Kent Fire District No. 1 - Financial Operations (2019M-37)

Issued Date
July 03, 2019

[read complete report - pdf]

Audit Objective

Determine whether the Board effectively managed the District’s financial operations.

Key Findings

  • 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.

Key Recommendations

  • 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.