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Audit Objective

Determine whether the Board ensured that goods and services were accurately paid and purchased in accordance with the District’s procurement policy and statute.

Determine whether the Board properly managed a fire hall capital project.

Key Findings

• The Treasurer made duplicate payments to 11 vendors totaling more than $17,000, including approximately $3,200 that District officials did not find prior to our audit.
• District officials did not competitively bid a public works contract totaling more than $115,000.
• District officials did not obtain quotes for 16 of 21 purchases totaling approximately $56,000.
• The construction manager may have improperly charged the District more than $14,000 for administrative fees and sales tax.

Key Recommendations

• Solicit bids or quotes as required and ensure that purchases include the appropriate supporting documentation.
• Audit all payments to ensure they are District obligations and based on original invoices.
• Consult legal counsel and, if appropriate, seek reimbursement for the improper charges.

District officials generally agreed with our findings and indicated that they plan to initiate corrective action. Appendix B includes our comment on an issue raised in the District’s response.