Report under Review Prior to Submission to Board of Directors

CARMICHAEL, CA (MPG) - At a special meeting back in July 2020, the Carmichael Water District Board of Directors approved a contract with certified public accountants Richardson and Company for an audit of employee benefits payments.

In May 2020, the Board voted to terminate a set of employee benefits that had been granted without their approval, such as education/training benefits, deferred compensation, life insurance, and leave benefits—although they later reinstated some of those benefits. The scope of the audit was a review of benefits granted to nine exempt employees from July 2010 through July 2020.

Richardson and Company planned to compare the approved benefits offered to each position with the actual benefits received. They would also determine whether any unauthorized payments to employees indicated personal use of District funds or resources.

The Richardson and Company contract estimated that the cost of the audit would range from $39,250.00 to $81,130.00, and the District would be billed based on actual cost of services rendered. The contract further stated that “the engagement should be completed within 60 days of approval.” So, based on the date of approval, and barring “unforeseen problems,” the audit should have been completed by the end of September 2020 at the latest.

This timeline is also supported by the District’s Paid Expenditures Reports. After the audit contract was approved in July, the Paid Expenditures Report for August shows an initial payment to Richardson and Company in the amount of $29,862.50. The report for October shows a payment of $27,110.00, presumably a final payment for the completed audit.  

A total of $56,972.50 in District funds were spent on this audit, but now, even months later, the report has not yet been presented in a public forum at a meeting of the Board of Directors.

In response to an email inquiry, Carmichael Water District General Manager Cathy Lee stated that “the audit report is under review and verification for accuracy and has not been submitted to the Board or released for public review.  It will be submitted to the Board at a later date.”

This newspaper will continue to follow this topic and provide coverage of the audit report when it is released.