[read complete report - pdf]

Audit Objective

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

Key Findings

• We tested 75 of 480 disbursements made during our audit period, totaling $31,300, and found that 15 totaling $7,159 were not audited and approved by the Board.
• The District used debit cards to make purchases totaling approximately $14,000. The Board did not audit and approve the associated claims before payment.
• The Board did not contract for an independent audit of its 2017 records as required by law.
• Certain Treasury duties were improperly assigned to a professional service provider and third-party vendors (vendors) had access to District bank accounts to withdraw electronic payments.

Key Recommendations

• Ensure the Board audits and approves claims before payment, except as otherwise provided by law.
• Discontinue the use of debit cards.
• Obtain an annual independent audit of the records.
• Ensure the Treasurer controls the disbursement of funds and discontinue allowing vendors to access the bank accounts.

Except as specified in Appendix A, District officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action. Appendix B includes our comment on an issue raised in the District’s response letter.