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Auditor: Agua SUD ran $1.3 million operating deficit last year

The Agua Special Utility District ran a roughly $1.3 million operating deficit last year, according to an audit approved by the board on Monday.

Ricky Longoria, a partner at McAllen-based accounting firm Burton, McCumber and Longoria, briefed the utility board on the audit Monday afternoon.

aguasud“I would ask you all, just as you move forward, to pay attention to those numbers because that is what I consider to be your bread and butter, right? You all bill for your services for water and sewer. And there is a cost associated with providing that service. And so, ideally, it would seem to me that you would want that to be break even or positive, right?”

Longoria recommended the utility board discuss the operating deficit with management.

“Whether it’s on the revenue side or whether it’s on the expense side, but at the net — at the end of the day — you should work towards making that a positive number, not a negative number,” Longoria said.

The utility board approved the audit without any discussion and didn’t ask Longoria any questions.

Overall, though, the utility district had a $3.6 million increase in net position, Longoria said.

How the utility district ran an operating deficit and had an increase in net position remains unclear.

Members of the utility board, including board President Roger Hernandez III and board Director Homer Tijerina, who represents rural Hidalgo County customers, wouldn’t allow the Progress Times to review copies of the audit report after the meeting.

Attorney Frank Garza, who represents the utility district, asked the Progress Times to file a public information request.

By Thursday morning, the Progress Times print deadline, the utility district hadn’t responded to the request.

Longoria said the utility district cooperated with the
audit and thanked administrators for taking the time to pull documents and provide other information.

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