Finding Text
Condition – For the year ended September 30, 2025, the District had a failure of controls over the investment section from a failure to recognize and record investment activity. The controls in place were not followed during the period. This condition resulted in incomplete activity and ending balances of investments. Criteria – Controls in place over investments include obtaining third party statements, recording and monitoring sales, trades, redemptions, purchases, and other investments routinely. Ongoing record is kept to verify accuracy of third party records and propose internal adjustments to investments. Effects – The failure to routinely monitor investment changes and activities resulted in the misrecognition of realized, unrealized, and cost basis of investments being misstated. Recommendation – Abacus has recommended a routine report to be updated along with periodic statements, with adjustments being posted in conjunction. Abacus also recommends an evaluation of current investment record keeping, and ease of use. Managements Response – Beaver Water District is committed to evaluating the current process of reconciling investments, including assessing the current investment record-keeping system, to ensure correct recording of investment changes.