GDPUD management report By Letters to the Editor EDITOR: Cities and special districts like GDPUD, a local water district on the Divide, are required to be audited by an independent CPA firm on a yearly basis. The audit itself is generally made up of a lot a lot of numbers that tell you what the income and expenses are for the institution as well as what assets are owned, their value, etc. Call me crazy but I have read so many of these that I actually enjoy looking at them now. Most people find them as interesting as paint drying but they are important to the proper operation of the organization. Most of the time, in well-run organizations, this process is just as boring as the actual report. In organizations that lack the expertise and knowledge because of a poor general manager or an incompetent board, the process is much different. Since this organization hasn’t had a working GM in a long time, we know where to place the blame. Like making sausage, the actual process of coming up with the data can sometimes be less than appealing. Unlike sausage, the product is not generally tasty. The report detailing the viability of the process is called a management report and most organizations are proud to provide them to the public without prompting. Some organizations are less proud of this report because it will expose any weakness in the accounting methodology of the organization. In the years that I have been involved with corporations and government entities and the many accounting and management reports that I have read, I have never read one that showed the sheer level of incompetence that the 2013 GDPUD management report did. So that we are clear, I sent a copy of this report to the Mountain Democrat because I wanted to make sure that they would be able to verify every statement that I will include here. The supporters of the present majority, including those intent in re-electing Board President Bonnie McLane, have been known to doubt my voracity so I would prefer to redouble my verification of the facts. There is not enough room to publish the entire report so I will provide you with a few of the many deficiencies found in this report: • 2013-01 Finding — Lack of certain accounting policies and formal guidelines: During the review of internal controls, it was noted that there are no formal accounting policies with regards to purchasing and reporting suspected fraud. Also, there are no written guidelines for the Audit Committee that outline the Committee’s duties and responsibilities. Effect: Without formal accounting policies for purchasing procedures, it is difficult for accounting principles to be applied uniformly by employees for all financial transactions. Without a formal fraud reporting policy, employees are less likely to report suspected fraud. Also, without duties and responsibilities outlined for the Audit Committee, the committee does not have any guidelines to follow to ensure that they are operating as intended. • 2013-04 Finding — Bank reconciliations are not reviewed or approved: During our audit of cash, we noted that bank reconciliations were not reviewed or approved. Effect: There is a lack of control over cash. Without review and approval of bank reconciliations, there is an increased risk that errors and irregularities may occur and go undetected, which may result in a misappropriation of funds. 2013-05 Finding — Form 700s were not completed: During our review of Form 700s, we noted that four employees/former employees did not complete the required Form 700. Effect: Fines could result if required Form 700s are not filed properly. 2013-06 Finding — Gasoline usage control deficiencies: During our review of gasoline usage, we noted the following: a. Four vehicles appeared to have odometer input errors. b. Three vehicles appeared to have low miles per gallon values. c. One vehicle appeared to have a miles per gallon value that is double the average miles per gallon value. Effect: Without strong controls over gasoline usage, there is an increased risk of misappropriation of assets. 2013-08 Finding — Employee reimbursements control deficiency: During our test of employee reimbursements, we noted one reimbursement was approved by the employee receiving the reimbursement. Effect: Without proper approval of employee reimbursements, there may be an increased risk of misappropriation of assets. This is a group that promised fiscal responsibility and has delivered willful mismanagement. As I have previously said, this is a rudderless ship. It is being sailed by three captains and no crew. How long before this charade affects the quality of our drinking water? How can we trust them to operate much less build a $10 million plant when they can’t even properly maintain a rudimentary accounting system? They crucified the previous board for one expensive meal and now we have no way of verifying how an unknown amount of money was spent because we have a broken accounting system. This is penny wise and pound foolish. Thinking that you can pay people nothing, treat them like dirt and expect a reasonable work product is arrogant ignorance We must all work together to put in place a board that is qualified, that has the ability and the experience to put this “Humpty Dumpty” back together again. LON USO Cool
Posted on: Sat, 02 Aug 2014 03:59:08 +0000
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