Auditor Galloway issues citizen-requested audit of public water supply district in Washington County

Report finds concerns with bidding process; district earns good rating
September 5, 2017

Missouri State Auditor Nicole Galloway has released an audit of Public Water Supply District #4 located in Washington County. The district provides sewer service to approximately 115 homes in the Holiday Shores subdivision near the city of Bismarck, which surrounds Wing Lake. The audit was initiated by citizens through the petition process.

"The public water supply district provides a fundamental service to this community and those citizens deserve transparency," Auditor Galloway said. "This independent review makes several recommendations to ensure residents can have confidence that the district is acting in the best interest of taxpayers."  

The report includes recommendations to improve the bidding process and create formal procedures for bidding major projects. In November 2016, the board president was paid $2,553 to supervise a $97,000 sewer tank repair and replacement. These services were not competitively bid and the board did not document its formal approval or have a written agreement for the services before beginning the project. State law prohibits this type of agreement between officials and the district they serve, unless there has been a competitive bidding process.      

The report also recommends that the board create a policy regarding public access to district records and improve budgeting practices.

The district received an overall performance rating of good. A copy of the complete report is online here.

For more information, contact: