Prairie View Ranch Water District, CO: Financial Audits
January 2025 - March 2026
Entrance to the Prairie View Ranch community (photo credit: Prairie View Ranch Water District)
Community Description
The Prairie View Ranch Water District (PVRWD) serves the Prairie View Ranch development, which is located in the southwest corner of Morgan County, Colorado. The population is 135 and there are 48 active residential water service connections.
Project Scope
EPIC assisted the Prairie View Ranch Water District in completing three years of audit exemption applications and a financial statement audit for one fiscal year to comply with Colorado's audit requirements for water districts. By achieving state audit compliance, the District satisfied the financial capacity assessment required by the Colorado Department of Local Affairs, enabling the community to qualify for funding to support future regionalization with the Morgan County Quality Water District.
Background and Services Provided
The Prairie View Ranch Water District, which is served by three chlorinated groundwater wells, came under an enforcement order due to system deficiencies and exceedances of manganese, uranium, and volatile organic compounds (VOCs). Distribution system concerns include major leaks and pressure losses in the system caused by inadequate pipe materials, pump failures, and power loss. The system also lacks sufficient storage capacity and pump power to support fire flow. Due to persistent water quality concerns, and under the direction of the Colorado Department of Public Health and Environment (CDPHE), the District procured an engineer to conduct an alternatives analysis to explore potential solutions for a sustainable water supply for the Prairie View Ranch community. The preferred alternative that emerged from the study was to abandon the District's groundwater wells and construct an interconnect with the neighboring Morgan County Quality Water District through a wholesale interagency agreement. The District identified CDPHE Emerging Contaminants for Small and Disadvantaged Communities (ECSDC) grant funding as the funding source to support the project, along with potential future financing from the Drinking Water State Revolving Fund. In order to access this funding, as required by the Colorado Department of Local Affairs, the District must be compliant with Colorado’s state audit law.
EPIC supported the Prairie View Ranch Water District in achieving compliance with Colorado’s state audit law, enabling the District to qualify for ECSDC grant funding. EPIC sought approval from the Office of the State Auditor on guidelines to achieve audit compliance for the District. Additionally, EPIC solicited proposals from local Certified Public Accounting (CPA) firms and engaged a qualified firm to complete the necessary financial audit work, including the 2022 and 2023 audit exemption forms, the 2024 financial statement audit, and the 2025 audit exemption form. EPIC funded these services under a contract totaling $24,000.
Challenges and Opportunities
| Type of Challenge | Project Experience | Outcomes and/or Opportunities |
|---|---|---|
| Governance | A history of financial and operational mismanagement by private developers and previous Board leadership led to neglect of water infrastructure, ongoing compliance concerns and financial instability for the District. | PVRWD voted in new Board leadership in 2021 and have since been proactive in resolving compliance issues through operational changes, pursuing funding for regionalization, and building financial and managerial capacity. |
| Administration: Records | Due to previous Board leadership and financial management, several years of financial records were inaccessible. | EPIC sought approval from the Office of the State Auditor on guidelines to achieve audit compliance for the District in the absence of accessible financial records. |
| Financial: Audits | PVRWD was delinquent on audit exemption applications since 2019. | EPIC’s investment in contracting a qualified CPA with water district financial reporting experience supported the PVRWD in becoming current with audit exemptions and compliant with state audit law within four months. |
Project Next Steps
In March of 2026, PVRWD submitted the necessary documentation for approval of a $300,000 Tier 1 ECSDC grant to complete the final design of distribution system improvements and infrastructure needed to interconnect with the Morgan County Quality Water District. A design engineer has been selected, and design work is currently underway. Upon completion of the design phase, PVRWD intends to pursue Tier 2 ECSDC funding for construction. The construction project is anticipated to also include a financing component through the Drinking Water State Revolving Fund (DWSRF) loan program.