Finding Text
Criteria Section 5.6 of the District?s bond covenant with the Texas Water Development Board (?TWDB?) requires the District to maintain rates and charges to produce sufficient gross revenues sufficient to pay all maintenance, operating and administrative expenses. Condition Current year expenditures exceeded revenue. Cause Repairs and maintenance expenditures exceeded what the District had budgeted. Effect The District is not in compliance with its covenants. Questioned Costs There are no questioned costs as a result of this finding. Recommendations The District should review its? budgeting process and internal controls over cash management and financial reporting. Management Response In August 2022, The District increased water and sewer rates to generate additional revenue. The District will work with TWDB and submit a corrective action plan.