Management anticipates the amended ordinance will be approved by September 30, 2000. Until the new ordinance is adopted, the Wastewater Division will begin complying with the ordinance requirement by obtaining schematic drawings from customers as part of the reclaimed water irrigation permit process effective April 30, 2000. The Wastewater Division has significant amounts of inventory consisting of motors, equipment, parts and various supplies. Currently the inventory is being expensed when purchased. Inventory that is not required for operations during the year is not being recorded as an inventory asset.
Management is currently in the process of automating their inventory records.
Upon completion, procedures will be established and the inventory will then be recorded on the finance system as an asset. Management estimates the automation of the inventory records and the recording of inventory as an asset on the finance system will be completed by September 30, 2000. We would like to thank you and your staff for the attention given to the audit findings and the cooperation given to the Internal Audit staff. Internal Audit believes the controls, when fully implemented, will improve the accountability over the Division's operations. Another follow-up audit will be scheduled after the implementation of Management's Action Plans.