[Oct 22, 2022] This topic covers accounting issues PRIOR TO Oct 2022. Since that time, In October 2023, Financial statement fraud has been discovered. Please see MORE CURRENT POSTS for information.  THERE IS NO RECAP OR UPDATE BELOW ON THE FRAUD DISCOVERED.

1. Financial Statements have had material weaknesses in FY2021 and some prior years.

–        2. IVGID has weak internal controls.

In a Board meeting on March 13, 2020, Trustee Matthew Dent stated that Trustee Sara Schmitz made a public records request. Susan Herron, the public records officer responded that there were no records. A news report in the Tahoe Daily Tribune made the following statements:

“Dent said Schmitz made a public records request for the district’s internal controls and nothing came back, leading them to believe there were no internal controls. Wong and Interim General Manager Indra Winquest stepped in to say the district does have internal controls, they just aren’t written out in an easily acceptable form.”

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3. IVGID has no internal audit function, although it has $40 million in revenue a year. The day-to-day responsibilities of government internal auditors are to safeguard resources against fraud, waste, and abuse; promote accuracy and reliability in accounting; and evaluate compliance with laws and regulations. This function could be outsourced services rather than staffed by employees; Carson City uses this approach.

4. The “award” from GFOA on financial statements has the disclaimer [below]. The city of Bell, CA, one of the best known municipal scandals in history received the award in 2008 prior to the scandal erupting in 2010.   

–        GFOA award programs are intended to recognize governments’ efforts to make high quality financial reports or budget documents available to the public.*

–        GFOA relies on each government’s assertions and information supplied in their award application.

–        GFOA makes no guarantees, representations, or warranties regarding the accuracy of the financial information made available by award recipients or the financial solvency or soundness of any government as part of the award programs. Receipt of a GFOA award is not, and may not be inferred or assumed to be, GFOA’s endorsement, evaluation or approval of a recipient’s financial information or practices beyond what is listed in GFOA’s evaluation criteria for each award.