AUSTIN — A water improvement district in the Rio Grande Valley that was the source of great scrutiny among Texas lawmakers last session has “significant weaknesses,” a new report by State Auditor John Keel states.
However, there were no misappropriated funds, it states.
“The Hidalgo County Water Improvement District No. 3 (District) has significant weaknesses in the management of its finances and operations. Those weaknesses exist largely because the district has not established a framework to provide for effective governance, oversight, and planning. Examples of specific weaknesses identified include a lack of financial controls; the absence of a formal, comprehensive, long-term master plan; noncompliance with procurement requirements; and noncompliance with certain requirements of the Texas Water Code,” Keel’s report concluded.