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CSD board members and public attendees watch a ZOOM meeting with an auditing firm representative.

  Auditing Firm Condemns  
  CSD's Bookkeeping Practices  

Posted: January 6, 2024
Newberry Springs Community Alliance
by Ted Stimpfel

Minimum $20,000 - $35,000 estimated
to correct past faulty practices.

    The Newberry Community Services District (CSD) is finally confronting a neglected problem that has plagued it for decades: its inadequate bookkeeping. This issue, first highlighted in a 2013 Grand Jury report (see: Community Alliance's June 18, 2013, news blog), has now reached a critical point, prompting action.

    During the 2013 Grand Jury investigation, the Newberry CSD's financials were in such a mess, that the Grand Jury had to hire the San Francisco consulting firm, Harvey Rose Associates, to advise the Grand Jury on the chaos.

    While past CSD presidents, including Robert Springer, claimed the problem was resolved, recent events paint a different picture. The removal of General Manager Jodi Howard revealed a cesspool of financial discrepancies, according to a recent audit report by the accounting firm of Eide Bailly.

    Director Mike Matson's persistent efforts to address this issue finally garnered support from the other board members. The audit exposed numerous abnormalities in the district's financial records, raising concerns about the CSD's compliance with county auditing standards.

    The potential cost of fixing the books is significant, leaving board members stunned. This writer believes that the actual cost will be easily double the minimum estimated. However, the cost of inaction could be even greater. As spectator Rose Beardshear pointed out, lack of proper bookkeeping could jeopardize future grant opportunities, vital for the district's progress.

    The CSD's board is expected to further discuss this critical matter at their next monthly meeting on January 23. This long-delayed issue finally taking center stage signals a potential turning point for the district, as it embarks on the challenging but necessary task of cleaning up its financial house.

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