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Audit Objective

Determine if the Board properly manages fund balance.

Key Findings

• The Board did not adopt financial plans for the maintenance of a reasonable level of fund balance, the funding and use of reserves and a multiyear financial plan.

Key Recommendations

• Adopt financial plans for the maintenance of a reasonable level of fund balance, the funding and use of reserves and a multiyear financial plan.
• Consult with the District's attorney and ensure the capital reserve funds are properly established.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action. Appendix B includes our comment on the District’s response.