[read complete report - pdf]

Audit Objective

Determine whether the Board provided adequate oversight of the District’s financial operations.

Key Findings

The Board did not:

• Adopt realistic budgets, which resulted in excessive unrestricted fund balance that was not substantiated by planned uses in any fund balance policy or multiyear financial or capital plans.
• Adopt any information technology (IT) policies.
• Perform an adequate claims audit and seek competition for professional services.

Key Recommendations

The Board should:

• Adopt realistic budgets and develop a fund balance policy and multiyear financial and capital plan to reduce unrestricted fund balance for the benefit of District residents.
• Properly audit claims to ensure each claim has supporting documentation and policies were followed.
• Require professional services to be acquired through a competitive process.

District officials generally agreed with our findings and recommendations and indicated they have begun to initiate corrective action.