Tuesday, March 29, 2011

Lake Worth got more than it wished

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The Dispute

Lake Worth, as well as all the customers in Lake Worth's sub-regional system involving the monies that they allegedly owe, all agreed to an audit. However, all parties failed to define the scope of work and the type of audit.

Lake Worth wanted only a Financial Audit relative to the financial issues of the payment dispute whereas the customers demanded an Operational Audit that would entail much more detail.

Financial Audit:
Provides reasonable assurance through an opinion (or disclaim an opinion) about whether the financial statements are presented fairly in all material respects with generally accepted accounting principles.

Operational Audit:
Evaluates management's performance in establishing and maintaining internal controls and administering assigned responsibilities in accordance with laws, rules, regulations, contracts, grant agreements, and other guidelines.

The Result
The Staff Analysis said the following: "The scope of the audit should be determined based on the request by the City of Lake Worth taking into consideration the concerns of the other entities involved." Staff further recommended that the Auditor General set the scope and type of audit. According to today's PB Post, the State will be conducting both a Financial Audit as well as an Operational Audit.

3 comments:

  1. Hallelujah! FINALLY ! People have been begging for an audit for years! By trying to obstruct the audit, city staff makes itself look dirty.You would think that the first thing Stanton would have done when she saw Lake Worth's nonexistent,or at best,the VOODOO accounting that had been happening for years!!! that she would have been beating down the state's door for help !!!

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  2. Not so fast there doodle bug.... This is only an audit of the sewer regional fund. This, so far, doesn't have anything to do with the utility black hole or our general fund.

    My hope is that this leads the investigator to look at other smoking piles of debris laying around the general vicinity of their audit.

    Pray for rabbit trails, y'all!!

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  3. Maybe you guys need to do what we did - in Islamorada - we did a petition - forcing an operational audit by the state - not limited to just wastewater.

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