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