Based on the results of our review, we found that the significant revenue and expenditure projections in the 2023 proposed budget are reasonable. However, we identified certain revenue and expenditure projections that should be reviewed by the Mayor and Council.

We examined purchases totaling $292,992 and found purchases totaling $179,903 (61 percent) were not competitively procured as required by the District's procurement policy. As a result, the Board and District officials do not have assurance that goods and services are acquired at the best price and that purchases are being made in the most prudent and economical manner in the best interest of taxpayers.

The Board did not provide adequate oversight of District financial activities and did not complete mandatory fiscal oversight training.

Based on the results of our review, we found that the significant revenue and expenditure projections in the 2023 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 always procure goods and services in accordance with Board policies and applicable statutory requirements. We examined purchases totaling $556,813 and found District officials could not support that they periodically sought competition for purchases totaling $478,613.

Village officials did not ensure that insurance premium contributions were accurately calculated and collected.

Members of the Board did not use competitive methods to renovate leased firehouse space and did not adequately oversee leasehold agreements for renovations.

District officials did not make procurements in accordance with District policies, statutory requirements and good business practices.

District officials did not establish controls to safeguard and accurately account for fuel inventory, and the responsibility for managing fuel inventories was not clearly assigned. As a result, officials cannot account for at least 1,358 gallons of fuel purchased or assure taxpayers fuel was only used for District purposes.

The Board did not ensure that compensation received by the Clerk-Treasurer was consistent with his individual employment agreements.

The Board and District officials did not effectively manage fund balance.

While claims were supported and for appropriate purposes, the Board did not ensure claims were properly audited and approved before payment from July 1, 2020 – October 2021. Individuals prohibited from serving as the claims auditor, because they were directly involved in accounting or purchasing functions, audited and approved claims resulting in an increased risk that improper or deficient claims could be paid. The District appointed a new claims auditor in October 2021.

District officials did not adequately secure access to the network or properly manage user permissions to the financial and student information applications. In addition to sensitive information technology (IT) control weaknesses that were communicated confidentially to officials,

District officials did not ensure that network access controls were adequate.

Although the Board and District officials properly established reserve funds that have balances totaling $3 million, they did not comply with the District's reserve policy or transparently fund reserves. In addition, the Board did not take an active role in managing and overseeing reserve fund activity and did not transparently use or maintain all reserves at reasonable levels.

The Board and District officials did not effectively manage fund balance and need to improve their budgeting practices and be more transparent with District residents and taxpayers.

The Board did not audit and approve all claims prior to payment, annually audit the Treasurer's records and ensure the Treasurer filed annual financial reports timely.

District officials did not properly monitor and account for 63 percent of the 105 fixed assets reviewed that cost $595,118. This can be attributed to District officials last conducting a physical inventory in 2018.

The Board did not properly plan, authorize or monitor the Shared Services Facility Capital Project (Project).

The Board and District officials did not properly manage fund balance and reserves and need to improve their budgeting practices and transparency with District residents and taxpayers.