Determine whether the Board effectively managed the District’s financial operations.
- The Board’s budgets were incomplete and inaccurate. Also, appropriations were overestimated and transfers to reserves were not budgeted.
- The Board was unable to provide documentation of four required permissive referendums and legal notices.
- The Board did not adopt a reserve policy.
- Prepare budgets that are complete and accurate, including estimates of fund balance and realistic estimates of appropriations.
- Ensure transfers to reserves are included in the budget and that reserve funds are disbursed subject to permissive referendum and for the correct purposes.
- Adopt a reserve policy for the maintenance of a reasonable level of fund balance.
District officials disagreed with certain aspects of our findings and recommendations, but indicated they have initiated corrective action. Appendix B includes our comments on issues raised in the District’s response letter.