Finding 1216986 (2025-001)

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance due to clarification by the actuaries of the trust documentation behind the OPEB Trust Fund. Criteria: A good system of internal controls would provide for accurate recording and reporting of postemployment benefits in order to provide for accurate financial reporting. Cause: A large adjustment to dissolve the OPEB Trust Fund and move all its assets to the general fund was required in order to accurately present the District’s financial statements. Effect: A material adjustment to the District’s beginning fund balance was required to properly state the balance of the post-employment benefit plan. Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The District will implement internal controls to properly record postemployment benefits on a timely basis prior to audit fieldwork.