Preston PSD1 submits corrective action plan to Public Service Commission
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By David Beard
dbeard@dominionpost.com
MORGANTOWN - The Preston County Public Service District No. 1 board has submitted its corrective action plan to the Public Service Commission - a plan recommended by PSC staff and approved by an administrative law judge to correct deficiencies in the board’s performance.
Staff presented the plan to the PSC on July 20; the ALJ approved it on Aug. 3; with no objections from PSD1, it became a PSC order on Aug. 23. PSD1 filed its plan on Thursday.
The plan addresses shortcomings identified following complaints filed by PSD1 customers Penny Nicholson - a former PSD1 employee - and Michelle Hatch alleging various matters of wrongdoing, incompetence and violations of state code by the PSD1 board.
Staff found no criminal misconduct but offered recommendations to improve the board’s performance and financial accountability, and to ensure its compliance with state code.
The PSD1 plan describes its response to six PSC requirements.
One, all current and prospective board members must complete the state board member training program. The board said members have agreed to take the training by the Aug. 23, 2027 due date.
Two, the PSD must file an annual budget with the PSC. The board said it will file a budget - due every June 1 - with the PSC for at least five years, and provide a copy to the Preston County Commission annually. The board included a copy of its Fiscal Year 2027 budget in its filing.
Three - stemming from an improperly conducted property sale - the board must comply with state law and regulations for all property sales. The board said its counsel has advised it that the PSC must consent to and approve of all real and personal property sales. "Board members will seek the advice of counsel when the PSD decides to dispose of real or personal property."
Four, before selling any equipment or assets to any of its employees, board members, family members, or other related parties, the PSD must consult with the West Virginia Ethics Commission.
The board said that its counsel has advised it that such transactions should be avoided. Should such a transaction be necessary, the board will seek advice from the Ethics Commission about whether recusal of the board member with the conflict is enough to allow the PSD to move forward with the transaction.
Five, PSD must develop and implement written policies establishing appropriate financial controls including restrictions on credit card usage, documentation requirements for expenditures, and appropriate internal review procedures designed to improve financial transparency and accountability.
The board’s response to this one describes six policies or actions. It has engaged a labor attorney to develop an employee manual that will include the financial controls to guide PSD employees in the use of funds.
After board meetings, the board chair will correspond with employees on action items from the meeting, such as updating the PSD1 website, providing justification for purchases, updates on regulatory compliance and current or planned projects, and work schedules.
Following allegations of employee embezzlement, the board has adopted a new time card approval process and established a purchase threshold for employees of $100 for non-essential items that are not directly related to the operation and maintenance of the water distribution and treatment system.
The board has enrolled in the state auditor's office purchasing card program and adopted a policy requiring employees to confirm that the PSD does not pay state sales tax on purchases.
The sixth requirement is that the board must maintain proper accounting records and ensure that accounts are properly audited each year. The board said it works with an outside accountant to assist in maintaining its accounting records, and it works to have annual audits completed timely. It included a copy of its FY 2025 audit in its filing.