WVWD Continues Massive Turnaround with Favorable Financial Report
WVWD Continues Massive Turnaround with Favorable Financial Report
RIALTO, CA – Capping off a year of tremendous turnaround, the West Valley Water District (WVWD) Board of Directors proudly released a “favorable” Comprehensive Annual Financial Report (CAFR) for the 2020 fiscal year.
Board President Channing Hawkins said, “This marks the end of a tough period for the water district. This report is a receipt to ratepayers of our work to deliver greater transparency and improved accountability at the West Valley Water District.”
Board Vice President Kyle Crowther said, “Collaboration was key here. Without proper planning and consistent cooperation between our board members, staff and independent organizations that helped to ensure compliance, this wouldn’t be possible. I’d like to thank our board members, managers and staff for working diligently together over the last several months to help turnaround our district’s finances and financial operations.”
The Pun Group, LLP, which served as the certified public accountant that audited WVWD’s finances, prepared the “favorable” comprehensive financial report and were responsible for the report’s data and accuracy ensuring compliance with strict Governmental Accounting Standards Board (GASB) guidelines. According The Pun Group, the audit’s “favorable” results means that “the financial statements were fairly presented in all material respects, accounting policies have been consistently applied, estimates are reasonable, and disclosures are properly reflected in the financial statements.” The Pun Group also found no problematic or questionable issues with management, internal controls, accounting or other inappropriate activities.
The “favorable” results are a significant improvement from a 2019 fiscal year audit, which found multiple deficiencies and material weaknesses extending from issues with the accounting manual, internal controls, pay rate increases, inventory usage, contract management and segregation of duties, a process which ensures proper oversight and reviews to catch errors. Many of these shortfalls were highlighted in the California State Controller’s Office report, which covered a similar calendar year and time period from July 1, 2016 to June 30, 2018.
Since that time, WVWD has worked with a number of independent organizations including Liebert Cassidy Whitmore, a nationally-recognized employment and labor relations firm, and the Special District Leadership Foundation (SDLF), a nonprofit that promotes excellence in governance and management of special districts, to help improve and conduct unbiased investigations and assessments of its operations. Last June, the WVWD Board of Directors also selected The Pun Group, LLP to serve as a certified public accountant to audit its finances and ensure compliance for the next three fiscal years. The firm is also charged with providing an opinion on WVWD financial statements and keeping board members and management updated with best practices and new developments affecting special district accounting and reporting policies.
Kenneth H. Pun, Managing Partner with the Pun Group said, “Management has taken our recommendations seriously and addressed all the issues identified in the 2019 audit, which has significantly improved and strengthened the internal controls at the Water District.”
Acting General Manager and Chief Financial & Administrative Officer Shamindra “Rickey” Manbahal stated, “Over the past year, we made tremendous improvements. Being tasked with protecting ratepayer dollars, it was imperative that we address this immediately and not let this continue, which I am proud to see in the outcome. This report is a testament to the hard work of our board of directors, management and staff. I look forward to continuing to assist the board with their commitment in moving the district forward.”
This CAFR includes a review WVWD’s approximately $30 million operating budget and $13 million capital improvement budget, which fund water services for 31 square miles within Counties of San Bernardino and Riverside through approximately 23,000 water service connections. In addition to several successful construction, renovation and replacement projects, the CAFR highlights a few recent noteworthy accomplishments in the report, including the Water District’s Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association, the District Transparency Certificate of Excellence from the SDLF, and the installation of Tyler Incode and Tyler Content ManagerTM document management solutions, which provide for better human resources and financial management.
###
The West Valley Water District has been proudly serving the communities of Bloomington, Colton, Fontana, Rialto, San Bernardino, and Jurupa Valley since 1952. Through name changes and consolidation, the mission has always remained the same: to provide customers with safe, high quality, and reliable water service at a reasonable rate and in a sustainable manner. The District provides water for 83,000 customers and is overseen by a five-member, publicly elected Board of Directors led by Board President Channing Hawkins.
