Texas State Auditor
SAO: Reports:
An Audit Report on Groundwater Conservation Districts
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John Keel, CPA Texas State Auditor SAO: Reports: An Audit Report on Groundwater Conservation Districts |
August 2010
Report Number 10-036
Nine (69 percent) of 13 groundwater conservation districts (districts) fully or partially achieved all groundwater management plan goals audited. Those districts included:
Three (23 percent) of the 13 districts audited fully or partially achieved two to three of the four goals audited. Those districts were:
One (8 percent) of the 13 districts audited, the Gateway Groundwater Conservation District, partially achieved one of the four goals audited.
Auditors reviewed districts' activities to achieve four of the eight goals required by statute. The goals reviewed were:
A list of the eight statutorily required groundwater management plan goals is presented in Appendix 4.
Districts' Compliance with Statutory Requirements
Twelve of the 13 districts audited were in full or partial compliance with 7 or more of the 10 Texas Water Code statutory requirements (the Bluebonnet Groundwater Conservation District and the Neches and Trinity Valleys Groundwater Conservation District fully complied with all requirements). The remaining district-the Corpus Christi Aquifer Storage and Recovery Conservation District-complied with three of the five requirements that were applicable to it (five requirements did not apply because that district did not have any revenue in the time period audited).
Examples of the statutory requirements included obtaining surety bonds for employees and members of the board of directors, obtaining an annual financial audit, adopting annual budgets, complying with documentation requirements, enforcing limits on fees for board members, and holding quarterly board meetings.
The requirement to obtain surety bonds for employees handling district funds had the highest level of noncompliance. Six (50 percent) of 12 districts audited did not fully comply with this requirement. Specifically:
Surety bonds protect districts from financial loss and provide some assurance that the districts are properly safeguarding their funds and are able to meet financial obligations.
Two of the 13 districts audited-the Brazos Valley Groundwater Conservation District and the Middle Pecos Groundwater Conservation District-have been operating under expired groundwater management plans. The Brazos Valley Groundwater Conservation District's groundwater management plan was due in July 2009, while the Middle Pecos Groundwater Conservation District's groundwater management plan was due in August 2009. Each district is required to review its groundwater management plan every five years, determine whether changes are necessary, and obtain approval of the groundwater management plan from the Water Development Board. The Water Development Board last approved the Brazos Valley Groundwater Conservation District's groundwater management plan in July 2004, and it last approved the Middle Pecos Groundwater Conservation District's groundwater management plan in August 2004.
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