 0
We concur with this recommendation as we conduct annual audits routinely. Recommendation #1d. The California State Legislature should enact a statute requiring the State Controller to independently verify accuracy and completeness of district audits. Response: FOWD does not concur with this recommendation: 1. FOWD welcomes the State Controller's involvement in independently verifying the accuracy and completeness of FOWD's audit. However, we doubt the State Controller has the resources or interest in performing this service for each special district and political jurisdiction in the state. Thi...
R1d
The California State Legislature should enact a statute requiring the State Controller to independently verify accuracy and completeness of district audits.
Response: Unknown
Score: 0
FOWD does not concur with this recommendation: 1. FOWD welcomes the State Controller's involvement in independently verifying the accuracy and completeness of FOWD's audit. However, we doubt the State Controller has the resources or interest in performing this service for each special district and political jurisdiction in the state. This well intentioned recommendation is simply not
practical. FOWD currently submits financial information in the State Controllers' report, including the audit report and a special districts financial transactions report as required by the State Controllers' off...
R2b
Expenses submitted for reimbursement or charges on district credit cards that exceed California State per diem allowances or that do not fall within permitted district expense policies should be disallowed, published on the district’s Web site and discussed at the next board meeting.
Response: Unknown
Score: 0
We concur with this recommendation with caveats:
1. As previously stated, FOWD is currently in a committee process to review and recommend changes to our travel and expense policy. We are committed to customer input on 'reasonableness' in this area. As part of its current travel and expense policy, the district has used Federal per diem allowances published by the Internal Revenue Service. These rates are more reflective of the true current costs of restaurant meals while traveling. Expenses that do not fall within permitted district expense policies have historically 2. and are currently dis...
▶
Florin County Water District
September 30, 2012
•
2 pages
• 12 responses
•
Score: +1
(+1, 0, 0)
View Details ▾
12 responses to findings and recommendations
F1
District directors on the whole do not have financial or accounting backgrounds. They rely on their audit reports to ensure that their district’s operation is fiscally sound.
Response: Unknown
Score: 0
Noted. All District policies are available to the auditor as described in the management representation letter.
R1a
The district should provide to auditors all district policies and procedures before an audit is performed. Auditors should verify that all disbursements made during the year comply with the district’s procedures. The audit should include a random sampling of travel expense reports, including credit card usage.
Response: Unknown
Score: 0
The District's auditor submits the annual audit report to the heard of the internal audit function for Sacramento County.
R1b
The Sacramento County Director of Finance should schedule regular, selective reviews of district audit reports for completeness and financial impact on ratepayers, and report any anomalies to the respective water district board of directors.
Response: Unknown
Score: 0
Noted. The District currently performs all required audits.
R1c
The California State Government Code Section 2609 should be amended to eliminate Section 2609(f) providing for audits to be performed less frequently than once a year. The code should require all districts to perform annual audits.
Response: Unknown
Scheduled: within 12 months
Score: 0
Noted. Per Government Code Section 53891, the District completes an annual financial transaction report in a forma acceptable to the State based on the audited financial numbers. Per Government Code Section 26909, a copy of the independent audit is filed with the Controller within 12 months after the close of the fiscal year.
R1d
The California State Legislature should enact a statute requiring the State Controller to independently verify accuracy and completeness of district audits.
Response: Unknown
Score: 0
Water districts are not subject to rules of the RIS code that govern income recognition. Water districts, since they are government entities, are subject to the basis of accounting prescribed by the Government Accounting Standards Board, and the District's auditor reports based on these standards. The auditor verifies that the District Board approved not only payments to management, but all cash disbursements tested during the audit, and that the District maintains financial records for a minimum of five years, depending on the type of records.
F2
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 47 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 ...
Response: Unknown
Score: 0
Noted. See previous response.
R2
Auditors should confirm water districts’ compliance with IRS rules, that all income is being reported, that boards actively oversee payments to management, and that all financial records are maintained for at least five years.
Response: Unknown
Score: 0
Noted. The District does not have a policy for rotating audit firms. The District has, however, used four different firms in the past 10 years.
R2b
Expenses submitted for reimbursement or charges on district credit cards that exceed California State per diem allowances or that do not fall within permitted district expense policies should be disallowed, published on the district’s Web site and discussed at the next board meeting.
Response: Unknown
Score: 0
Noted.
F3
Some written practices and policies, which vary from district to district, may be outdated.
Response: Agree
Score: +1
Concur.
R3
In an effort to obtain a thorough and professional annual audit, auditors should be changed every three years.
Response: Unknown
Score: 0
Noted. The District makes financial information available to the public in accordance with the Brown Act. Given the limited size, budget, and staff available to the District, web-based reporting may not be practical.
R4
To increase public awareness of district activities and to provide easy access to this information, public water districts should establish and maintain a Web site with links to their audit report, district travel policies and travel expenses.
Response: Unknown
Score: 0
Concur. The District, however, has not had a rate increase in over ten years.
Finding #2 response: Noted. The District's board members do not have credit cards, and travel reimbursements for the board are rare. The District's auditors in prior audits or during the current audit have noted no abuses of travel, such as those noted in the finding.
R5
Notices of public hearings for rate increases should be clear and concise enabling customers to understand easily the reasons and justifications for such increases.
Response: Unknown
Score: 0
Noted. The District's board members do not have credit cards, and travel reimbursements for the board are rare. The District's auditors in prior audits or during the current audit have noted no abuses of travel, such as those noted in the finding.