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Audit Objective

Determine whether the Board adopted realistic budgets and the Treasurer accurately recorded and reported financial activities.

Key Findings

• The Board’s budgets were incomplete because the real property tax levy and a schedule of other estimated revenues were not included.
• The Board did not adopt a fund balance policy or establish targeted funding levels for its reserve funds.
• The Treasurer did not maintain accurate and reliable accounting records.

Key Recommendations

• Prepare budgets that are complete and accurate, that include realistic estimates of revenues and appropriations.
• Develop fund balance and reserve policies to establish the desired levels of unrestricted fund balance and reserves to maintain.
• Update the financial records to conform to the Office of the State Comptroller’s (OSC’s) accounting and reporting manual for fire districts.

District officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.