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.