AUDIT OF THE POWAY REDEVELOPMENT AGREEMENT TRUST FUND

County Of San Diego, California Auditor and Controller Final Report Grand Jury Audit of the City of San Diego Water Department Service Level Agreements Office of Audits & Advisory Services January 2006 Report No. A06-019 AUDIT OF SAN DIEGO CITY WATER DEPARTMENT 1 SERVICE LEVEL AGREEMENTS JANUARY 2006 CONFIDENTIAL DRAFT REPORT SUBJECT TO THE DELIBERATIVE PROCESS PRIVILEGE - TABLE OF CONTENTS Page No. EXECUTIVE SUMMARY ....................................................................................................... 2 INTRODUCTION AND BACKGROUND ............................................................................... 3 AUDIT SCOPE AND LIMITATIONS...................................................................................... 3 METHODOLOGY .................................................................................................................. 4 FINDINGS.............................................................................................................................. 4 I. QUESTIONABLE USE OF WATER DEPARTMENT FUNDS...................................... 4 II. LACK OF EFFECTIVE INTERNAL CONTROLS FOR SERVICE LEVEL AGREEMENTS............................................................................................................. 8 REPORT DISTRIBUTION .................................................................................................... 10 COMMENDATION.............................. ...