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Audit Objective

Determine whether the Board effectively managed the District’s financial operations.

Key Findings

• The Board’s budgets were incomplete and inaccurate. Also, appropriations were overestimated and transfers to reserves were not budgeted.
• The Board was unable to provide documentation of four required permissive referendums and legal notices.
• The Board did not adopt a reserve policy.

Key Recommendations

• Prepare budgets that are complete and accurate, including estimates of fund balance and realistic estimates of appropriations.
• Ensure transfers to reserves are included in the budget and that reserve funds are disbursed subject to permissive referendum and for the correct purposes.
• Adopt a reserve policy for the maintenance of a reasonable level of fund balance.

District officials disagreed with certain aspects of our findings and recommendations, but indicated they have initiated corrective action. Appendix B includes our comments on issues raised in the District’s response letter.