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Audit Objective

Determine whether the Board and District officials properly managed the 2016 capital project (Project).

Key Findings

The Board and District officials could have improved their management of the Project. We found:

• District officials did not always obtain competitive pricing or obtain alternative proposals or quotations for Project purchases.
• The Board did not always approve change orders.
• Monthly financial reporting to the Board did not include an itemization of all Project costs.

Key Recommendations

• Solicit competition through bids when required, or request for proposals or quotes to provide assurance the District is receiving the lowest possible price.
• Properly approve change orders.
• Include all itemized Project costs in monthly financial reports to the Board.

District officials disagreed with the findings but agreed with the recommendations and indicated they would take corrective action. Appendix B includes our comments on issues raised in the District’s response.