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Audit Objective

Determine whether the Board properly managed reserves.

Key Findings

• The Board did not adopt written policies establishing the financial objectives, funding levels and conditions for use for the District’s reserves.
• The District’s tax certiorari reserve balance could fund approximately eight years of claims.
• The Business Official’s report of reserves did not comply with some requirements of the Board’s policy.

Key Recommendations

The Board should:

• Adopt a written policy outlining the financial objectives, optimal funding levels and conditions for use for each reserve.
• Perform an analysis of the tax certiorari reserve fund balance to determine proper funding levels.
• Ensure the Business Official submits the report of reserves in compliance with all requirements of the Board’s policy.

District officials generally agreed with our recommendations and indicated they will take corrective action.