ASSESSMENT OF THE WATER AUTHORITY'S INTERNAL CONTROL STRUCTURE AND PROCEDURES


BUDGETARY CONTROL: Operating and capital plans are established for each fiscal year. The completed plans are presented to the Board of Directors for review and final approval.

Board approval is required for any overall increase in appropriations. Budget control is maintained through the use of object codes and account appropriations. Actual expenditures are compared to these appropriations on a monthly and quarterly basis.

These controls work effectively and assure a smooth flowing budget process each year.

CAPITAL PLAN: The Management Staff and the consulting engineer identify and recommend capital improvements that are needed for the Water Authority to reliably serve current and projected water demand and usage.

The Authority adopts annually a five-year capital improvement program. The last five-year capital improvement program was adopted in 2018 for the years 2019-2023.

The planning process has been successful in assuring that areas of needs are identified and sufficient funding is provided.

RISK MANAGEMENT: The Water Authority maintains comprehensive liability and workers' compensation insurance in accordance with the levels required in our bond resolutions. All insurance coverage is obtained through commercial insurance companies. In addition, the Authority is very proactive in safety training and follows all OSHA safety requirements.

The risk management area has functioned very effectively and efficiently.

CASH MANAGEMENT: The Water Authority's investment objectives are to conform with all applicable legal requirements and with the Authority's bond resolution.

All funds are invested in compliance with the laws of the State of New York.

INDEPENDENT AUDIT: The Water Authority complies with the requirement to have an annual audit by independent auditors.

In summary, the internal control structure of the Authority, and the procedures implementing that structure, are working well and enabling the Authority to operate in an effective and efficient manner.