Tuesday, 12 June 2012 04:07

AWA board will be asked to approve RFPs for independent financial review of the agency

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Amador County – The Amador Water Agency Board of Directors on Thursday will consider a staff request to issue a “Request For Proposals” for an independent financial review of the ageny’s financial system structure, policies, procedures and reporting.

The AWA Finance Committee, made up of Director Robert Manassero and Director Art Toy, recommended the RFPs as well, said General Manager Gene Mancebo, who requested authorization in a staff report to the board for its Thursday regular meeting.

Mancebo requested that the board discuss and authorize him to issue a Request For Proposals to conduct an assessment of the AWA’s financial system structure, policies, procedures and reporting, and then to return to the board with a recommended consultant to perform the review.

At the May 24 board meeting, the board gave direction to the Budget and Finance Committee “to review an expanded scope of work regarding services for an independent financial review,” Mancebo said. The committee met June 6 and recommended a draft RFP and scope of work.

Mancebo said as discussed during previous board meetings, the agency would benefit from a review of its finance systems, and the review “should be performed by an accounting firm which has relevant experience with water districts.” The RFP requires 15 years’ experience in California.

Mancebo said AWA is independently audited each year by a firm “which consistently has provided opinions that clearly show the Water Agency meets all financial requirements set forth by the Controller General of the United States and the State Controller’s Minimum Audit Requirements for California Special Districts as a whole.”

Mancebo said the scope recommended would not include any financial planning or rate analysis. He said the request would be for the outside firm to assess the AWA’s financial system “on a more detailed functional level and make recommendations that can improve efficiencies, effectiveness and ease of meeting reporting requirements and information requests, and enhance the financial transparency of the Water Agency.”

Mancebo said alternatives would be to continue with the current system and procedures with no external review. They could also conduct an internal assessment and provide recommendations; or consider revisions to the RFP.

The proposed scope would “examine the overall structure of AWA’s accounting system,” and examine “various fund relationships and associated account hierarchy for transfers.” It would also examine AWA procedures and practices for ensuring proper, consistent entries and would look at “the potential for automating payroll activities and potential fund and/or account consolidation.”

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.

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