West Valley Water District

internal Control System Review
STATUS MEETING mart-on

Date: September 17, 2019

Time: 02:00 P.M.

Location: West Valley Water District
855 W. Baseline Rd,
Rialto, CA 92376

Persons Attending:
Status Meeting Agenda Sign-In Sheet, EWP .
Agenda Items:

1} Current Procedures:
a] Reviewing contracts and invoices
i) Additional supporting documentation
b) Sampling payrollfovertime
c) Reviewing Directors? Expenses
2} Pending:
a) Fixed asset inventory listing
in} Wire transfers
c} Review reconciliation from cashier register to bank statements
d) Ethics course from directors

Preliminary Issues:

Human Resources:

 

+The district failed to provide documentation to support the district performed a hiring process for
executives? positions

+Failed to provide a fair and competitive hiring process for three non-executives positions
+Hired position before position were approved in the district?s budget
Excessive increase in pay rate from internal promotion

No evidence that the District performed a thorough review and veri?ed candidate?s education and work
experience.

Background checks were performed after candidates were hired
Contracts:
Multiple professional contracts did not undergo a competitive bidding process

Multiple contracts exceeded the original contract amount

 

 

West Valley Water District

internal Control System Review
STATUS MEETING AGENDA

Multiple services were provided and invoice before a purchase order was completed.
District excluded multiple contractors? insurance requirement

Credit Cards:

Credit cards expenses lack justification and supporting documentation

Credit Card were used for non-district business related expenses

Multiple credit card purchases did not follow the district purchasing policy

Expenses:

+lnvoices lack of detail and description of work performed.

?.Failed to perform the district purchasing process,- invoices were received before purchase requisition
and purchase order.

+Travel expenses for consulta 

Spensership Police and Fire Awards Dinner
Sponsorship 78"" Annual Installation Gala-Casino Rovale
Lobbying Fees

Sierra Lakes Golf Club.

Varner Sr Brandt, 74639, 1/17/2019 duplicate payment of of legal fees (payment was originated in
Check No.74429, 12f14i2018

Lack of Segregation of Duties:

District personnel outside of the Finance and Purchasing department have access right to the district
accounting function; they have the ability to execute, track, and record transactions

+Lack of and procedures

+Cancellation of EPLI Insurance policy from ACWA JPIA