Finding Text
Condition: Failure to file annual financial reports with the Texas Water Development Board in accordanc with bond covenants. Criteria: Filing annual financail reports on time with regulatory agencies is required to maintain compliance with debt covenants. Effect: The City's annual financail report was deliquent. Cause: Lack of monitoring by management and those charge with governance for compliance of debt covenants. Recommendation: We recommend the City monitor compliance requirements for all debt issued to ensure that reports are filed timely and the city remains in compliance with convenants.