Santa Cruz County Grand Jury
• 2013-2014
Pajaro Valley Water Management Agency Directors Needing Direction
⚠️ 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.
Findings and Recommendations 4 findings
F1
The Board of Directors has not been acting on the Material Weaknesses or Control Deficiencies listed in each audit for the last five years.
Related Recommendations (1)
R1
The Board of Directors should direct the staff to correct Material Weaknesses and Deficiencies before the following year’s audit and provide a review of the corrections to the Board.
F2
The PVWMA minutes and agenda materials fail to document whether the Administrative/Finance Committee has been forwarding or initiating any discussion regarding the Material Weaknesses or Control Deficiencies in their audit
Related Recommendations (1)
R2
The Board should direct the Administrative/Finance Committee to include discussion of auditor-reported Material Weaknesses or Deficiencies of any type in its annual recommendations to the Board.
F3
The Agency’s 2011-12 audit shows the PVWMA Long Term Debt to be over $41 million, which does not appear to comply with Section 511 of their Agency Act limiting outstanding debt to $300,000.
Related Recommendations (1)
R3
The Board should address the apparent conflict between the Agency’s current debt and the limits set in the Agency Act.
F4
The Grand Jury’s investigation revealed numerous instances of Agency failure to properly define and carry out roles of staff and Board of Directors.
Related Recommendations (1)
R4
The Board should employ a qualified CPA to conduct a full forensic examination of the Agency financial records and procedures, and submit a report to the Board recommending changes guiding the Board to exert the financial oversight for its required fiduciary responsibility.
Commendations 2
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CM1 Page 12C1. During our investigation a new ASM was hired in October 2012. Our main question in this investigation had been, why are these audit deficiencies that undermine the control of this critical agency so frequently unaddressed? The most common response was “we’re short-staffed.” Our recent interviews have revealed to us that the new ASM is working on the following: Table 3. Progress on Addressing Weaknesses Issues in this Grand Jury investigation Current status Material Weaknesses Reviewing Journal Entries in progress Reviewing Bank Statements and Reconciliations in progress 1999 Bond Covenant part of quarterly budget completed Recording of Grant Revenue in progress Deficiencies Government wide accounting practices in progress Reviewing Credit Card receipts in progress
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CM2 Page 13C2. One Director is calling for re-review of the auditors’ Findings and Deficiencies from past audits. We commend these efforts and look forward to the audit results for fiscal year 2012-13.
Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.
No Responses Found 1
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Pajaro Valley Water Management Agency
Special District