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An Audit Report on the Kinney County Groundwater Conservation District

May 2025

Overview

The Kinney County Groundwater Conservation District (District) had significant weaknesses in its financial and water management processes. Its failure to consistently enforce financial and management safeguards increased the risk of noncompliance, misconduct, and operational inefficiencies. For example, the District did not effectively manage its payment and banking processes or adequately protect the District’s legal and financial interests in its contracting processes.

In addition, the District did not consistently comply with applicable statutes and requirements, including Texas Water Code, Chapter 36. For example, the District did not develop a code of ethics or obtain financial audits annually as required.

The District also failed to enforce its water management rules, placing the health and long-term availability of the area’s water resources at risk.