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Audit Objective

Determine whether the Board and District officials effectively managed the District’s general fund financial condition.

Key Findings

• Over the last five years, budgeted expenditures were overestimated by a total of $16.4 million leading to $13.1 million of the appropriated fund balance not being used.
• The tax certiorari reserve may be overfunded by $13.4 million based on past settlement rates.
• The District does not have a comprehensive multiyear financial plan.

Key Recommendations

• Adopt budgets that reflect realistic estimates for expenditures based on historical trends or other identified analyses.
• Review reserves to evaluate if they are necessary and reduce unneeded reserve funds in accordance with statutes.
• Approve a comprehensive multiyear financial plan.

District officials disagreed with certain aspects of our findings and recommendations, but indicated they planned to implement some of our recommendations. Appendix B includes our comments on issues raised in the District’s response letter.