SUD Considers Solutions for Financial Oversight

by Leslie Lytle, Messenger Staff Writer

At the March 26 meeting of the Board of Commissioners of the Sewanee Utility District of Franklin and Marion Counties, SUD manager Ben Beavers reported on his inquiry into how SUD could satisfy the “segregation of duties” requirement of the state comptroller. Beavers also reviewed data on high unaccounted-for water loss and inflow and infiltration (I & I).

 At the February meeting, Beavers informed the board that a letter from the state comptroller cited SUD for inadequate “segregation of duties.” Beavers researched possible solutions. According to SUD’s auditor, SUD would need to hire an additional accounts payable clerk and an additional accounts receivable clerk to remedy the situation; outsourcing oversight to an accounting firm was not sufficient, the auditor said. 

On the auditor’s recommendation, Beavers will provide the comptroller with a detailed explanation of why hiring two additional employees is not financially viable for SUD. SUD also plans to more accurately document in-office procedures and procedure changes. The auditor indicated that if SUD showed good faith in attempting to address the issue, the utility would not be fined. Other small utilities have the same compliance problem, Beavers said.

In response to the ongoing trend of high unaccounted-for water loss, Beavers researched historical data. Unaccounted-for water loss is the difference between the amount of treated water SUD produces and the amount accounted for in metered sales. Unaccounted-for water loss spiked in 2006, Beavers said, then dropped off dramatically following major line renovation, but began to increase again in 2009 and has reached the 2006 level (29 percent for February). There are no pressure loss indicators suggesting leaks, Beavers said. He speculates aging, inaccurate meters are the cause and predicts the automatic meter reading technology SUD plans to implement will resolve the problem.

Increases in I & I (rain water infiltrating the sewer system) correspond directly with increases in rainfall, Beavers said. The extra water in the system increases demands on the wastewater treatment plant. Beavers said he observed that in certain areas the sewer lift stations begin pumping about 30 minutes after rain begins. Based on this information, he identified central campus and the Abbo’s Alley area as likely sources of high I & I. Beavers plans to use in-line flow meters to get more accurate data for these areas and others suspected of high I & I. SUD’s long-range budget calls for sewer repair over the next few years to reduce I & I.

The April 23 SUD commissioners meeting will be held at 5 p.m. in Blackman Auditorium. Reporting on a joint project, students from the University of the South and the University of Georgia will present a final proposal and budget for a trial constructed wetlands at SUD’s wastewater treatment plant. Beavers said he hopes the discussion will include funding and grant options. The public is invited.