Determine if the Board ensured that the cash disbursements process was adequately segregated and cash disbursements were adequately supported and for legitimate District purposes.
- The Board did not audit District claims properly. We found 18 claims totaling $33,446 were paid without an invoice attached to the claims.
- The checks for 39 payments totaling $141,904 were deposited between one and 131 days before they were approved according to the District minutes.
- 306 checks, totaling almost $2 million, had only one of the two required signatures.
- Payments totaling $3,190 were approved even though they were not valid District expenditures.
- The Treasurer’s duties are not properly segregated.
- Conduct a deliberate and thorough audit of each claim to ensure that each individual claim is a sufficiently supported valid expenditure and payment approval is documented in the Board minutes.
- Limit claims paid before audit to those authorized by law and ensure they are presented for audit at the next regular Board meeting.
- Ensure that the Treasurer’s cash disbursement functions are adequately segregated or adequate mitigating controls are in place and functioning.
Except as indicated in Appendix A, District officials generally agreed with the findings in our report. Appendix B includes our comments on certain issues District officials raised in their response.