[read complete report - pdf]

Audit Objective

Determine whether the Board provided adequate oversight of the District’s financial operations and fuel inventories.

Key Findings

• The Board did not:
  • Annually audit the Treasurer’s books and records or request to review budget-to-actual reports and bank statements.
  • Properly establish its capital reserve fund and obtain voter approval prior to issuing $150,000 in debt.
  • Require perpetual diesel fuel inventory records, leading to unaccounted for fuel.
• The Treasurer did not maintain subsidiary revenue and expenditure accounts or perform bank reconciliations.

Key Recommendations

• Provide oversight of the Treasurer’s duties and annually audit the Treasurer’s books and records.
• Officially establish the capital reserve and obtain voter approval prior to issuing debt.
• Maintain perpetual inventory records and reconcile to physical inventories on hand.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action.