Audit offers control procedures for Water Board
In a special investigation report released Friday, Creston Water Board was scolded for allowing longtime General Manager Steve Green to swindle $90,000 away from Creston Water Works.
In the report, the auditor recommends Creston Water Board implement several control procedures “so that actions of one individual will act as a check on those of another and provide a level of assurance errors or irregularities will be noted within a reasonable time during the course of normal operations.”
Current Water Board President Lee McNichols said he has reviewed the recommended control procedures suggested in the 75-page report.
“We’ve already put some control procedures in place when I became chairman in January,” McNichols said. “We now have an audit committee that meets prior to our monthly meetings. The committee reviews all bills and bank statements. We are also getting needed policies written and approved by the board.
“People have to remember we didn’t get here overnight, and we won’t get it all fixed overnight either.”
Below, is a list of the auditor’s primary recommendations.
1) Creston Water Board should develop a job description for the general manager and review and approve all changes to employee salaries. Green should not have earned $49,720.42 in extra compensation/benefits for attending meetings and inspections. Green was a salaried employee responsible for all operations of Creston Water Works.
2) Creston Water Board should establish policies which ensure all leave taken by Water Works employees is properly recorded as vacation or sick leave.
Usage of vacation and sick time should be reviewed and approved by an independent party in a timely manner. Green should not have been allowed to carry over his vacation balance each year. Green’s vacation balance is currently overstated by $22,524.32.
3) A detailed equipment list should be maintained by Creston Water Works, and all assets and tools should be tagged with identifying information showing it is the property of Creston Water Works.
This will ensure employees like Green — who had a Water Works power washer, generator and many other items — do not use Water Works property for personal use.
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