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Home My WebLink AboutAgenda Packet - Finance & Human Resources Committee - 07/09/2024FINANCE & HUMAN RESOURCES COMMITTEE JULY 9, 2024 East Valley Water District was formed in 1954 and provides water and wastewater services to 107,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5member elected Board. COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Finance & Human Resources Committee Meeting July 09, 2024 1:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelated modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 8854900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.Approve the September 11, 2023 Finance & Human Resources Committee Meeting Minutes 2.Approve the October 10, 2023 Finance & Human Resources Committee Meeting Minutes 3.Approve the November 14, 2023 Finance & Human Resources Committee Meeting Minutes 4.Approve the February 13, 2024 Finance & Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 5.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 202324 Audit 6.Workplace Violence Prevention Program REPORTS 7.Finance Activities 8.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEJULY 9, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Finance & Human Resources Committee Meeting July 09, 2024 1:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelated modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 8854900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.Approve the September 11, 2023 Finance & Human Resources Committee Meeting Minutes 2.Approve the October 10, 2023 Finance & Human Resources Committee Meeting Minutes 3.Approve the November 14, 2023 Finance & Human Resources Committee Meeting Minutes 4.Approve the February 13, 2024 Finance & Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 5.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 202324 Audit 6.Workplace Violence Prevention Program REPORTS 7.Finance Activities 8.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEJULY 9, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.COMMITTEE MEMBERSDavid E. SmithGoverning Board Member Ronald L. CoatsGoverning Board MemberFinance & Human Resources Committee MeetingJuly 09, 2024 1:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disabilityrelatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 8854900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.Approve the September 11, 2023 Finance & Human Resources Committee Meeting Minutes 2.Approve the October 10, 2023 Finance & Human Resources Committee Meeting Minutes 3.Approve the November 14, 2023 Finance & Human Resources Committee Meeting Minutes 4.Approve the February 13, 2024 Finance & Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 5.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 202324 Audit 6.Workplace Violence Prevention Program REPORTS 7.Finance Activities 8.Human Resource Activities ADJOURN Agenda Item #1 July 9, 20241 Meeting Date: July 9, 2024 Agenda Item #1 Consent Item 1 1 2 4 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the September 11, 2023 Finance & Human Resources Committee Meeting Minutes RECOMMENDATION That the Finance & Human Resources Committee approve the September 11, 2023 meeting minutes. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS September 11, 2023 Minutes Page 1 of 2 Minutes 9/11/2023 cmk 5 1 8 Draft pending approval EAST VALLEY WATER DISTRICT September 11, 2023 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 1:30 p.m. and Director Smith led the flag salute. PRESENT: Directors: Coats, Smith ABSENT: None STAFF: Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Director of Administrative Services; Rudy Guerrero, Finance Supervisor; Mark Hokanson, Accountant; Christi Koide, Business Services Coordinator GUEST(s): Members of the public PUBLIC COMMENTS The Business Services Coordinator declared the public participation section of the meeting open at 1:31 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF CONSENT CALENDAR 1. Approval of December 5, 2022 Finance and Human Resources Meeting Minutes 2. Approval of February 14, 2023 Finance and Human Resources Meeting Minutes A motion was made by Director Coats, seconded by Director Smith, that the Committee approve the Consent Calendar as submitted. The motion carried by the following: Ayes: Coats, Smith Noes: None Absent: None LOW INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM UPDATE The Chief Financial Officer gave a brief program overview of the Low Income Household Water Assistance Program (LIHWAP), and recent updates from the State that occurred in March. He stated that current and future delinquent bills through December 2023, with a possible extension to March 2024, may now be paid through the program. Page 2 of 2 Minutes 9/11/2023 cmk 5 1 8 Information only, no action required. SUMMER INTERNSHIP AND EDUCATIONAL PARTNERSHIPS UPDATE The Director of Administrative Services gave a presentation and update of the Summer Internship Programs and Educational Partnerships. She stated that for the summer internship that completed in June, all interns gave a presentation to the Leadership Team of what was learned, favorite aspects of the program, and take-a-ways for the future. She stated that new Pathway partnerships include the following: San Gorgonio High School, Indian Springs High School, California State San Bernardino Cyber Security Program, Claremont McKenna College, Entrepreneur High School, various school career fairs, career days, and other activities at local schools. REPORTS FINANCE ACTIVITIES Nothing to Report. HUMAN RESOURCE ACTIVITIES Nothing to Report. ADJOURN The meeting adjourned at 2:15 p.m. Ronald L. Coats David E. Smith Governing Board Member Governing Board Member Agenda Item #2 July 9, 20241 Meeting Date: July 9, 2024 Agenda Item #2 Consent Item 1 1 2 4 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the October 10, 2023 Finance & Human Resources Committee Meeting Minutes RECOMMENDATION That the Finance & Human Resources Committee approve the October 10, 2023 meeting minutes. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS October 10, 2023 Minutes Page 1 of 2 Minutes 10/10/2023 cmk 1 6 7 9 Draft pending approval EAST VALLEY WATER DISTRICT October 10, 2023 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 1:33 p.m. and Director Coats led the flag salute. PRESENT: Directors: Coats, Smith ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Director of Administrative Services; Jason Wolf, Senior Engineer; Rudy Guerrero, Finance Supervisor; Mark Hokanson, Accountant; Christi Koide, Business Services Coordinator GUEST(s): Members of the public PUBLIC COMMENTS The Business Services Coordinator declared the public participation section of the meeting open at 1:33 p.m. There being no written or verbal comments, the public participation section was closed. REVIEW THE DRAFT ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2022-23 The Chief Financial Officer introduced Mr. Manno, the audit partner from Rogers, Anderson, Malody & Scott, LLP (RAMS), who gave a brief presentation of the responsibilities of the Auditor, and an overview of Interim and Year-end audit procedures. Mr. Manno stated that the audit was conducted in accordance with Generally Accepted Auditing Standards. Furthermore, the District’s Financial Statements were fairly presented, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP). Information only, no action required. REVIEW RESOLUTION 2023.15 – UPDATING WATER CAPACITY FEES The Chief Financial Officer gave a brief overview of the 2019 Water and Wastewater Capacity Fee Study that was completed by IB Consulting. He stated that as a result of the study, proposed adjustments and increase to District capacity fees became effective Page 2 of 2 Minutes 10/10/2023 cmk 1 6 7 9 January 1, 2020. Since the fee update almost four years ago, the District has finished the Advanced Metering Infrastructure (AMI) implementation for small meters, and has systematically replaced large meters. Staff observed that these meters have greater flow capabilities and requested IB Consulting to revise their calculations and issue a Technical Memorandum with proposed adjustments. The proposed adjustments will be presented during a public hearing scheduled for October 11, 2023. Information only, no action required. REPORTS FINANCE ACTIVITIES The Chief Financial Officer reported that the Finance Department is wrapping up the District’s Audit and will begin working on the Popular Annual Financial Report. HUMAN RESOURCE ACTIVITIES The Director of Administrative Services reported on the District’s Health Fair for staff and the transition of the Emergency Preparedness Program from Public Affairs to Human Resources. ADJOURN The meeting adjourned at 1:53 p.m. Ronald L. Coats David E. Smith Governing Board Member Governing Board Member Agenda Item #3 July 9, 20241 Meeting Date: July 9, 2024 Agenda Item #3 Consent Item 1 1 2 9 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the November 14, 2023 Finance & Human Resources Committee Meeting Minutes RECOMMENDATION That the Finance & Human Resources Committee approve the November 14, 2023 meeting minutes. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS November 14, 2023 Minutes Page 1 of 2 Minutes 11/14/2023 cmk 1 6 8 0 Draft pending approval EAST VALLEY WATER DISTRICT November 14, 2023 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 1:30 p.m. and Director Smith led the flag salute. PRESENT: Directors: Coats, Smith ABSENT: None STAFF: Michael Moore, General Manager/CEO; Kerrie Bryan, Director of Administrative Services; Rudy Guerrero, Finance Supervisor; Mark Hokanson, Accountant; Christi Koide, Business Services Coordinator GUEST(s): Members of the public PUBLIC COMMENTS The Business Services Coordinator declared the public participation section of the meeting open at 1:31 p.m. Mr. Fred Yauger made a public comment regarding the District’s Popular Annual Financial Report. REVIEW THE DRAFT POPULAR ANNUAL FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2023 The Accountant gave a brief overview of the Popular Annual Financial Report (PAFR) for year ended June 30, 2023. He stated that the PAFR is a condensed version of the Annual Comprehensive Financial Report that was approved in October. Information only, no action required. REVIEW AUTHORIZATION TO TRANSFER UNCLAIMED FUNDS INTO THE DISTRICT’S GENERAL FUND The Finance Supervisor gave a brief overview of the process prescribed by the State to perform procedures to unencumber stale-dated checks, to keep the related funds from escheating to the State. The Committee recommended that this item be presented to the Board of Directors to authorize the Chief Financial Officer to perform procedures prescribed in the Government Page 2 of 2 Minutes 11/14/2023 cmk 1 6 8 0 Code and Code of Civil Procedure for the purpose of unencumbering stale-dated checks and authorization to transfer unclaimed funds into the District’s general fund. Information only, no action required. COVID-19 PREVENTION PROGRAM The Director of Administrative Services gave a brief history of how the District navigated through the COVID-19 pandemic. The policies and protocols that were established quickly evolved based on new State, Federal, and local Health Department regulations. She stated that on May 11, 2023 the U.S. Department of Health and Human Services declared the COVID-19 public health emergency officially over, and staff reviewed the Non- Emergency regulations and recommended these to be more suitable for the District moving forward. The Committee recommended that this item be presented to the Board of Directors to approve the removal of Section 9: COVID-19 Policies and Protocols, from the Administrative Policies & Programs Manual, and adopt Policy 6.13 COVID-19 Prevention Program, under Section 6: Workplace and Building Standards. Information only, no action required. REPORTS FINANCE ACTIVITIES The Finance Supervisor reported that the Finance Department is working on the Rate Study, Disclosure Annual Report, and exploring new banks for District Banking. HUMAN RESOURCE ACTIVITIES The Director of Administrative Services reported on Focus group meetings and holding an Emergency Operations Center Table-top training exercise for District staff. ADJOURN The meeting adjourned at 2:00 p.m. Ronald L. Coats David E. Smith Governing Board Member Governing Board Member Agenda Item #4 July 9, 20241 Meeting Date: July 9, 2024 Agenda Item #4 Consent Item 1 1 3 1 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the February 13, 2024 Finance & Human Resources Committee Meeting Minutes RECOMMENDATION That the Finance & Human Resources Committee approve the February 13, 2024 meeting minutes. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS February 13, 2024 Minutes Page 1 of 3 Minutes 2/13/24 cmk 5 1 8 Draft pending approval EAST VALLEY WATER DISTRICT February 13, 2024 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES Ms. Koide called the meeting to order at 1:30 p.m. and Director Smith led the flag salute. PRESENT: Directors: Coats, Smith ABSENT: None STAFF: Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Director of Administrative Services; William Ringland, Public Affairs/Conservation Manager; Rudy Guerrero, Finance Supervisor; Roxana Morales, Public Affairs Specialist; Mark Hokanson, Accountant; Christi Koide, Business Services Coordinator GUEST(s): Members of the public PUBLIC COMMENTS The Business Services Coordinator declared the public participation section of the meeting open at 1:31 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF CONSENT CALENDAR 1. Approval of the March 14, 2023 Finance & Human Resources Committee Meeting Minutes 2. Approval of the April 11, 2023 Finance & Human Resources Committee Meeting Minutes 3. Approval of the June 13, 2023 Finance & Human Resources Committee Meeting Minutes 4. Approval of the July 11, 2023 Finance & Human Resources Committee Meeting Minutes A motion was made by Director Coats, seconded by Director Smith, that the Committee approve the Consent Calendar as submitted. The motion carried by the following: Ayes: Coats, Smith Noes: None Page 2 of 3 Minutes 2/13/24 cmk 5 1 8 Absent: None INFORMATION ITEMS FINANCIAL PLANNING WORKSHIP The Chief Financial Officer gave a brief presentation on the District’s current rate structure and overview of budget-based rates. He stated that there was a 12% drop in water demand within the past two years due to a severe drought and customer efficiencies that reduced water consumption. Additionally he discussed the rate drivers for completing a rate study and the need to reset revenue and expense assumptions for the next five years. Mr. Habib Isaac with IB Consulting gave a presentation on the Financial Plan for the District and discussed the District’s current financial position by enterprise fund. He reviewed key factors that impacted the Financial Plan. Information only, no action required. REVIEW REVISED RESERVE FUNDS POLICY 7.2 The Finance Supervisor gave a brief overview of the District’s existing Reserve Funds Policy and reviewed all changes with the Committee. The Committee recommended revisions to the Reserve Funds Policy be presented to the Board of Directors for approval. Information only, no action required. DISCUSSION ITEMS SET THE DAY AND TIME FOR HOLDING RECURRING MEETINGS The Committee agreed to have the meetings monthly on the second Tuesday of the month at 1:30 p.m. REPORTS FINANCE ACTIVITIES Nothing to report. HUMAN RESOURCE ACTIVITIES The Director of Administrative Services gave a brief staffing update. Page 3 of 3 Minutes 2/13/24 cmk 5 1 8 ADJOURN The meeting adjourned at 3:06 p.m. Ronald L. Coats David E. Smith Governing Board Member Governing Board Member Agenda Item #5 July 9, 20241 Meeting Date: July 9, 2024 Agenda Item #5 Informational Item 1 1 2 1 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2023-24 Audit RECOMMENDATION This agenda item is for informational purposes only, no action is required. BACKGROUND / ANALYSIS Each year the East Valley Water District (District) contracts an independent financial auditor to review the prior year’s financial statements. The audit is both an industry best practice and a requirement of the State Controller Minimum Audit Requirements for California Special Districts. The independent Auditor selected for Fiscal Year 2023-24 review is Rogers, Anderson, Malody & Scott, LLP (RAMS). After completion of their audit, a report will be provided directly to the Board of Directors (Board). As auditing is a review of managements’ activities, this introduction is essential for establishing a line of communication between the auditors and Board without facilitation from staff. RAMS has provided a Communication Letter to the Board regarding auditor responsibilities to help ensure there is no expectation gap regarding the audit services for the fiscal year ended June 30, 2024. Also attached is a schedule / timeline for the work to be performed over the next four months. RAMS will also provide a presentation on their upcoming audit process and will be present to answer any questions. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #5 July 9, 20242 Meeting Date: July 9, 2024 Agenda Item #5 Informational Item 1 1 2 1 Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. RAMS Presentation 2. Communication Letter 2023-24 3. RAMS Auditing Plan East Valley Water District For the year ended June 30, 2024 Pre-audit planning meeting July 9, 2024 Scott W. Manno, CPA, CGMA Partner Table of Contents •Audit Issues •General Audit Information •Audit Responsibilities •Audit Timing •Risk Assessment Procedures •Questions, Concerns, etc.? Audit Issues •Upcoming Pronouncements: •GASBS No. 99, Omnibus, Various •GASBS No. 100, Accounting Changes and Error Corrections, FY 24 •GASBS No. 101, Compensated Absences, FY 24 •GASBS No. 102, Certain Risk Disclosures, FY 25 •GASBS No. 103, Financial Reporting Model Improvements, FY 26 General Audit Information •Audit of District’s financial statements in accordance with: •US Generally Accepted Auditing Standards, •Government Auditing Standards, and •the State Controllers Minimum Audit Requirements for Special Districts •Single Audit, if required Audit scope •Opinion on audited financial statements •SAS 114 Post audit communication •Report on Internal Control and Compliance •Report of Compliance over Major Federal Programs (if Single Audit required) Audit deliverables Audit Responsibilities •Overseeing strategic direction of District •Oversight of District management •Accountability, including the financial reporting of District (Fiduciary) Governance •Provide auditor access to relevant information, additional information requested, and unrestricted access to personnel •A system of internal controls relevant to the preparation and presentation of the financial statements (including programs to prevent and detect fraud) •Preparation and fair presentation of District financial statements in accordance with GAAP Management •Perform audits in accordance with various standards •Reports to Governance •Report any significant deficiencies or material weaknesses (required) •Express opinion on managements financial statements •Reasonable (defined as a high level of assurance), not absolute assurance financial statements are free of material misstatements, as a whole, whether due to fraud or error Auditor Audit Timing Audit planning –continuous Interim audit –April Year-end audit -September Reporting -October Risk Assessment Procedures •Interviews with staff •Walkthroughs •Policy manuals Update understanding of internal control processes •Cash disbursements (including bank reconciliations, contracts, and Cal-cards) •Payroll •Billings (recalculate small sample) Test internal controls (as needed) •Improvements over processes, controls •Significant deficiencies •Material weaknesses Document and present any possible findings •Assess overall risk of material misstatement •Develop customized audit programs •Obtain sufficient appropriate audit evidence to render an opinion Substantive testing Risk Assessment Procedures (continued) Presumptive/inherent risks in all audits Revenue Recognition Management override of internal controls Questions, concerns, etc.? 73 5 E. 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A N DE RSO N . M/\L ODY & SCO T T. L LP 'l.f{llllll1•'lll\tl1 I\< >llf'-ll/\, 11, ,If/< I ''HI To the Board of Directors East Valley Water District Highland , California April 9 , 2024 This letter is provided in connection with our engagement to aud it the financial statements of the East Valley Water District (the District) as of and for the year ended June 30, 2024. Professional standards require that we communicate with you certain items including our responsibilities with regard to the financial statement audit and the planned scope and timing of our audit , including significant risks we have identified . Our Responsibilities As stated in our engagement letter dated April 9, 2024, we are responsible for conducting our audit in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards and the State Controller's Minimum Audit Requirements for California Special Districts , for the purpose of forming and expressing an opinion about whether the financial statements that have been prepared by management , with your oversight, are prepared , in all material respects , in accordance with accounting principles generally accepted in the United States of America, as well as accounting systems prescribed by the California State Controller's Office and State regulations governing special districts. Our audit does not relieve you or management of your respective responsibilities. Our responsibility relating to other information, whether financ ial or nonfinancial information (other than financial statements and the audi tor's report thereon), included in the District's annual report includes on ly the information identified in our report. We have no responsibility for determining whether the introductory or statistical information is properly stated . We requ ire that we receive the final version of the annual report (including all the documents that , together , comprise the annual report) in a timely manner prior to the date of the auditor's report, or if that is not possible, as soon as practicable and , in any case , prior to the District's issuance of such information. Planned Scope of the Audit Our audit will include examining , on a test basis , evidence supporting the amounts and disclosures in the financial statements; therefore , our audit will involve judgment about the number of transactions to be examined and the areas to be tested . Our audit is designed to provide reasonable , but not absolute, assurance about whether the financial statements as a who le are free of material misstatement , whether due to error , fraudulent financial reporting, misappropriation of assets , or violations of laws or governmenta l regu lations. Because of this concept of reasonable assurance and because we will not examine all transactions , there is a risk that material misstatements may exist and not be detected by us. -1- ST AB ILliY A CCURACY T RU ST Board of Directors East Valley Water District Our aud it will include obtaining an understanding of the District and its environment. including its internal contro l, sufficient to assess the risks of material misstatement of the financial statements and as a basis for design ing the nature , t iming , and extent of furthe r audit procedures, but not for the pu rpose of expressing an opin ion on the effectiveness of the District's internal control over financial report ing . How ever , we will communicate to you at the conclusion of our audit any material weaknesses or significant deficiencies identified. We will also communicate to you: • Any violat ion of laws or regulations that come to our attention ; • Our views relating to qualitative aspects of the District's significant accounting practices , including accounting policies , accounting estimates , and financial statemen t d isclosures ; • Significant d ifficulties , if any, encountered during the audit; • Disagreements w ith management, if any, encountered during the aud it; • Significant unusual transactions, if any ; • The potentia l effects of uncorrected misstatements on future-period financial statements ; and • Other significant matters that are relevant to your responsibilities in overseeing the financia l report ing process. Our responsib ility as auditors is, of course , limited to the period covered by our audit and does not extend to any other periods . Certain significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal contro l processes . Although we are currently in the plan ning stage of our audit, the follow ing presumptive significant risks are applicable to our audit and require special aud it considerations: • Management's override of internal controls over financial reporting : Auditors must consider and respond to the risk of management override of internal controls, which is the intervention by management in handl ing financial information and making decisions contrary to internal control policy. • Re ven ue recognition : Auditors must cons ider and respond to the risk of management subversion of generally accepted accounting princip les in determining how and when revenue is recogn ized . • Significant estimates : Auditors must consider and respond to the risk of management bias in sign ifi can t accounting estimates. Financial statement areas containing significant estimates can include , bu t are not limited to , net pension liability/asset and related deferred inflows/outflow s , net OPES liability/asset and related deferred inflows/outflows , leases receivable and related deferred inflow s of resources , lease and subscription liabilities , right-to-use assets , depreciation and amortization expenses , and fair value measurements . We expect to begin our aud it on approximately April 15 , 2024. Scott Manno, CPA, CGMA , is the engagement partner and is responsible for supervising the engagement and signing the report or author izing another ind ividual to sign it. This information is intended so lely for the informat ion and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. Respectfully , -2- 13 ~ c C ar ncg lc D , ~u ltc I 00 San Bcrnm·d,no, C A 92 408 909 889 08 7 1 T 909 889 5361 F r :1 m scpa. nc:t PARTNERS .~l.tlf.l ·N f ·l,11111, ( I /\ ( C,i 11\ L,:,:.11.1 ~lu11hl 1 •~:., p,..., t ·l \ 1 r r ,r 1/\ e, V!if'HI J\ V\f>l(•h11 1 I /• f ll~/\ ( t ,1 l A l••-111\• 1/V .111, ¥P1\ l 1•.;, T ,.,1 dr•1 IV-1 nw ,n ( 1'1\ f -., 1,, B 11,1m1.1 V:11 I 1lt'l 11A !.,f·•Jr.., P.,t._o,h 1 1·1r11 1 t.P/\, '··1t,T ·P1·1 n, l:,1,,·-1 t t•J 1,•1 1 )' I <..tw.1 1 !',\ d':111•1("•1 !. ,.-" ,., MANAGER~ I STAFF ,~·oui~ 1 l y ..... I ,.,0 ' PA, MHI\ [::•,,.l y 1 M(•1 Pnf in -B.1r•r:•n.1. C I '.I,. j, 1111 1Il.1k l •.ll11du. CPA, 11'.'"J/'I j11lu Rudi l}!UI.~/ F· l f.'IH('\, 1~P/\ MS/\ D~)11H H,1c, CPA jdl1 cy t·k l ,;1 1n,t11. (:PA Mrnu<..i ·-Nysodn ( f A MEMBERS 1\111 ~•1 H.,111 II ,!,,ltlt•l•.• ,JI (-•11 1hr~1l '.')11hh( /.l.(UJU1l1 ;111rr, 11,:,1 •\~ Tlw .i\V /1/\ AJl1c11, t· /n' I /'I\ f.111 1,\ I ,)Ilk,! I 1,1 ')1d IP\V qf I ,11hr-rl r nl •lt< /\r1011n1 mtr, • Proud Member of AlliottGlobalAllianctf Ill ROG ER S, AND ERSO N , MALODY & SCO T T . L LP '1 1·'.lll l ll l •'1 11',i I(./\<' >IINl/\, ll'>. ,lt J, I ''ll' To the Board of Directors East Valley Water District Highland, California April 9 , 2024 The following represents our understanding of the services w e will provide the East Valley Water District. You have requested that we audit the financial statements of the business- type activities and the aggregate remaining fund information of the East Valley Water District (the District), as of June 30, 2024 , and for the year then ended and the related notes, which collectively comprise the District's basic financial statements as listed in the table of contents . We are pleased to confi rm our acceptance and our understanding of this audit engagement by means of this letter. The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor 's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS) and in accordance with Government Auditing Standards and the State Controller's Minimum Audit Requirements for California Special Districts will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Accounting principles generally accepted in the United States of America (U.S. GAAP), as promulgated by the Governmental Accounting Standa rds Board (GASS) require that supplementary information , such as management's discussion and analysis (MD&A) and budgetary comparison information be presented to supplement the basic financial statements . Such information, although not a part of the basic financial statements, is required by the GASS , who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America, (U.S. GAAS). These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation , and comparing the information for consistency with management's responses to our inquiries . We will not express an opinion or provide any form of assurance on the RSI. -1- STAB ILITY ACC URACY TRUST Board of Directors East Valley Water District The following RSI is required by U.S . GAAP . This RSI will be subjected to certain limited procedures but wi ll not be audited: 1. Management's Discussion and Analysis 2. Pension Related Schedules 3. OPEB Related Schedules Supplementary information other than RSI will accompany the District's basic financia l statements. We will subject the following supplementary information to the auditing procedures applied in ou r audit of the basic financia l statements and perform certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the basic financia l statements or to the basic financia l statements themselves , and additiona l procedures in accordance w ith U.S . GAAS . We intend to provide an opinion on the following supplementary information in re lation to the basic financia l statements as a whole : 1. Comb ining Statements/Schedules Also, the document we submit to you will include the following other additional information that will not be subjected to the auditing procedures applied in our audit of the basic financial statements: 1 . Introductory Section 2. Statist ical Section Auditor Responsibilities We will conduct our audit in accordance with GAAS , Government Auditing Standards and the State Controller's Minimum Audit Requirements for California Special Districts. As part of an audit in accordance with these standards , we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financia l statements , whether due to fraud or error, design and perform audit procedures responsive to those risks, and obta in audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion , forgery , intentional omissions, misrepresentations, or the override of controls . • Obtain an understanding of the system of internal control in order to design audit procedures that are appropriate in the circumstances , but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal contro l relevant to the audit of the financia l statements that we have identified during the audit. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluate the overall presentation of the financial statements, including the disclosures, and whether the financ ial statements represent the underly ing transactions and events in a manner that achieves fair presentation . • Conclude , based on the audit evidence obtained, whether there are conditions or events , considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of time. -2- Board of Directors East Valley Water District Because of the inherent limitations of an audit , together with the inherent limitations of internal control , an unavoidable risk that some material misstatements may not be detected exists , even though the audit is properly planned and performed in accor dance with GAAS , Government Auditing Standards and the State Controller's Minimum Audit Requirements for California Special Districts . Please note that the determination of abuse is subjective and Government Auditing Standards does not require auditors to detect abuse . Our respons ibility as auditors is limited to the period covered by our audit and does not extend to any other periods. Compliance with Laws and Regulations As previously discussed , as part of obtaining reasonable assurance about w hether the basic financia l statements are free of material misstatement, we will perform tests of the District's compliance with the provisions of applicab le la ws , regulations , contracts , and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Management Responsibilities Ou r audit w ill be conducted on the bas is that management and , when appropriate , those charged with governance acknowledge and understand that they have responsibility : • For the preparation and fair presentation of the basic financial statements in accordance with accounting principles generally accepted in the United States of America ; • For the design , implementation , and maintenance of the system of internal control relevant to the preparation and fair presentation of basic financial statements that are free from material misstatement, whether due to error, fraudulent financial reporting, misappropriation of assets , or vio lations of laws , governmental regu lations, grant agreements, or contractual agreements; and • To provide us with : -Access to all information of which management is aware that is relevant to the pr epa r ation and fair presentation of the basic financial statements such as records , documentation , and other matters ; -Add iti ona l information that we may request from management for the purpose of the audit; -Unr estricted access to persons within the District and others from whom we determine it necessary to obtain audit evidence . -A written ackno wledgement of all the documents that management expects to issue that w ill be included in the annual report and the planned tim ing and method of issuance of that annua l report; and -A fina l vers ion of the annual report (including all the documents that, together , comprise the annua l report) in a time ly manner prior to the date of the auditor's report. • For including the auditor's report in any document containing basic financial statements that ind icates that such basic financial statements have been audited by us ; • For identifying and ensuring that the District complies with the laws and regulations applicable to its activities ; • For adjusting the basic financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immateria l, both individually and in the aggregate , to the basic financial statements as a whole; and • For acceptance of nonattest services , including identifying the proper party to oversee nonattest work; • For m ainta ining adequate records , selecting and applying accounting principles , and safeguarding assets ; -3- Board of Directors East Valley Water District • For informing us of any known or suspected fraud affecting the District involving management, employees w ith significant role in the system of internal control and others w here fraud could have a materia l effect on the financials ; and • For the accuracy and completeness of all information provided . W ith regard to the supplementary information referred to above, you acknow ledge and understand your responsibility: (a ) for the preparation of the supplementary information in accordance w ith the applicable criteria ; (b ) to provide us wi th the appropriate written representations regarding supplementary information ; ( c) to inc lude our report on the supplementary information in any document that contains the supplementary information and that indicates that we have reported on such supplementary information ; and ( d } to present the supp lementary information w ith the aud ited basic financial statements , or if the supplementary information w ill not be presented with the audited basic financial statements , to make the audited basic financia l statements readi ly availab le to the intended users of the supplementary information no later than the date of issuance by you of the supplementary information and our report thereon . As part of our audit process , we will request from management and , when appropriate , those charged w ith governance, written confirmation concerning representations made to us in connection w ith the audit. Nonattest Services W ith respect to any nonattest services we perform , we will not assume management responsibilities on behalf of the District. However, we will provide advice and recommendations to assist management of the District in perform ing its responsibilit ies . The follo wing are nonattest services that may be requested by the District, which can include , but is not limited to the foll owing : • To propose adjusting or correcting journal entries to be review ed and approved by , • To assist management with drafting the financial statements based on the District 's trial balances , • Bookkeeping serv ices , • Add it iona l financia l statement preparat ion , • Annua l Financia l T ransaction Report preparation , • To assist management with completing the Data Collection Form and submitting to the Federal Aud it Clearinghouse , T he District's management is responsible for (a } making all management decisions and performing all management functions ; (b } assigning a competent individual to oversee the services ; (c) eva luating the adequacy of the services performed ; (d) evaluating and accepting responsibility for the results of the serv ices performed; and (e ) des igning , implementing , and ma i ntain i ng the system of internal control , including t he process used to monitoring the system of internal control. Our responsib ilit ies and lim itations of the nonattest services are as follow s: • We wi ll perform the services in accordance w ith appl icable professional standards , and • The nonattest serv ices are limited to the services previously outlined . Our firm , in its sole profess iona l j udgment, reserves the right to refuse to do any procedure or take any action that could be construed as making management dec isions or assuming management responsibilities , including determin ing account coding and approving journa l entries. -4- Board of Directors East Valley Water District Reporting We will issue a written report upon completion of our audit of the District's basic financial statements . Our report will be addressed to the Board of Directors of the District. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances , it may be necessary for us to modify our opinion , add an emphasis-of-matter or other-matter paragraph(s) to our auditor's report , or if necessary , withdraw from the engagement. If ou r opin ion on the bas ic financial statements are other than unmodified, we will discuss the reasons with you in advance. If, fo r any reason , w e are unable to complete the audit or are unable to form or have not formed an opin ion , w e may decline to express an opinion or to issue a report as a result of this engagement. In accordance with the requ irements of Government Auditing Standards , we will al so issue a written report describing the scope of our testing over interna l contro l over financial reporting and over compl iance with laws , regu lations , and provisions of grants and contracts , including the results of that testing . However, providing an op inion on interna l control and compliance will not be an objective of the audit and , therefore , no such opinion will be expressed. Other We understand that your employees will prepare all confirmations we request and will locate any documents or support for any other transactions we select for test ing . If you intend to publish or otherwise reproduce the basic financial statements and make reference to our fi rm , you agree to provide us with printers ' proofs or masters for our review and approval before printing . You also agree to provide us with a copy of the final reproduced material for our approva l before it is distributed . Regarding the electronic dissemination of audited financial statements, including financia l statements pub lished electron ically on yo ur Internet website , you understand that electronic sites ar e a means to distribute information and , therefore , we are not requ ired to read the information contained in these sites or to consider th e consistency of other information in the electronic site with the orig inal document. Profess iona l standards prohibit us from being the sole host and/or the sole storage for your financial and non-financial data . As such , it is your responsibility to maintain your original data and records and we cannot be respons ible to mainta in such orig inal information . By signing this engagement letter, you affirm that you have all t he data and records required to make your books and records complete . If it is determined a Single Audit is needed subsequent to this engagement letter, we will provide the District with another engagement letter covering the terms and conditions related to a Single Audit and the Uniform Guida nce . Provisions of Engagement Administration, Timing and Fees During the course of the engagement, we may commun icate with you or your personnel via fax or e-mail , and you shou ld be aware that commun ication in those mediums contains a risk of misdirected or intercepted communications. Our firm may transmit confidentia l information that you provided us to third parties in order to facilitate de livering our services to you. For example , such transmissions might include , but not be limited to exchang ing documents via our secure portals. We have obtained confidentia lity agreements wi th al l our service providers to maintain the confidentiality of your information and we will take reasonable precautions to determ ine that they have the appropriate procedures in place to prevent the unauthorized release of confidentia l information to others. We will remain responsible for the work provided by any third-party service providers used under this agreement. By your signature below , you consent to having confidential -5- Board of Directors East Valley Water District information transmitted to entities outside the firm . Please feel free to inquire if you would like additional information regarding the transmission of confidential information to entities outside the firm. Scott Manno, CPA, CGMA is the engagement partner for the audit services specified in this letter. His responsibilit ies include supervising our firm's services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the audit report. Our fee for the audit is found under attachment A . We wil l notify you immediately of any circumstances we encounter that could significantly affect th is initial fee estimate. Whenever possible, w e will attempt to use the District's personnel to assist in the preparation of schedules and analyses of accounts. This effort could substantially reduce our time requirements and facilitate the timely conclusion of the audit. Further, we will be availab le during the year to consu lt with you on financial management and accounting matters of a routine nature. Our fee for this engagement assumes the following: the District will be adequately prepared for the audit and the District 's financial operations and working trial balance will be consistent from year to year . If, after we rece ive the working trial balances, we notice there are excessive new accounts over the prior year , or there are excessive subsequent journal entries , or prepared by client workpapers that do not agree to the working tr ial balances, or there are new funds/functions within the District, or other changes that necessitate a sign ificant amount of time to address , we will need to come to an agreed-upon change order to address any possible additional costs incurred by the firm. If the need for additional work does come to our attention , w e will immediately notify District staff. If you choose to have us perform the additional work , then such work will be performed at the same hourly rates applicable to the audit work and set forth in an addendum to the contract between the District and our firm . Management is also responsible for the implementation of new standards issued by the Governmental Accounting Standards Board. We will provide reasonable assistance in the preparation of the items noted herein , but any significant time needed to complete the financial statements will be billed separately . Our proposed fee is also dependent on all items requested be ing completed in the format requested or in a mutually agreed-upon format and uploaded to the Engagement Organizer hosted by our firm in a timely manner in accordance with the agreed-upon audit timeline . Government Auditing Standards require that we document an assessment of the skills, knowledge , and experience of management, should we participate in any form of preparation of the basic financial statements and related schedules or disclosures as these actions are deemed a non-audit service . During the course of the audit we may observe opportunities for economy in, or improved controls over , your operations . We will bring such matters to the attention of the appropriate level of management, either orally or in writing . You agree to inform us of facts that may affect the basic financial statements of which you may become aware during the period from the date of the auditor's report to the date the financial statements are issued. We agree to retain our audit documentation or work papers for a period of at least seven years from the date of our report. Upon expiration of this period , we will be free to destroy our records re lated to the engagement. However, we do not keep original client documents, so we will return those as they are used during each engagement. It is management's responsibility to retain and protect the records for possible future use , including examination by regulators and federal agencies. We require that a copy of the final trial balance (i.e., a trial balance ready to audit) be delivered to us at least 10 business days prior to the start of the audit, otherwise we may reschedule the start of the audit. -6- Board of Directors East Valley Water District At the conclusion of our audit engagement, we will communicate to the Board of Directors the fo llowing significant f indings from the audit: • Our vie w about the qual itative aspects of the District's significant accounting practices ; • Significant difficulties , if any , encountered during the audit; • Uncorrected misstatements , other than those we believe are trivial, if any ; • Disagreements w ith management, if any; • Other find ings or issues, if any , arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regard ing their oversight of the financial reporting process ; • Material , corrected misstatements that were brought to the attention of management as a result of our audit procedures; • Representations we requested from management; • Management's consultations with other accountants , if any; and • Significant issues , if any , arising from the audit that were discussed , or the subject of correspondence, w ith management. The aud it documentation for this engagement is the property of our firm and constitutes confidential information . However , we may be requested to make certain audit documentation availab le to regulator 's, federal agencies , and to the U.S. Government Accountability Office pursuant to authority given to it by law or regulation , or to peer reviewers. If requested , access to such audit documentation w ill be provided under the supervis ion of our firm 's personnel. Furthermore , upon request , we may provide copies of selected aud it documentation to the regulators . The regulator 's may intend , or decide , to distribute the cop ies of information conta ined therein to others , including other governmental agencies. In accordance with the require ments of Government Auditing Standards , w e have attached a copy of our latest externa l peer review report of our firm for your consideration and fi les. Non-solicit Clause We va lue each and every one of our clients as w ell as each and every one of our employees . We have spent a great deal of time and resources to locate , train and retain our employees. We respectfully request that you do not so licit our employees to work for you. If you do hire one of our employees w ithin 2 years of when they last worked for our firm , we will be due a finder 's fee equal to 50% of the annual salary they were earning as of their last day of employment. Payment will be due within 10 days of your receipt of our invoice . To ensure that our independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substant ive employment discussions with any of our personne l. -7 - Board of Directors East Valley Water District International Alliance Membership Our fi rm is an independent member firm of Alliott Global Alliance , which is an international alliance of independent accounting, law, and specialist firms. Alliott Global Alliance and its member firms are legally distinct and separate entities. These entities are not and shall not be construed to be in the relationship of a parent firm, subsidiary, partner, joint venture, agent, or a network. No Alliott Globa l Alliance member firm has any authority (actual, apparent, implied, or otherNise) to obligate or bind Alliott Global Alliance or any other Alliott Global Alliance member firm in any manner whatsoever. Equally, neither Alliott Global Alliance nor any other member firm has any authority to obligate or bind us or any other member firm. Al l Alliott Global Alliance members are independent firms, and as such, they each render their services entirely on the ir own account (including benefit and risk). In connection with the engagement contemplated by this letter or any other services from time to time prov ided by us, we may seek advice from or may recommend the retention of an Alliott Globa l Alliance member firm. Alliott Global Alliance and its other member firms shall have no li ability for advice rendered by us or such consulted or retained Alliott Global Alliance member firm. Nor sha ll we have liability for advice rendered by any of the other Alliott Global Alliance member firms, even if consul ted or recommended to you by our firm. Please electronica lly sign this letter to indicate your acknowledgement of, and agreement with, the arrangements for our audit of the financial statements, including our respective responsibilities. Please download a copy of the letter for your records once you have completed the signature process . As a reminder , we will not initiate services until we receive the signed letter. We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff. Respectfully . RESPONSE: This letter correctly sets forth our understanding. Acknowledged and agreed on behalf of the East Valley Water District by: N $11._1;, W rO#!PfiJtS ame: ----'-/ _______________ _ Titl e: Chief Financial Officer Da te: 04/16/2024 -8- Service East Valley Water District Schedule of Audit Fees For the year ended June 30 , 2024 Financial Audit of the District Annua l State Controller's Report Compl iation of the Annual Report Continuing Disclosure Annual Report Si ngle Audit* and related reports (if required) Total fo r fi scal year (not-to-exceed) Attachment A 2024 $ 31,625 1,580 3 ,680 1,420 5 ,250 $ 43 ,555 * = Fee for first major program , each add itional major program is $3,250 . Grant Bennett Associates A PROFESSIONAL CORPORATION Report on the Firm's System of Qua li ty Control June 4, 2021 To the Partne rs of Rogers , Anderson, Malady & Scott, LLP, and the Peer Review Committee of the California Soc i ety of CPAs We have r eviewed the system of quality control fo r the accounting and auditing practice of Rogers, Anderson, Malody & Scott, LLP (the firm) in effect for the year ended November 30, 2020. Our peer review was conducted in acco r dance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the Am erican Institute of Certified Public Accountants (Standard s). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as desc ribed in the Standards may be found at www.aicpa.org/prsummary. The summary also i ncludes an exp lanation of how engagements identified as not performed or reported in conformity with applicab le profess ional standards, if any, are evaluated by a peer reviewer to determine a peer review rating . Firm 's Responsibility The firm is responsib le for designing a system of quality control and complying with it to provide the firm with reasona ble assurance of performing and reporting in conformity with applicable professional standa rds in all m aterial respects. The fi rm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or repo rt ed in conformity with professional standards, when appropriate, and for remed iating weaknesses in its system of quality control, if any. Peer Reviewer's Responsibility Our responsibi lity is to express an opinion on the design of the system of quality contro l and the firm 's co mpl iance t herewith based on our review . Re quired Se lections and Considerations Engagements selected for review in cl uded engagements performed under Government Auditing Standards, incl uding a compliance audit under the Single Aud it Act, and an audit of an employee benefit plan . As a part of ou r peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Opinion In ou r opi nion, the system of qu ality control for the accounting and auditi ng practice of Rogers, Anderson, Malady & Scott LLP in effect for the year ended November 30, 2020, has been suitably des igned and complied with to p rovide the firm with reasonable assu rance of performing and reporting in confor mity w ith applicab le profess iona l standard s i n all material respects. Firms can receive a rating of pass , pass with deficiency(ies) or fai l. Rogers , Anderson, Ma lady & Scott, LLP has received a peer review rating of pass . GRANT BENNETT ASSOCIATES A PROFESSIONAL CORPORA TION Certified Public Accountants GBA C P A www .gbacpa .com 10850 Gold Center Drive. Sui t e 260 Rancho Cor d ova, CA 95670 916/922 -5109 FAX 916/641 -5200 Pri ncev ill e, HI 96722 888/769 -7323 East Valley Water District Finance Committee Meeting July 9, 2024 Interim Fieldwork – week of April 15th •Interviews with staff to update understanding of processes: o Accounts payable/Cal-cards o Billing and collections o Payroll o Cash and investments o Journal entries and financial reporting •Various tests to ensure controls are operating effectively, based on our understanding obtained in interviews above: o Reviewing invoices for proper approvals o Testing Cal-card purchases o Payroll is properly approved, timesheets are reviewed o Segregation of duties within the various modules (IT) o Bank reconciliations are prepared and reviewed in a timely manner •Reading through the minutes of Board meetings to identify any significant contracts, transactions, etc. •Testing various contracts to determine whether purchasing policies were followed •Import of prior year trial balances and setup up groupings for financial statements Year-End Fieldwork – week of September 3th (after Labor Day holiday) •Various tests to ensure material account balances are not materially misstated: o Confirm cash, investment, debt balances with third parties o Agree receivables to subsequent collections/receipts o Ensure all material payables have been recorded as of June 30 o Perform analytical comparisons over revenues and expenses and drill into further details, if needed o Review support of additions and disposals of capital assets and CIP •Review of actuarial valuations for pension and OPEB liability support •Prepare draft financial statements based on agreed-upon timeline with management (to be discussed during interim fieldwork) Agenda Item #6 July 9, 20241 Meeting Date: July 9, 2024 Agenda Item #6 Informational Item Regular Meeting TO: Committee Members FROM: Director of Administrative Services SUBJECT: Workplace Violence Prevention Program RECOMMENDATION This agenda item is for informational purposes only, no action is required. BACKGROUND / ANALYSIS Under Senate Bill (SB) 553, most California employers are required to develop and implement a Workplace Violence Prevention Plan (Plan) by July 1, 2024. This legislation places a strong emphasis on employers to actively involve employees in the process of developing the Plan. The main components include developing and implementing a written Plan, being responsible for logging all workplace violence incidents, and conducting employee training. Over the past several months, staff have reviewed information on this new legislation and have sought guidance from the District’s safety consultant and Special District’s Risk Management Authority (SDRMA) to create a written Plan that complies with all requirements. East Valley Water District’s written Plan includes the following procedures: •Identifies the person responsible for implementing the Plan. •Lists how employees will be involved in the development of the Plan. •Accepting and responding to reports of violence and prohibiting retaliation. •Employee communication on reporting, the investigation process, and how findings are shared. •Response to actual or potential emergencies. •Training requirements. •Hazard assessments and hazard correction. •Post incident response and investigation. •Annual plan review. A component of the Plan includes a Violent Incident Log (Log). The District must record any workplace violence incidents that occur on the Log. The information on the Log includes: •Date, time, and location where incident occurred. •Type of violence. Agenda Item #6 July 9, 20242 Meeting Date: July 9, 2024 Agenda Item #6 Informational Item •Detailed description of the incident (no identifying information to be included). •Classification of who committed the violence (coworker, customer, family, etc. •Consequences. The most important component of this legislation is that employees receive training on the Plan. Employees will receive training upon establishment of the plan, and annually thereafter. Training on the Plan will also be incorporated into our new-hire orientation program to ensure all new employees have a good understanding of the plan. Training will include the following: •Important definitions of workplace violence. •Reporting procedures. •Hazards and corrective measures. •How to seek assistance. •Information on the Log. •Strategies to avoid physical harm. This new Workplace Violence Prevention Plan policy replaces the previous policy 3.2 – Workplace Violence and Intimidation Policy. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service with Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts C. Promote a Positive Organizational Culture FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Kerrie Bryan Director of Administrative Services ATTACHMENTS Workplace Violence Prevention Plan Appendix A-C EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 1 of 10 1 6 7 8 Purpose The purpose of this policy is to establish a strong commitment to prohibit and prevent violence and intimidation in the workplace and provide a safe and secure work environment for East Valley Water District employees. East Valley Water District encourages all employees to report as soon as possible any conduct that is believed to violate this policy. Policy East Valley Water District is committed to providing a work environment that is free of disruptive, threatening, or violent behavior involving any employee, appointed or elected official, volunteer, contractor, client, or visitor. Our policy is to establish, implement, and maintain an effective Workplace Violence Prevention Plan that addresses the hazards known to be associated with four types of workplace violence as defined by Labor Code Section 6501.9. Our written Plan is located at 31111 Greenspot Rd., Highland, CA. Definitions A.Emergency: Unanticipated circumstances that can be life threatening or pose a risk of significant injuries to employees or other persons. B.Engineering Controls: An aspect of the built space or a device that removes a hazard from the workplace or creates a barrier between the employee and the hazard. C.Log: The violent incident log required (Appendix A). D.Plan: The Workplace Violence Prevention Plan. E.Serious Injury or Illness: Any injury or illness occurring in a place of employment or in connection with any employment that requires inpatient hospitalization for other than medical observation or diagnostic testing, or in which an employee suffers an amputation, the loss of an eye, or any serious degree of permanent disfigurement, but does not include any injury or illness or death caused by an accident on a public street or highway, unless the accident occurred in a construction zone. F.Threat of Violence: Any verbal or written statement, including, but not limited to, texts, electronic messages, social media messages, or other online posts, or EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 2 of 10 1 6 7 8 any behavioral or physical conduct, that conveys an intent, or that is reasonably perceived to convey an intent, to cause physical harm or to place someone in fear of physical harm, and that serves no legitimate purpose. G.Work Practice Controls: Procedures and rules which are used to effectively reduce workplace violence hazards. H.Workplace Violence: Any act of violence or threat of violence that occurs in a place of employment. Includes, but is not limited to the following: ▪The threat or use of physical force against an employee that results in, or has a high likelihood of resulting in, injury, psychological trauma, or stress, regardless of whether the employee sustains an injury. ▪An incident involving a threat or use of a firearm or other dangerous weapon, including the use of common objects as weapons, regardless of whether the employee sustains an injury. ▪The following four workplace violence types: –Type 1 violence - Workplace violence committed by a person who has no legitimate business at the worksite and includes violent acts by anyone who enters the workplace or approaches employees with the intent to commit a crime. –Type 2 violence - Workplace violence directed at employees by customers, clients, patients, students, or visitors. –Type 3 violence - Workplace violence against an employee by a present or former employee, supervisor, or manager. –Type 4 violence - Workplace violence committed in the workplace by a person who does not work there but has or is known to have had a personal relationship with an employee. o Workplace violence does not include lawful acts of self-defense or defense of others. Responsibility and Authority Workplace Violence Prevention Plan Administrator EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 3 of 10 1 6 7 8 The Director of Administrative Services is the designated Workplace Violence Prevention Plan Administrator and has the authority and responsibility for developing, implementing, and maintaining this Plan. Managers and Supervisors Responsibilities include: •Implementing the Plan in their respective work areas. •Providing input to the Administrator regarding the Plan. •Participating in investigations of workplace violence reports. •Answering employee questions concerning this Plan. Employees Responsibilities include: •Complying with the Plan. •Maintaining a violence-free work environment. •Attending all training. •Following all directives, policies, and procedures. •Reporting suspicious persons in the area and alerting the proper authorities when necessary. Employee Active Involvement The District ensures the following policies and procedures to obtain the active involvement of employees and authorized employee representatives in developing and implementing the Plan. •Management will work with and allow employees and authorized employee representatives to participate in: –Identifying, evaluating, and determining corrective measures to prevent workplace violence. This includes, but is not limited to, periodic safety EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 4 of 10 1 6 7 8 meetings with employees and their representatives to discuss the identification of workplace violence related concerns and hazards, and to evaluate the concerns to identify corrective action. –Designing and implementing training by encouraging employees to provide feedback and suggestions to help customize the training materials and sessions. –Reporting and potentially assisting in the investigating of workplace violence incidents. •Management will ensure that all workplace violence policies and procedures within this Plan are clearly communicated and understood by all employees. Managers and supervisors will enforce the rules fairly and uniformly. •All employees will follow all directives, policies, and procedures, as outlined in this Plan, and assist in maintaining a safe work environment. •The Plan shall be in effect at all times and in all work areas and be specific to the hazards and corrective measures for each work area and operation. Compliance The Administrator is responsible for ensuring the Plan is clearly communicated and understood by all employees. The following techniques are used to ensure all employees understand and comply with the Plan: •Informing all employees of the Plan during new employee safety orientation training and ongoing workplace violence prevention training. •Providing comprehensive workplace violence prevention training to managers and supervisors concerning their roles and responsibilities for Plan implementation. •Evaluating employees to ensure their compliance with the Plan, and recognizing employees who demonstrate safe work practices that promote the elements of the Plan. •Disciplining employees for failure to comply with the Plan in accordance with the EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 5 of 10 1 6 7 8 compliance requirements outlined in our District’s Injury & Illness Prevention Program. Communication We recognize that open, two-way communication between our management team, staff, and other employers, about workplace violence issues is essential to a safe and productive workplace. The following communication system is designed to facilitate a continuous flow of workplace violence prevention information between management and staff in a form that is readily understandable by all employees, and consists of the following: •New employee orientation includes workplace violence prevention policies and procedures. •Workplace violence prevention training, at least annually. •Regularly scheduled meetings that address security issues and potential workplace violence hazards. •Effective communication between employees and supervisors about workplace violence prevention and concerns. •Posted or distributed workplace violence prevention information. •Encouraging employees to inform their supervisors about any threats of violence or workplace violence. Employees may use the Workplace Violent Incident Log (Appendix A) to assist in their reporting of incidents. No employee will be disciplined for reporting any threats of violence or workplace violence. •Employees will not be prevented from accessing their mobile or other communication devices to seek emergency assistance, assess the safety of a situation, or communicate with a person to verify their safety. Employees’ concerns will be investigated in a timely manner and they will be informed of the results of the investigation and any corrective actions to be taken. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 6 of 10 1 6 7 8 Workplace Violence Incident Reporting Procedures Employees should report all threats or acts of workplace violence to their supervisor or manager. The supervisor or manager will be required to inform the Administrator. In the event a supervisor or manager is not available, the employee can report an incident directly to the Administrator or Human Resources. Employees may report the incident anonymously by dropping off a written confidential letter in the Human Resources in-box, located outside of the Human Resources staff offices. A strict non- retaliation policy is in place. Emergency Response Procedures In the event of an actual or potential workplace violence emergency, the employee should determine the best immediate reporting option based on the situation and circumstances. The methods of reporting emergencies include, but are not limited to: –Dialing 911. –Immediately notify the manager, supervisor, Administrator, or Human Resources. Upon being notified of a workplace violence emergency, the Administrator or designated “person-in-charge” will determine if emergency procedures should be activated and if evacuation or shelter-in-place procedures should be implemented. Refer to Appendix C for procedures on how to respond to specific workplace violence emergency scenarios. Workplace Violence Hazard Assessment A Workplace hazard assessment will be conducted by the Administrator, and other selected employees, utilizing the Workplace Violence Prevention Hazard Assessment & Correction Form (Appendix B). An annual review of the past year’s workplace violence incidents will be conducted. Inspections are performed according to the following schedule: •When the Plan is first established. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 7 of 10 1 6 7 8 •Annually. •When new, previously unidentified workplace violence/security hazards are recognized. •After each workplace violence incident or threats occur. Workplace Violence Hazard Correction Workplace violence hazards will be evaluated and corrected in a timely manner. The Administrator will implement the following procedures to correct the identified workplace violence hazards: •If an imminent workplace violence hazard exists that cannot be immediately abated without endangering employee(s), all exposed employee(s) will be removed from the situation except those necessary to correct the existing condition. Employees necessary to correct the hazardous condition will be provided with the necessary protection, depending on the exposure. •All corrective actions taken will be documented and dated on the appropriate forms. Such as the Workplace Violence Hazard Assessment and Correction form (Appendix C), or other tracking measures. Post Incident Response and Investigation After a workplace incident, the Administrator or their designee will implement the following post-incident procedures: •Visit the scene of an incident as soon as safe and practicable. •Interview involved parties, such as employees, witnesses, law enforcement, and/or security personnel. •Review security footage of existing security cameras if applicable. •Examine the workplace for security risk factors associated with the incident, including any previous reports of inappropriate behavior by the perpetrator. •Determine the cause of the incident. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 8 of 10 1 6 7 8 •Take corrective action to prevent similar incidents from occurring. •Complete the Violent Incident log (see Appendix A) for every workplace violence incident and ensure corrective actions are taken. •Obtain any reports completed by law enforcement. Training & Instruction All employees, including managers and supervisors, will have training and instruction on general and job-specific workplace violence practices. Training will occur: •When the Plan is first established. •When hired. •Annually to ensure all employees understand and comply with the Plan. •When a new or previously unrecognized workplace violence hazard has been identified. Employee training on workplace violence will include: •A review of the Plan, how to obtain a copy of the Plan, and how to participate in the development and implementatoin of the Plan. •How to report workplace violence incidents or concerns to the District or law enforcement, without fear of reprisal. •Workplace violence risks that employees may encourter in their jobs. •How to recognize the potential for violence and escalating behavior. •General and personal safety measures. •Strategies to de-escalate behaviors and to avoid physical harm. •The District’s alerts, alarms, or systems that are in place to warn of emergencies. •Information about the District’s Employee Assistance Program. EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 9 of 10 1 6 7 8 •Information about the Violent Incident Log and how to obtain copies of records pertaing to completed logs, hazard identification, evaluation and correction, and training records. Employees will always have opportunities for interactive questions and answers with the Administrator or a person knowledgeable about the District’s Plan. Recordkeeping Records of violent incidents (Violent Incident Log), workplace violence hazard identification, evaluation and correction, and incident investigations will be maintained for (5) five years. No records shall contain medical information. Training for each employee, including the employee’s name, training dates, type of training, and training provider will be maintained for a minimum of (3) three years. Cal/OSHA Reporting of Work-Related Fatalities and Serious Injuries The District will immediately, but no later than 8 hours after awareness, report to Cal/OSHA any work-related death or serious injury or illness, including any due to workplace violence, of an employee occurring at the workplace or in connection with any employment. A serious injury or illness (CCR330) is defined as: –Any inpatient hospitalization for more than observation –Amputation –Loss of an eye –Serious degree of permanent disfigurement. It does not include any injury or illness or death caused by an accident on a public street or highway unless the accident occurred in a construction zone. Annual Review The District’s Workplace Violence Prevention Plan will be reviewed for effectiveness: EAST VALLEY WATER DISTRICT Administrative Policies & Programs Policy Title: Workplace Violence Prevention Plan Approval Date: Policy No: 3.2 Page 10 of 10 1 6 7 8 •At least annually. •When a deficiency is observed or become apparent. •After a workplace violence incident. •As needed. Review of the Plan will include measures outlined in the Employee Active Involvement section as well as the following: •A review of the incident investigations and violent incident log. •Assessment of the effectiveness of security systems, including alarms, emergency response, and available security personnel, if applicable. •Review if violence risks are being properly identified, evaluated, and corrected. •Any revisions should be made promptly and communicated to all employees. Original Approved: September 11, 2013 - Workplace Violence and Intimidation Policy Replaced: July 24, 2024 – Workplace Violence Prevention Plan Appendix A WORKPLACE VIOLENT INCIDENT LOG This form must be completed for every record of violence in the workplace. Incident ID # *: Date and Time of Incident: Department: * Do not identify employee by name, employee #, or SSI. The Incident ID must not reflect the employee’s identity. Describe Incident (provide detailed description and information on the violence incident type. Include additional pages if needed): Specific Location(s) of Incident & Workplace Violence Type (see definitions, enter 1, 2, 3 or 4) 1 2 3 4 1 2 3 4 Where Incident Occurred: Workplace Parking lot Outside of Building Outside of workplace Type of Incident (check as many apply): Robbery Grabbed Pushed Verbal threat/harassment Kicked Scratched Sexual threat/harassment/assault Hit with an object Bitten Animal attack Shot (or attempted) Slapped Threat of physical force Bomb threat Hit with fist Threat of use of weapon or object Vandalism (of victim’s property) Knifed (or attempted) Assault with a weapon or object Vandalism (of employer’s property) Arson Robbery Other: Workplace violence committed by: Family or friend Client Coworker Partner/Spouse Family or friend of client Manager/Supervisor Former Partner/Spouse Customer Stranger w/criminal intent Parent/Relative Family or friend of customer Other: Circumstances at time of incident: Employee performing normal duties Working in poor lighting Employee rushed Employee isolated or alone Unable to get help or assistance Working during low staffing levels Working in a community setting Working in unfamiliar/new location Other: Consequences of incident: Law enforcement/Security called? Yes No. If yes, explain: Were actions taken to protect employees from continuing threat or other hazards? Yes No. If yes, explain: Any injuries? Yes No. If yes, explain: Emergency medical responders contacted, including on-site First Aid/CPR? Yes No. If yes, explain: Did severity of injuries require reporting to Cal/OSHA? Yes No. If yes, enter date, time, and representative contacted: Completed by: Name: Title: Date: Signature Appendix B WORKPLACE VIOLENCE PREVENTION HAZARD ASSESSMENT & CORRECTION FORM Assessed by: Title: Location(s) Assessed: This checklist is designed to evaluate the workplace and job tasks to help identify situations that may place employees at risk of workplace violence. Step 1: Identify risk factors that may increase the District’s vulnerability to workplace violence events. Step 2: Conduct a workplace assessment to identify physical and process vulnerabilities. Step 3: Develop a corrective action Plan with measurable goals and target dates. STEP 1: IDENTIFY RISK FACTORS Yes No Risk Factors Comments: Does staff have contact with the public? Does staff exchange money with the public? Does staff work alone? Is the workplace often understaffed? Is the workplace located in an area with a high crime rate? Does staff enter areas with high crime rates? Does staff have mobile workplaces? Does staff perform public safety functions that might put them in conflict with others? Does staff perform duties that may upset people? Does staff work with people known or suspected to have a history of violence? Do any employees have a history of threats of violence? STEP 2: CONDUCT ASSESSMENT Yes No Building Interior Comments: Are employee ID badges required? Are employees notified of past workplace violence events? Are trained security personnel or staff accessible to employees? Are bullet resistant windows or similar barriers used when money is exchanged with the public? Are areas where money is exchanged visible to others? Is a limited amount of cash kept on hand with appropriate signage? Could someone hear an employee who called for help? Do employees have a clear line of sight of visitors in waiting areas? Do areas used for client or visitor interviews allow co-employees to observe problems? Are waiting and work areas free of objects that could be used as weapons? Is furniture in waiting and work areas arranged to prevent employee entrapment? Are clients and visitors clearly informed how to use the department services so they will not become frustrated? Are private, locked restrooms available for employees? Do employees have a secure place to store personal belonging? Yes No Building Exterior/Parking Lot Comments: Do employees feel safe walking to and from the workplace? Are the entrances to the building clearly visible from the street? Is the area surrounding the building free of bushes or other hiding places? Are security personnel provided outside the building? Is video surveillance provided outside the building? Is there enough lighting to see clearly? Are all exterior walkways visible to security personnel? Is there a nearby parking lot reserved for staff? Is the parking lot attended and secure? Is the parking lot free of blind spots and landscape trimmed to prevent hiding? Is there enough lighting to see clearly? Are security escorts available? Yes No Security Measures Comments: Is there a response Plan for workplace violence emergencies? Are there physical barriers? (between staff and clients) Are there security cameras? Are there panic buttons? Are there alarm systems? Are there metal detectors? Are there X-ray machines? Do doors lock? Does internal telephone system activate emergency assistance? Are telephones with an outside line programed for 911? Are there two-way radios, pagers, or cell phones? Are there security mirrors? Is there a secured entry? Are there personal alarm devices? Are there “drop safes” to limit available cash? Are pharmaceuticals secured? Is there a system to alert staff of the presence, location, and nature of a security threat? Is there a system in place for testing security measures? STEP 3: DEVELOP CORRECTIVE ACTION PLAN (Action Plan Types: BI – Building Interior, BE – Building Exterior, PA – Parking Area, SM – Security Measure) Type Action Item Person(s) Responsible Target Date Status Comments Appendix C WORKPLACE VIOLENCE EMERGENCY RESPONSE SCENARIOS & PROCEDURES WORKPLACE VIOLENCE ACTS OR THREATS Workplace violence is any act or threat of violence that occurs at the workplace. These incidents can include acts or threats of physical violence, intimidation, or harassment. Verbal abuse, physical assault, and homicide are all examples of workplace violence. We have zero tolerance toward all forms of violence. FOUR TYPES OF WORKPLACE VIOLENCE Type 1 violence - Workplace violence committed by a person who has no legitimate business at the worksite and includes violent acts by anyone who enters the workplace or approaches employees with the intent to commit a crime. Type 2 violence - Workplace violence directed at employees by customers, clients, patients, students, inmates, or visitors. Type 3 violence - Workplace violence against an employee by a present or former employee, supervisor, or manager. Type 4 violence - Workplace violence committed in the workplace by a person who does not work there but has or is known to have had a personal relationship with an employee. Workplace violence does not include lawful acts of self-defense or defense of others. EMPLOYEE WARNING SIGNS Often, warning signs are observed in employees, customers, and others who may behave violently on a work site. These behaviors may include: -Intimidation. -Rude behavior toward fellow employees. -Frequent arguments with co-workers or clients. -General aggressive behavior like hitting or kicking objects, breaking things, or screaming. -Acts of revenge like stealing or property damage. -Verbal wishes to harm other workers. While there is no perfect way to predict violence will occur, any combination of these behaviors may be a signal. Employees are encouraged to report these actions to the Administrator to prevent further escalation of any type of violent situation. WARNING SIGNS FROM CUSTOMERS •The person is not satisfied with any solutions you offer. •Unreasonably agitated. •Physical posturing (clenched fists). If the verbal confrontation starts to escalate, remain calm, courteous, and stay neutral. Let them know you are contacting a manager to further assist them. Trust your intuition to determine if help is needed. WHEN HELP IS NEEDED •Continue to try and help the person by listening and providing feedback until law enforcement has arrived. •If at any time you believe you are potentially in physical danger, yell for Help! •If you are being assaulted: -Yell for help. -Look for a way to escape. -Act with aggression. PERSONAL SAFETY •When leaving the building: -Be alert to your surroundings and look around the area outside before exiting the building. Do not use or look at your phone. -Attackers expect passive victims, so walk with a steady pace, appear purposeful, and project confidence. •While in your vehicle: -Have your keys in your hand as you approach your vehicle so that you do not have to search for them. -Before entering your vehicle quickly check the back seat and around the vehicle for anything unusual. -Always lock your car doors as soon as you enter the vehicle. ACTIVE SHOOTER The three most common response options for an active shooter event are evacuate, hide out, or take action. During an active shooter event, employees need to be able to determine their best course of action for the situation they are facing. CHARACTERISTICS OF AN ACTIVE SHOOTER SITUATION An active shooter is an individual actively engaged in killing or attempting to kill people in a confined and populated areas, typically through the use of firearms. Victims are typically selected at random. The event is unpredictable and evolves quickly. Law enforcement is usually required to end an active shooter situation. HOW TO RESPOND 1.EVACUATE • Have an escape route in mind. •Leave immediately. •Keep hands visible. 2.HIDE OUT •Hide in an area out of the shooter’s view. •Block the entry to your hiding place and lock doors, if possible. •Silence your cell phone. 3.TAKE ACTION •Last resort when your life is in imminent danger. •Attempt to incapacitate the shooter. •Act with physical aggression and throw items at shooter. •Have an escape route in mind. CALL 911 WHEN IT IS SAFE TO DO SO When law enforcement arrives remain calm and follow all instructions. •Put down any items in your hands (i.e., bags, jackets). •Raise hands and spread fingers. •Always keep your hands visible. •Avoid quick movements toward officers. •Avoid pointing, screaming or yelling. •Do not stop to ask officers for help or direction when evacuating. Information to provide law enforcement when asked: •Location of the active shooter. •Number of shooters. •Physical description of shooters. •Type of weapons if known. Training resource: –Department of Homeland Security –DHS Active Shooter Preparedness Video BOMB THREAT Most bomb threats are false and primarily intended to elicit a response from building occupants. However, no bomb threat should be assumed fake. If a potentially harmful device is found, call 911 for assistance. PHONE THREAT • Remain calm. • Immediately use the Bomb Threat Checklist for guidance and to document the call. • After the caller has ended the call, notify the Administrator. • If the threat was left on your voicemail, do not erase and immediately notify the Administrator. WRITTEN THREAT • Handle the document as little as possible and immediately notify the Administrator. • If the threat should come via e-mail, save the information. POSSIBLE EVACUATION • The Administrator will call law enforcement and follow their instructions. • The decision to evacuate is handled on a case-by-case basis on instructions given by law enforcement. BOMB THREAT CHECKLIST REMAIN CALM Time call received: Time call ended: Document any information from the phone display window: Engage caller as long as possible and document their words: Attempt to obtain information about the device: When will the device detonate or activate? Where is the device located? What kind of device is it? What does the device look like? Voice Description Male Female Young Adult Senior Calm Nervous Accent? Yes No Describe: Did you recognize the voice? Who? Did caller have knowledge of building? Unusual phrases: Any background noise or distinctive sounds? Name of person received call CIVIL UNREST Civil unrest events are often associated with riots, looting, or protests. In these instances, sheltering-in-place is an action taken to protect the building occupants from external hazards, minimizing the chance of injury and/or providing the time necessary to allow for a safe evacuation. SHELTER IN PLACE If there is a need to shelter-in-place the Administrator or person-in-charge will advise employees and guests of the emergency. Please note employees and guests cannot be forced to shelter-in-place. •The person-in-charge will collect the names of everyone in the shelter area. •If possible, the business voicemail recording will be updated to indicate the building is closed due to the emergency. •If the civil unrest includes hazardous chemicals, the HVAC systems may be shut off. •If in danger of broken glass, window shades will be closed. •Emergency supplies will be moved to the shelter area. •The District will listen/read available mediums (radio, internet) for further instructions until we are told all is safe or to evacuate. MEDICAL EMERGENCY CPR/AED NON-Trained Responder: •Call 911 and designate a person to direct EMS personnel as they arrive. •Do not move person unless absolutely necessary. Trained and Certified CPR Responder Only: •Designate someone to call 911 and direct EMS when they arrive. •Check the person for responsiveness. •Conduct a primary assessment (breathing) while checking responsiveness. •Initiate CPR and/or AED if necessary. FIRST AID ONLY Non-Trained First Aid Responder: •Call 911 and designate a person to direct EMS as they arrive. •Do not move person unless absolutely necessary. •Use universal precautions, such as disposable gloves, face mask if comforting person while waiting. Trained First Aid Responder Only: •Designate someone to call 911 (if necessary) and direct EMS as they arrive. •Do not move the person unless absolutely necessary. •Use universal precautions, such as disposable gloves, face mask. •Follow any directions provided by the 911 operator. •Designate a person to direct EMS personnel as they arrive. •Provide person information to the EMS personnel. SUSPICIOUS PACKAGE Explosives or other life-threatening items can be enclosed in either a parcel or an envelope, and its outward appearance is limited only by the imagination of the sender. However, suspicious packages have exhibited some unique characteristics that might assist you. To apply these factors, it is important to know the type of mail normally received. CHARACTERISTICS TO LOOK FOR IN A SUSPICIOUS PACKAGE OR LETTER •Restricted endorsements such as "personal" or "private." This is important when the addressee does not normally receive personal mail at the office. •The addressee's name and/ title might be inaccurate. •Distorted handwriting, or the name and address might be prepared with homemade labels or cut- and-paste lettering. •Protruding wires, aluminum foil or oil stains visible. •Emit a peculiar odor. •Envelope might feel rigid or appear uneven or lopsided. •Unprofessionally wrapped with several combinations of tape. Might be endorsed "Fragile-Handle With Care" or "Rush-Do Not Delay." •Making a buzzing or ticking noise or sloshing sound. IF YOU SUSPECT A SUSPICIOUS PACKAGE OR LETTER •Do not take a chance. Immediately call 911. •Do not move, alter, open, examine, or disturb the article. •Do not put in water or a confined space such as a desk drawer or filing cabinet. •Isolate the suspicious package or article and clear the immediate area until law enforcement arrives.