Purpose of Audit
The purpose of our audit was to examine the Joint Water Project’s operations for the period January 1, 2013 through May 31, 2014.
The City of Poughkeepsie and Town of Poughkeepsie entered into an intermunicipal cooperative agreement in 1991 to form the Poughkeepsie Joint Water Project, which provides water to City and Town as well as third parties outside of the City’s and Town’s borders. The Joint Water Project is governed by a Joint Water Board which comprises six members. Expenditures for 2013 were approximately $3.3 million.
- The Board does not require the City to make its quarterly estimated payments for operating costs.
- The City did not pay 70 percent of tested invoices on time, incurring late fees of $13,121.
- The annual reconciliation for 2013 was not completed until July 22, 2014, instead of March 1, 2014 as required.
- The City does not deposit Project funds into the Project’s bank account.
- The Town pays the City four percent of the Project’s annual budget, as per the intermunicipal agreement, for its share of administrative costs, but no analysis or documentation was provided to support this amount.
- Ensure that the City makes the required quarterly estimated payments.
- Ensure that bills are paid before or on due dates.
- Ensure that the annual reconciliation is performed by March 1 of each year.
- Ensure that the City deposits all quarterly payments into a Joint Water Project account.
- Analyze the time and costs incurred by the City to administer Project activities to determine the accuracy of the four percent administrative service charge to the Town.