20260901Compliance Filing.pdf

RECEIVED
September 01, 2026
IDAHO PUBLIC
UTILITIES COMMISSION
s
CAPITOL
WATER CORP.
www.capitolwatercorp.com
CAPITOL WATER CORPORATION
FINANCIAL POLICIES AND PROCEDURES
2026
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE

PURPOSE
Capitol Water Corporation is a water utility company governed by the Idaho Public Utilities
commission. We are committed to utilizing proper financial practices to help prevent and
detect errors and fraud. Good financial practices also assure our customers of fair and
just billing and information for the services we provide.
I. GENERAL PRACTICES
Review of risks. These policies were drafted after consideration of the risks associated
with the various aspects of our financial operations to enact policies and procedures
designed to minimize those risks.
The board will review these policies each year to consider whether the risks have changed,
at the annual board meeting in April of each year. Such changes may include receipt of
grant monies or receipt of grant monies with restrictions, a change in the laws regulating
our business, hiring of new employees or a major change in operation. If so, the board will
need to identify any new risks and adopt appropriate procedures to minimize those risks.
The board will seek out professional consultants if necessary to ensure that it is properly
addressing the risks associated with any changes to the operation or procedures in place.
Segregation of roles.The board acts in the authorization role when it approves a budget or
makes a decision on purchasing major equipment, services or equipment repair and
maintenance.
There are several fiscal"roles" in our corporation. Custody, authorization, execution and
monitoring.
Custodial Role:This person approves the payment of a bill and provides authorization.
Execution Role:This person reviews and prepares the checks for signatures by an
authorized check signer. Capitol Water has 2 authorized check signers. Bills or payments
to be made are authorized bythe board or a designated individual(s).
All bills or payments are assigned a general account number, designated bythe IPUC, and
entered into the billing software, related to the service address. Payments of general billed
services for CWC, reference a chart of accounts approved by the IPUC. Capitol Water
utilizes the cloud version of Quick Books.
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE

Segregation of roles. (Continued)
Monitoring Role: Capitol Water utilizes currently, Coles-Reinstein Accounting firm for
monitoring and reconciliation of the bank statements. Bank reconciliation is done monthly
on site at Capitol Water Corporation.
Coles Reinstein, PLLC
1211 W Myrtle, Suite 300
Boise, Idaho 83702
[phone]
The board also acts in a monitoring role when it reviews the monthly financial reports to
ensure compliance and accountability.
As much as possible, the board seeks to separate the responsibilities for the fiscal roles so
that at least two individuals fulfill these responsibilities. The same person does not
authorize, execute or monitor any transaction.
II. RECEIPT OF PAYMENTS
RISKS: Capitol Water Corporation recognizes that the payments we receive maybe stolen
or lost or that someone may be accused of stealing funds from the corporation. We also
face the risk that a payment may fail to be recorded or recorded incorrectly.
POLICY. All funds, whether check or cash, will be recorded to the appropriate/designated
account and deposited intact into the corporation's designated bank account, with no
monies removed to make payments or for other purposes. All cash receipts will be
deposited into the bank as soon as possible and designated on the deposit as cash.
PROCEDURES:
1. RECEIPT OF CHECKS IN THE OFFICE VIA BY CUSTOMER OR MAIL. All checks
received will be scanned or copied. These scans or copies will be kept as a separate
file in a designated folder.
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE

All checks will be endorsed immediately with an endorsement stamp which states for
"deposit only"that has the corporation's name and account number.
PROCEDURES: (Continued)
2. RECEIPT OF CASH IN THE OFFICE: Cash that is received in the office and is
accepted for payment, is handled as stated below.
a. A written receipt must be given to the person presenting the cash for payment. A
prenumbered receipt book is utilized that has duplication. No pages will be
removed from this receipt book.
b. The receipt book will be kept in a locked drawer along with the cash until a
deposit is made.
c. The receipt book will be compared to the bank's list of cash deposits during the
monthly bank reconciliation.
d. All documentation will be filed chronologically and alphabetically by customer's
name.
3. CREDIT CARD OR DEBIT CARD PAYMENTS: Currently no creditor debit card
payments are accepted. This is posted on the statements issued and our website
to further prevent any fraudulent activity.
III. DISBURSMENT OF FUNDS AND USE OF CORPORATE PROPERTY
RISKS:We know that we could risk our funds as they may be spent on unauthorized items
or theft can occur by taking blank checks or writing checks to payees who are not
authorized by the corporation. Or corporate assets could be used for personal purposes or
payments maybe improperly recorded.
POLICY. All disbursements will be issued on the corporation's check, to keep track of the
disbursement. The exception is the petty cash which is used for making change or
providing change.
PROCEDURES:
1. Bank accounts. Only the board has the authorization to approve and open any bank
accounts for the corporation.
2. Custody of checks. Only the designated office manager is authorized to have access
to the unused check stock. These checks are to be kept in a locked drawer. Only
accessible by the designated office manager.
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE

3. Check Authorization. All invoices will be provided to the office manager for review
and payment.
PROCEDURES: (Continued)
a. All invoices will be reviewed and checked for mathematical accuracy and
content. The invoice will be given the chart of accounts line number and other
needed information if required. Such as purpose, invoices that relate to the final
statement.
b. By approving the invoice, the office manager has reviewed the invoice for
accuracy and issued the invoice for approval and provided a red check mark.
c. Once a board member has approved the invoice a check is generated.
d. The generated check with the attached invoice will be presented for signature.
The signers are designated by the president of the corporation or board in the
future.
PROHIBITED PRACTICES:
• No invoices are to be paid without review and approval as stated previously.
• Blank checks cannot be signed in advance.
• Checks made out to bearer, etc.
PETTY CASH FUNDS
RISK: Payments by cash are prohibited, by the corporation.
POLICY. The Petty Cash Fund should only be used for providing change to customers who
pay cash. A record of the cash disbursements will be kept and logged daily. Designation of
the amount received and the amount in change recorded, along with date and account
number and name of the account holder.
PROCEDURES: Administration of Petty Cash Fund. The designated board member is
responsible for the administration of the Petty Cash Fund. This fund is funded with a check
made out to PETTY CASH FUND-Board member name and recorded.
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE

When the PETTY CASH FUND gets low, authorization needs to be provided by the Chairman
of the Board.
EXPENSE DISBURSEMENT
RISK: Procedures in place will negate and risk disbursements as previously stated in this
document.
POLICY. Board members and employees are entitled to be reimbursed for expenses related
to the corporation, that have occurred on behalf of the corporation. To receive
reimbursement, the following requirements need to be met.
• Your expense must be authorized by a board member in advance.
• Your expense(s) must have been incurred for goods or services purchased for the
corporation.
• If the expense is work travel, the travel must be for work related to the corporation
and requires preapproval. Reimbursement will be no more than the standard
mileage rate for businesses. Other travel expenses incurred will be evaluated at the
time travel is required.
PROCEDURES: To be reimbursed for expenses the following will apply.
1. DOCUMENTATION: Documentation needs to be submitted showing the date,
amount and what the expense was for including receipts or invoices. If the
purchase is NOT described on the receipt without an explanatory invoice, it will
not be accepted.
2. TIMELY SUBMISSION: You must submit your documentation within 30 days of
occurrence for payment.
PURCHASING
RISK: The corporation wants to ensure that all purchases on behalf of the corporation are
authorized by the board. Unauthorized purchases will not be reimbursed.
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE

POLICY. All purchases made on behalf of the corporation must be pre-approved or
authorized by the board.
PURCHASING (Continued)
PROCEDURES: Authorized purchases by employees must be below$1,000. (One thousand
dollars). If the amount required is higher than one thousand dollars, authorization must be
obtained by 2 board members.
IV. USE OF CORPORATE PROPERTY
RISKS: The corporation faces a risk that individuals will use corporate property without
authorization for personal purposes or gain.
POLICY. Property or equipment owned by the corporation may only be used for corporate
activities or activities approved by the corporation.
PROCEDURES: If a Board member or employee wants to use corporate property or
equipment for any purpose other than a corporate purpose, that individual must obtain
permission from the Board as a whole.
V. USE OF CORPORATE CREDIT CARD
RISK: The corporation needs to ensure that any obligation undertaken in the corporate
name is authorized by the corporation and is for the corporation and not a person use. Risk
occurs when an individual has use of a corporate credit card.
POLICY. The corporation will not allow the following on the corporate credit card.
• Personal purchases.
• Cash advances or loans.
• Payroll advances.
• Alcohol.
• Personal entertainment.
• Fuel for personal vehicles, not used for corporate requirements.
An individual purchase shall not exceed $500.00 (Five hundred dollars) unless
preauthorized.
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE

V. USE OF CORPORATE CREDIT CARD (continued)
PROCEDURES: In order to use the corporate credit card, the card holder must follow these
procedures.
1. Cardholder Agreement: Upon issuance of a corporate credit card, the cardholder
must sign a statement that the cardholder has read and understands the policies
and procedures in place.
2. Advance Approval:The board must be given advance notice of the potential
expense that is going to be occurred. The receipt must be provided that explains the
cost and what was provided.
3. Original Receipts. Receipts have to be provided that explain the cost and what was
provided. Credit card receipt is not acceptable but needs to be provided with actual
receipts listed regarding the charges.
4. Notification of Lost or Theft: The cardholder must immediately notify the bank and
corporation if the event that the card is lost or stolen.
VI. EMPLOYEE AGREENT OF THE CAPITOL WATER CORPORATION FINANCIAL
POLICIES AND PROCEDURES 2025
I, , an employee of CAPTIOL WATER CORPORATION, have read the Financial
Policy and Procedures and will comply.
Name of Employee: XXXXXX Position: XXXXXXXXXXXXXXXXXXXX
Signature of the above Employee: XXXXXXXXXXXXXXXXXXXX
Date: XXXXXXXXXXXXXXXX
CAPITOL WATER CORPORATION
FINANCIAL POLICYAND PROCEDURES 2026
EMPLOYEE SIGNATURE ACCEPTANCE