The Monterey County Water Resources Agency convened a meeting to discuss the findings of a recent audit conducted by GPP Analytics regarding the financial and administrative agreements between the agency and Monterey One Water. All supervisors were present, and the meeting included a Spanish interpretation service for attendees.

General Manager Arajdarian introduced Julian Metcalf from GPP Analytics, who presented the audit results. The audit, which began in August 2023, focused on compliance with the amended water recycling agreement over four fiscal years. Metcalf outlined the audit's objectives, methodology, and key findings.

The audit revealed significant issues, including an estimated $1.1 million in overcharges due to noncompliance with the indirect cost methodology outlined in the agreement. The audit found discrepancies in how Monterey One calculated these costs, leading to recommendations for a refund and a clearer agreement on the calculation methods.

Another major finding highlighted inconsistent time records related to direct charges. The audit noted discrepancies between payroll records and the work order system, indicating a lack of alignment that hindered accurate billing assessments. The report emphasized the need for improved internal controls and suggested that Monterey One should provide the Water Resources Agency with regular timesheet and work order data for better oversight.

Additionally, the audit identified a failure to provide required monthly financial reports for a ten-month period, which is crucial for the agency's oversight responsibilities. This lack of communication was seen as indicative of broader issues in the management of the agreement.

The meeting concluded with a call for both parties to address these findings collaboratively to enhance transparency and compliance moving forward.