Audit Results
During our fieldwork, District officials were in the process of developing a reserve plan, which the Board was expected to adopt following the completion of our fieldwork. This preliminary plan addresses the District’s seven reserves that were previously established and funded1 and totaled approximately $5.8 million as of June 30, 2013. We reviewed the District’s preliminary reserve plan. We found that for five of the seven reserves, totaling more than $4.3 million,2 the District’s preliminary plan failed to include
a clear and detailed rationale for maintaining the reserves, the detailed objectives of the reserves,needed funding levels, sources of funding and the conditions under which the reserves’ assets will
be used or replenished. While we commend the District for developing a written plan, without these
key elements,3 the District cannot ensure taxpayers that all reserves are properly established, used for
appropriate purposes and funded to reasonable levels with appropriate sources.The full report is HERE.