Auditors find weak inventory controls at Water Department; county plans new storage and inventory count

Auditors warned the Audit Committee on May 14 that the Water Department’s inventory controls are weak and that the county needs improved counting and storage procedures.

Tony Roselli and audit staff said the county had not performed a physical count since the departure of the prior inventory lead and that the department’s automated perpetual ledger had grown to more than $1 million in recorded inventory. Audit work and spot checks found discrepancies, and auditors reported the perpetual ledger and physical counts did not reconcile for some items.

Staff described operational causes: during COVID, the department ordered extra parts to avoid supply‑chain shortages, and materials were stored outdoors in multiple on‑site locations. Bridal (staff member) and other speakers said some items have been weather‑damaged and some valuable parts in the stockroom had not been counted. Auditors reported mismatches including a difference in pipe inventory of about $65,000 and other items that had not been regularly inventoried.

Corrective steps described by staff include a full physical inventory planned for June and placing materials temporarily inside a lockable mobile treatment facility until a permanent storage building is completed. Drew, the DPW director, and Mark (staff member) were described as engaged in the remediation plan. Auditors said they will return in July to verify reconciliations and assess whether discrepancies require further investigation or write‑offs.

This item was presented as an audit finding and recommendation for improved internal controls; no formal committee vote was taken at the meeting.