District officials did not adequately safeguard computerized data from unauthorized use, access and loss and although the District paid an IT vendor $106,460 for IT services, officials did not have clear contract language that identified the IT vendor's roles and responsibilities. As a result, gaps in IT security practices occurred.

Based on the results of our review, we found that the significant revenue and expenditure projections in the 2022 proposed budget are reasonable.

The City's use of approximately $7.3 million of fund balance to close gaps in the budget decreases the fund balance that is available to cover unforeseen circumstances. The City could potentially face shortfalls based on revenue estimates for parking violation fines, sanitation user fees, sewer usage and sale of metered water. Based on projections, the health insurance appropriation is likely underestimated by $442,000. Budgeted overtime funding for firefighters ($1.5 million) and police ($1.4 million) is likely underestimated by a total of at least $359,000. All four of the City's collective bargaining agreements are set to expire at the end of 2021. The City faces potential increased salary and wage costs when these agreements are settled. The proposed budget does not include a contingency appropriation in the general fund. The proposed budget does not include a tax overlay, which could potentially create a revenue shortfall in 2022.

Based on the results of our review, we found that the significant revenue and expenditure projections in the 2022 tentative budget are reasonable.

The CEDC Board did not properly manage or monitor the revolving loan fund program and was unaware inadequate accounting records were maintained.

District officials did not adequately manage and monitor network user accounts and permissions. As a result, the District has an increased risk that it could lose important data and suffer serious interruption in operations.

Based on the results of our review, except for matters described below, the significant revenue and expenditure projections in the proposed budget appear reasonable.

The Board did not properly establish and manage the capital reserve fund, establish a written reserve fund policy or adopt a written multiyear capital plan. In addition, annual update documents (AUDs) were not filed timely and the required independent audit of the financial statements was not conducted.

Based on the results of our review, we found that the significant revenue and expenditure projections in the 2022 proposed budget are reasonable. However, we identified certain revenue and expenditure projections that should be reviewed by the Mayor and Council.

District officials did not ensure network user accounts were adequately configured and secured. In addition to sensitive information technology (IT) control weaknesses which we communicated confidentially to officials.

The Board did not effectively manage the District’s financial condition and did not adopt realistic budgets from 2018 through 2021.

The Board did not ensure that purchases were adequately documented and approved to verify that a competitive process was used to procure goods and services and ensure the optimal use of resources.

The real property tax collections and retiree health insurance contributions we reviewed were properly collected, recorded and deposited. However, District officials did not adequately segregate the duties of or establish adequate compensating controls over a senior account clerk/tax collector (clerk) who is responsible for receiving, recording, depositing and reporting all money collected for real property taxes and retiree health insurance contributions.

We issued a report in August 2016, identifying certain conditions and opportunities related to financial condition for the District management's review and consideration. Our audit included recommendations for the following findings: budgeting, appropriated fund balance and reserves, compensated absences liability, unused flex spending money, unrestricted fund balance, reserve policy, excess reserves and the debt service fund reserve. We revisited the District in June 2021 to review the progress in implementing our recommendations. Our follow-up review was limited to interviews with District personnel and inspection of certain documents related to the issues identified in our report. Based on our limited procedures, it appears that the District has made progress implementing corrective action. Of the eight audit recommendations, two recommendations were implemented, five recommendations were partially implemented and one recommendation was not implemented.

District officials did not always seek competition or comply with the District's procurement policy when procuring professional services. As a result, taxpayers have little assurance that procurements are made in the most prudent and economical manner.

District officials did not properly collect, receipt, deposit and disburse extra-classroom activity (ECA) funds.

District officials Did not adequately manage network user accounts. We identified 66 unneeded user accounts including 52 generic accounts and 14 former employees' accounts. District officials adequately managed network administrative permissions. Sensitive information technology (IT) control weaknesses were communicated confidentially to officials.

The Board did not fulfill its fiduciary responsibilities to ensure money was adequately safeguarded and accounted for and Company officials did not establish adequate controls over collections and disbursements. As a result, neither the Company nor we were able to confirm all money was properly deposited, disbursed and accounted for.

The Board did not provide adequate oversight of the District's financial operations and exceeded its authority by passing a resolution that allowed the Treasurer to pay all recurring expenditures without the Board's prior review or approval.

Officials did not properly or transparently use capital project resources. As a result, voters were not afforded the opportunity to ratify or reject the Board's decisions or have assurance that officials obtained services at the best cost.