BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Receive the Safe, Clean Water Performance Audit Report for the Period Covering July 1, 2021, Through June 30, 2024, with Management’s Response.
End
RECOMMENDATION: Recommendation
Receive the Safe, Clean Water Performance Audit Report for the period covering July 1, 2021, through June 30, 2024, with management’s response.
Body
SUMMARY:
On October 2, 2024, a task order was issued to conduct the first audit of the renewed Safe, Clean Water and Natural Flood Protection Program (SCW Program or Program). The renewed SCW Program, effective July 1, 2021, replaced the previous 2012 Safe, Clean Water and Natural Flood Protection Program (2012 Program) in its entirety. To ensure accountability and transparency, the program requires the Valley Water Board of Directors to conduct independent professional audits of the SCW Program at least every five years while the Program is in effect.
At the request of the Independent Monitoring Committee (IMC) and subsequent Board direction, staff initiated this audit earlier than five (5) years. Valley Water engaged PMA Consultants to conduct this independent performance audit, which was approved at an estimated cost of $206,380.
The primary objective of this independent performance audit was to assess the renewed SCW Program implementation for the period covering July 1, 2021, through June 30, 2024. The audit focused on key aspects, including:
• Governance and Transparency: The audit evaluated the effectiveness of overall Program governance, managerial oversight, and independent monitoring, including the roles of the Board of Directors and the IMC. The audit also examined the transparency and accuracy of public reporting on Program progress and outcomes.
• Compliance: The audit verified the Program's compliance with key provisions of the Measure S tax measure. This included assessing whether funds were collected and expended appropriately and whether the Board-approved Change Control Process was properly implemented for project adjustments, modifications, and non-implementation.
• Performance: The audit assessed Valley Water's progress toward meeting the SCW Program's six priorities and its key performance indicators (KPIs). This assessment included deep-dive reviews of a sample of projects to evaluate project management effectiveness in meeting scope, budget, and schedule commitments.
At the October 15, 2025, Board Audit Committee (BAC) meeting, staff presented the draft report with management responses and received feedback.
The purpose of this item is to present to the Board the renewed SCW Program Performance Audit Report with Management Response (Attachment 1).
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental impacts associated with this item. Audits are a tool utilized by the Board to monitor possible risks to the organization, and inform any guidance provided to staff to achieve the Board’s priorities.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Audit Report
Attachment 2: PowerPoint
UNCLASSIFIED MANAGER: Manager
Darin Taylor, 408-630-3068