[read complete report - pdf]

Audit Objective

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

Key Findings

• The Board's budgeting practices included annually appropriating fund balance that was not used to finance operations and adopting budgets that overestimated appropriations by $3.1 million (13.5 percent) over a three-year period.
• The reserve fund policy does not adequately address funding levels which has resulted in reserves being overfunded and not being used.

Key Recommendations

• Adopt budgets that include realistic appropriation estimates.
• Reduce reserve funds to reasonable levels and use the money in the debt reserve to pay the related debt.

District officials agreed with our recommendations and indicated they planned to initiate corrective action.