Finding 1075855 (2024-002)

Criteria or Specific Requirement: The District is responsible for meeting annual funding requirements. Statement of Condition: Annual replacement and extension fund deposits were underfunded by $23,749.38. Statement of Cause: Lack of oversight from the Board allowed noncompliance to occur. In addition, a cash deficit also reduced the ability to make required deposits. Statement of Effect or Potential Effect: The District did not comply with requirements regarding the replacement and extension fund account. Perspective Information: An understanding of the District's internal controls was obtained through observation, inquiry and walkthroughs of key areas related to the financial statements. Identification of Repeat Findings: This is a repeat finding for financial statement purposes. (2023-02) Recommendation: The Board should ensure that the manager deposits appropriate funds into the replacement and extension fund account and monitors the balance in relation to the requirements set forth in the loan agreement. A responsible member of the Board should be assigned the responsibility for reviewing deposit requirements and compliance for the replacement and extension fund account. Views of Responsible Officials and Planned Corrective Actions: The Board agrees with the finding and is responsible for evaluating the condition of the replacement and extension fund account. The funding of the account will be more closely controlled. A responsible member of the Board will be assigned to oversight responsibilities. Questioned Costs: None