Galt-Arno Cemetery District

REASON FOR INVESTIGATION

The Grand Jury received a complaint regarding the Galt-Arno Cemetery District operations.

BACKGROUND

The District operates and maintains the Galt and Hicksville Cemeteries with a staff of three full-time employees and a part time manager. The District is governed by a five-member Board of Trustees. Both cemeteries are for the use of the residents within the boundaries of the District.

PROCEDURES FOLLOWED

The Grand Jury interviewed District staff and a member of the Board of Trustees. Financial documents, the District's Office Manual and the latest Board Meeting Minutes were reviewed.

FINDINGS

1. The District was audited by a relative of the District Office Manager for the fiscal years ended June 30, 1994, 1995 and 1996.
2. The audits did not indicate whether the audit was performed by a Certified Public Accountant or a Public Accountant, which would be required for an independent audit.
3. The District's Office Manual is outdated and has been in the revision process for a considerable length of time.

CONCLUSIONS

Audits should not be prepared by a relative of a District employee. This lack of independence clouds the validity of the audit.

The District does not have an updated and approved Office Manual.

RECOMMENDATIONS

The Grand Jury recommends that:

1. Future audits be performed by an independent Certified Public Accountant or Public Accountant.
2. A copy of the updated Office Manual, approved by the Board of Trustees, be sent to the Grand Jury by September 30, 1997.

RESPONSE REQUIRED
The Penal Code requires response to the recommendations contained in this report be submitted to the Presiding Judge of the Sacramento Superior and Municipal Courts by September 30, 1997, from:

Board of Trustees for the Galt-Arno Cemetery District