In a recent government meeting, significant discrepancies in time tracking and financial reporting between Monterey One and the Water Resources Agency were highlighted, raising concerns about compliance and transparency. An audit revealed inconsistencies between the hours logged in the payroll timesheet system and the work order system, leading to an inability to verify the accuracy of billed hours. For instance, on a single day, twelve employees reported 22 hours in the payroll system, while only five employees recorded 12 hours in the work order system, indicating potential errors or non-compliance in time entry.

The audit findings emphasized the need for Monterey One to establish a comprehensive organization-wide policy for time entry that integrates both systems. This integration is expected to enhance compliance and accuracy, as employees would have a single platform for logging hours, aligning their incentives with payroll requirements.

Additionally, the audit uncovered that Monterey One failed to provide required monthly financial reports to the Water Resources Agency for a ten-month period, which is crucial for budget monitoring and compliance. The report recommended that specific staff be assigned to ensure timely reporting and that a succession plan be implemented to maintain continuity in responsibilities.

Further issues arose regarding the segregation of finances for three programs managed by Monterey One. Initially housed within the general fund, these programs were later moved to a separate Reclamation fund, but they remained pooled together, obscuring financial transparency. The audit suggested that these funds be managed separately and undergo distinct audits to ensure clarity and accountability.

The findings also pointed to a lack of clarity in annual financial reports, which did not adequately reflect the pooled cash accounts used by Monterey One. This lack of transparency could lead to mismanagement of funds and hinder effective oversight by the Water Resources Agency.

To address these issues, the audit recommended several actions, including the cessation of pooled cash practices, the establishment of separate funds for each program, and the modification of agreements to ensure unspent funds are refunded annually. These measures aim to enhance financial management and oversight, ultimately fostering a more accountable relationship between Monterey One and the Water Resources Agency.