DWM Audit Update

DWM released both the details of its performance audit and the Department’s response to the audit last month. The audit was performed by KPMG. The firm made 83 recommendations related to the areas of finance, construction management, customer service and operational systems.

DWM agrees either in whole or in part with 75 of these recommendations, and is taking steps to implement them. DWM has some reservations about the remaining recommendations.

For example, DWM is concerned that KPMG did not perform a risk assessment of the 83 recommendations. A risk assessment would have determined whether a recommendation was cost-effective and efficient to implement. In addition, KPMG did not indicate which of the 83 recommendations should be implemented first or which ones could wait. Apart from these issues, DWM is concerned that KPMG relied on financial information that has changed dramatically due to volatile credit markets.

DWM presented the audit’s findings to seven water and wastewater utilities – El Paso, Texas; Boston; Miami-Dade County; Anchorage, Alaska, and three utilities in Georgia. All agreed with DWM’s position on risk assessment.

DWM will continue to process the information provided by the auditors and make whatever adjustments to its operations it feels are prudent.

To read a copy of the DWM Audit click here. (PDF)