An Audit Report on the Kinney County Groundwater Conservation District Page: 2 of 64
64 p.View a full description of this report.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
tate
n ditor's
n ffice
John Keel, CPA
State AuditorAn Audit Report on
The Kinney County Groundwater
Conservation District
SAO Report No. 06-021
January 2006Overall Conclusion
Significant deficiencies in the Kinney County
Groundwater Conservation District's (District)
financial operations prevent the District from
ensuring that it (1) has timely, complete, and
accurate financial information for decision
making; (2) is able to meet its financial
obligations; or (3) protects against violations,
abuse, and fraud. In addition, the District's
Board has not demonstrated the financial
oversight of the District that is required by
Texas Water Code, Section 36.057(a). The
lack of proper financial oversight by the BoardBackground Information
House Bill 3243 (77th Legislature)
created the Kinney County Groundwater
Conservation District (District) effective
September 1, 2001.
The District, whose office is located in
Brackettville, Texas, issues permits for
wells located in zones of the Edwards
Trinity Aquifer, the Edwards Aquifer,
and the Austin Chalk Aquifer.
has contributed to the weaknessesin the District's accounting procedures and controls.
A lack of accounting procedures, controls, and oversight significantly increases the
potential for errors, theft, and fraud to occur. Auditors did not identify fraud
during testing of the District's revenue and disbursements. However, we cannot
provide assurance that fraud has not occurred. The District should act
immediately to address serious financial issues and implement a long-term
financial remediation plan.
The District complied with 26 (70 percent) of the 37 statutory requirements
tested; however, it did not comply with 12 (46 percent) of the 26 District rules
tested. The most significant examples of noncompliance were in the areas of well
permitting; Board oversight and delegation of authority to the District's general
manager; disbursement of District funds; and acceptance of grants, gratuities,
advances, or loans. For example:
> In the area of well permitting, the District scheduled three applicants for permit
hearings prior to determining whether the applications were administratively
complete. According to Texas Water Code, Section 36.114, and District Rule
9.01, these applicants should not have been scheduled for hearings until the
District determined that their applications were administratively complete.
> In the areas of Board oversight, delegation of authority, and disbursement of
funds, the District's general manager signs District checks and executes
contracts on behalf of the District. However, the District was unable to provideThis audit was conducted in accordance with Texas Water Code, Section 36.302.
For more information regarding this report, please contact Nicole Guerrero, Audit Manager, or John Keel, State Auditor, at
(512) 936-9500.
Upcoming Pages
Here’s what’s next.
Search Inside
This report can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Report.
Texas. Office of the State Auditor. An Audit Report on the Kinney County Groundwater Conservation District, report, January 2006; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth517329/m1/2/: accessed July 11, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.