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March 3, 2011

 Maragos: South Farmingdale Water District’s Internal Controls and Business Practices Need Improvement

District Delivers Affordable Water Rates

Nassau County Comptroller George Maragos released an audit of the South Farmingdale Water District (SFWD) which uncovered numerous operational, personnel and internal control deficiencies that need to be corrected to ensure good business practices and transparency.

"The South Farmingdale Water District must be complemented for providing its residents with affordable water service,” Comptroller Maragos said. “Yet, in order to maintain the public trust and protect public funds, the Commissioners and management must improve their internal controls and benefit practices."

The Comptroller also released a comparative analysis of the cost per 150,000 gallons of water of all the water districts in the County (See Exhibit 1). The analysis shows that SFWD provides water to homeowners at lower rates than average when compared with other water districts in the County. In fact, the annual cost to a homeowner for 150,000 gallons of water provided by SFWD is a low $319 per year. This rate is at least 50% less than comparable rates from privatized water systems.

The South Farmingdale Water District has positively responded to the Comptroller’s audit report. The district confirmed that some of the Comptroller’s recommendations have already been implemented and the majority of the remaining recommendations will be instituted as suggested.

Comptroller Maragos stressed that “it would be good public policy for the remaining audit recommendations to be implemented.”

PDF File Exhibit 1

PDF File Limited Financial Review of the South Farmingdale Water District