Determine whether the Board provided adequate oversight of the District’s financial operations.
The Board did not:
- Adopt realistic budgets, which resulted in excessive unrestricted fund balance that was not substantiated by planned uses in any fund balance policy or multiyear financial or capital plans.
- Adopt any information technology (IT) policies.
- Perform an adequate claims audit and seek competition for professional services.
The Board should:
- Adopt realistic budgets and develop a fund balance policy and multiyear financial and capital plan to reduce unrestricted fund balance for the benefit of District residents.
- Properly audit claims to ensure each claim has supporting documentation and policies were followed.
- Require professional services to be acquired through a competitive process.
District officials generally agreed with our findings and recommendations and indicated they have begun to initiate corrective action.