Title
Consider receiving the July 22, 2024, GPP Analytics Water Recycling Agreement Expense Audit (Audit). (Staff Presenting: Ara Azhderian)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
Receive the July 22, 2024, GPP Analytics Water Recycling Agreement Expense Audit (Audit).
SUMMARY/DISCUSSION:
At the request of the Monterey County Water Resources Agency ("Agency"), the County of Monterey Auditor-Controller's Office ("ACO") engaged GPP Analytics, Inc. ("GPP") to conduct a financial audit to assess the accuracy and compliance of expenses reported by Monterey One Water ("M1W") reported over four fiscal years (FY 2018-19 to FY 2021-22), the audit period, in accordance with the Amended and Restated Water Recycling Agreement Between Monterey Regional Water Pollution Control Agency [now M1W] and Monterey County Water Resources Agency (the "Agreement"). The Agreement was entered into by the Agency and M1W on November 3, 2015, to incorporate and restate agreements that had been developed over the years since the establishment of the Castroville Seawater Intrusion Project ("CSIP"), the Salinas Valley Reclamation Project ("SVRP"), and the Salinas River Diversion Facility ("SRDF"). Subsequently, there have been three minor amendments to the Agreement related to the New Source Water Facilities.
The Audit's objectives were to evaluate M1W's expenses for compliance with the provisions of the Agreement. This work was completed through verifying if expenses for the SVRP, CSIP, and the SRDF were reasonably incurred, verifying direct and indirect costs were accurately documented, and assessing financial systems and internal controls. The Audit aimed to verify proper record keeping, accurate reporting, accurate reconciliations, and compliance with the Agreement overall.
During the audit, starting from the entrance conference on August 24, 2023, to the exit interview on April 8, 2024, staff from GPP, M1W, the ...
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