William Davidson

The Audit Committee reviewed the audit plan and strategy for the upcoming fiscal year ending May 31, 2026, presented by KPMG. The discussion included the audit scope, timeline, identified risk areas such as management override of controls, and proposed audit fees. Key focus areas for the audit encompass financial statements, internal controls, regulatory compliance, grant funding, revenue, payroll, debt, and liabilities.

The board meeting addressed various contract extensions and new contract awards for water authority infrastructure projects, including land use counsel, environmental services, and mechanical maintenance. Key topics included authorization for wasted water credit adjustments, approval of conference and training travel for staff, and significant personnel actions such as new hires and promotions. The board also reviewed and approved budget revisions for capital projects, updated fleet policies, and authorized the commencement of litigation for environmental impacts and infrastructure damage.

The committee discussed the 2026 Audit Plan and Strategy, emphasizing risk assessments across financial, operational, technology, cybersecurity, governance, and compliance categories. Topics included the audit process, reporting mechanisms for audit findings to the board, the tax lien process, and the allocation of hours for emerging needs. Additionally, the committee addressed public inquiries and reviewed the engagement letters and fee structures for audit services.

The committee reviewed the proposed Fiscal Year 2027 budget and rate proposal, which aims to support infrastructure investment and long-term financial stability. Discussion included the proposed $364 million budget, which covers operating, capital, and debt service requirements. The committee examined staffing levels, ensuring that position eliminations were justified by department heads, and ultimately approved the recommended rates and fees as well as the proposed operating, capital, and debt service budgets.

The board meeting agenda focused on the extension and approval of various service and construction contracts, including maintenance for infrastructure, water supply, and building services. Financial matters were addressed, including budget amendments, rate and fee recommendations for services, and approval of payments for invoices. Several equipment acquisitions and renewals for software subscriptions and support were authorized. Additionally, the board discussed special services such as radio frequency consulting and on-call engineering services, along with internal personnel matters and appointments.