Archive for August, 2015

Madison Water Utility: Materially Incorrect

Monday, August 24th, 2015
From a close follower of all things MWU:
If you have 15 min.’s to devote, you really should read the Baker Tilly Audit 2014 Management Letter.pdf
It really is quite a remarkable and sweeping flat-out slam of the Water Utility for its financial incompetence:
“The Utility does not have internal controls in place that allow for the presentation of materially-correct year-end financial statements.”
“Management has not prepared financial statements that are in conformity with generally-accepted accounting principles.”
“Material misstatements in the general ledger were identified during the financial audit.”
….
Customer billing errors
Cyber attack risk: “Have a plan developed and practiced so that you are prepared in the event of a data breach.”
“Lack of preparedness”: Baker Tilly had “difficulties performing the audit”
I am a big proponent of public ownership of utilities. Madison Gas & Electric’s rampant, ideological pro-carbon agenda is an example of why public accountability is so important.
Unfortunately, our city-owned water utility, through sheer incompetence, combined with an arrogant dismissal of public oversight, is invalidating the goodness that public ownership should bring.