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⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 19 findings
F1
The procedures shared and observed by the DNCGJ members were thorough and strictly followed by all mandated rules and regulations.
Related Recommendations (1)
R1
Continue to follow all mandated rules and regulations.
F2
The process was transparent and completely non-partisan.
Related Recommendations (1)
R2
Continue to execute the processes in a transparent and non-partisan way.
F3
The process was observed by representatives from both major political parties along with the editor of the local newspaper.
Related Recommendations (1)
R3
Continue to support observation from political parties and community members at large. Required Response: Pursuant to Penal Code §933.05, The Del Norte County Recorder is required to provide a response to the Honorable Judge Karen Olson and the Grand Jury regarding: (F1, F2, F3 & R1, R2, R3). /2025 Del Norte County Unified School District Development Fees and Mitigation Act
F4
Jurors found that the Harbor District violated the Brown Act by failing to publish Meeting Cancellation Notices: Notices for the dates of Jun 7, 2022 (1st Tue), Jul 4, 2023 (1st Tue), Nov 7, 2023 (1st Tue), Dec 19, 2023 (3rd Tues), Jan 2, 2024 (1st Tue), Jan 16, 2024 (3rd Tue), Feb 6, 2024 (1stTue), Feb 20, 2024 (3rd Tue), Mar 5, 2024 (1st Tue). The Grand Jury could not locate agendas for dates which would have been regularly scheduled based on the aforementioned dates based on the fact that regular meetings are consistently scheduled on the first and third Tuesday of each month. AUDITOR'S REPORTS
Related Recommendations (1)
R4
The Harbor District should publish Cancellation Notices within 24 hours for any meetings that would normally fall on the 1st or 3rd Tuesday of the month including those which would possibly fall on a holiday.
F5
Jurors found that the Harbor District fails to require and present consistent financial information for their review and for the review of the public.
Related Recommendations (1)
R5
The Harbor District should require consistent financial information for their review and for the review of the public.
F6
Jurors found that the Harbor District failed to provide adequate oversight of the Harbor District financial resources. Please refer to "discussion" and audit reports for illustration of this.
Related Recommendations (1)
R6
The Harbor District should provide adequate oversight of the Harbor District financial resources either through using a third party, or by receiving the training necessary to gain competency. Please refer to
F7
Jurors found that the Harbor District's Audit Report for fiscal year 2021 found Material weaknesses consisting of internal financial controls and financial reporting, bank reconciliations, a documentation review process, and account reconciliations.
Related Recommendations (1)
R7
The Harbor District should strengthen internal financial controls and accurate financial reporting, ensure bank reconciliations are accomplished, establish a document review process, and ensure account reconciliations.
F8
Jurors found that the Harbor District's Audit Report for fiscal year 2021 found a Significant deficiency identified as OPEB (Other Postemployment Benefits) liability was not reported.
Related Recommendations (1)
R8
The Harbor District should ensure the reporting of OPEB liability.
F9
Jurors found that the Harbor District's Audit Report for fiscal year 2022 found a repeat of Material weakness of bank reconciliation.
Related Recommendations (1)
R9
The Harbor District should provide greater emphasis on bank account reconciliations.
F10
Jurors found that the Harbor District's Audit Report for fiscal year 2023 found no Material or Significant findings.
Related Recommendations (1)
R10
The Harbor District's fiscal year 2023 audit found no Material or Significant findings during the audit process for fiscal year 2023.
F11
Jurors found that the Harbor District's Audit Report for fiscal year 2021 Statement of Net Position or Balance Sheet found – cash $1,815,098, unrestricted fund balance $586,825. Statement of Revenue, Expenses and changes in net position or Profit and Loss Statement found - net loss ($3,672,961). Statement of Cash Flows found - increase from prior year $130,572. This illustrates inconsistent management of cash accounts and unrestricted funds.
Related Recommendations (1)
R11
The Harbor District should place emphasis on managing the cash accounts and the unrestricted fund balance.
F12
Jurors found that the Harbor District's Audit Report for fiscal year 2022 Statement of Net Position or Balance Sheet found - cash $1,486,082, unrestricted fund balance $323,098. Statement of Revenue, Expenses and changes in net position or Profit and Loss Statement found – net loss ($4,015,722). Statement of Cash Flows found – decrease from prior year ($329,016). This provides additional comparison to prior years.
Related Recommendations (1)
R12
The Harbor District should place emphasis on managing the revenue and expense accounts.
F13
Jurors found that the Harbor District's Audit Report for fiscal year 2023 Statement of Net Position or Balance Sheet found – cash $841,354, unrestricted fund balance ($241,546). Statement of Revenue, Expenses and changes in net position or Profit and Loss Statement found - net loss ($4,347,543). Statement of Cash Flows found - decrease from prior year ($901,973). This provides comparison to prior years and illustrates a pattern.
Related Recommendations (1)
R13
The Harbor District should place an emphasis on managing the cash flow.
F14
Jurors found that the Harbor District's Audit Report for fiscal year 2024 Statement of Net Position or Balance Sheet found – cash $1,195,930, unrestricted fund balance $777,987. Statement of Revenue, Expenses and changes in net position or Profit and Loss Statement found - net loss ($6,399,525). Statement of Cash Flows found - increase from prior year $354,576. This also provides comparison to prior years and illustrates a continued pattern. IN-HOUSE REPORTS
Related Recommendations (1)
R14
The Harbor District should continue the emphasis on managing the cash flow.
F15
Jurors found that the Harbor District's financial reports for fiscal years 2021 found Accounts Receivable – end of year $181,341 (DN County Tax (current) is $143,188). Profit and Loss for 12 months ending 6/30/2021 - net (loss) of ($3,671,582). Budget versus Actual Income and Expense report found – Bdgt ($3,364,536), Act ($3,671,582) actual loss greater than budget 9.1%. This illustrates a lack of, or inconsistencies with, oversight.
Related Recommendations (1)
R15
The Harbor District should carefully review the budgeting process to bring the budgeted net gain/(loss) closer to zero.
F16
Jurors found that the Harbor District's financial report for fiscal year 2022 found Accounts Receivable – end of year $79,628, no significant accounts. Profit and Loss for 12 months ending 6/30/2022 – net (loss) of ($3,977,451). Budget versus Actual Income and Expense report found - Bdgt ($3,645,412), Act ($3,977,451) actual loss greater than budget 9.1%. Illustrates a lack of, or inconsistencies with, oversight.
Related Recommendations (1)
R16
The Harbor District should analyze the actual expenses for revenue opportunities and cost savings.
F17
Jurors found that the Harbor District's financial report for fiscal year 2023 found Accounts Receivable – end of year $563,386 (Renewable Energy Capital total $488,888). Profit and Loss for 12 months ending 6/30/2023 – net gain of $212,853. Budget versus Actual Income and Expense report found –the information provided was for year-to-date 4/28/2023 and is not applicable. This also provides a comparison of prior years and inconsistencies contained within.
Related Recommendations (1)
R17
The Harbor District should carefully review any accounts receivable from the government. Under the current climate there is potential for significant write-offs.
F18
Jurors found that the Harbor District's financial report for fiscal year 2024 found Accounts Receivable – end of year $106,077 – no significant accounts. Profit and Loss for 12 months ending 6/30/2024 - net (loss) of ($4,003,634). Budget versus Actual Income and Expense report found – Act ($4,034,538) no budget information was provided for this Fiscal Year. This again is for comparison of prior years, and inconsistencies related to oversight.
Related Recommendations (1)
R18
The Harbor District should insist on receiving budget comparison information on all revenue and expense statements.
F19
Financial Information is reported inconsistently, and when provided, the information provided varies by as many as sixteen different combinations of information. The documents provided and their formats are not consistent making comparisons difficult from presentation to presentation.
Related Recommendations (1)
R19
The Harbor District should consider bringing financial reporting functions in-house using a small business accounting system such as QuickBooks or other similar small business bookkeeping system. Consider hiring an in-house bookkeeper in lieu of an off-site accountant or comptroller. Details provided in Appendices A, B, C, D, E, & F REQUIRED RESPONSE: Pursuant to Penal Code §933.05, The Crescent City Harbor District is required to provide a response to the Honorable Judge Karen Olson and the Grand Jury regarding: (F1,
Additional Recommendations 1
These recommendations are not explicitly linked to specific findings.
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R31-6061-90 >90 TOTAL Company A Person B Etc TOTAL ACCOUNTS PAYABLE As of MM DD, YYYY Vendor Name Invoice # Category/GL Account Amount Due Date Company A Company B Etc TOTAL CHECK DETAIL Period Issued: MM DD thru DD, YYYY Check #Date Issued To Cash Account Amount 12345 MM/DD/YYYY Company C Checking XX,XXX.XX 67890 MM/DD/YYYY Company D Checking XX,XXX.XX Etc. TOTAL
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