Category Archives: OTHER TOPICS

IVGID’s Management response to forensic audit report

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Below is the evaluation of IVGID’s Mgmt response to the Rubin Brown Forensic Audit Report , written by an  Artificial Intelligence Bot. Our human observations are that there will be no change in IVGID or its culture of no controls, based on continued stonewalling regard financial records. For fiscal year 2023, the General Ledger is over $4 million out of balance (as of 8-3-2024) while the fiscal year 2024 is over $15 million out of balance (as of 7-10-2024). Clearly the Tyler Munis is not properly implemented. In a  Committee meeting on Local Government Finance at the State of Nevada … Continue reading →

IVGID Forensic Audit Report Released: What Property Owners Need to Know

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“The scope of the audit was to identify fraud risk, it was not to identify fraud.”    IVGID Trustee Ray Tulloch, August 7, 2024, Committee meeting on Local Government Finance – State of Nevada Tax Department And that is why the report doesn’t include the word F-R-A-U-D. Because Trustee Tulloch and General Manager Bobby Magee made sure FRAUD was not in SCOPE. This was a BAIT-AND-SWITCH as the original audit scope in the RFP was clear. *** The long-awaited and carefully worded forensic audit report for the Incline Village General Improvement District (IVGID) has been released, revealing significant concerns about … Continue reading →

IVGID General Manager quits after three months

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UPDATE: In an email to a resident, Human Resources Director Erin Feore confirmed both Bobby Magee, and Adam Cripps have left District employment. Both live in  the Southern California area. MS. Feore wrote, ” Bobby Magee has resigned his position from the Incline Village General Improvement  District, effective August 22, 2024. He is no longer working and he is no longer receiving a salary.   Adam Cripps has also resigned his position, Assistant Director of Finance,  with the District, effective August 26, 2024. He is no longer working; as such, he is no longer receiving a salary.”  Cripps had been … Continue reading →

Special Assessment – absent a benefit to the property assessed – is illegal and void

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In City of Reno v. Folsom, the Nevada Supreme Court held that a special assessment tax was justifiable only if the proposed special assessment provided commensurate benefit: “It is well established that a special assessment, absent a benefit to the property assessed, is illegal and void.” What is the difference between the this case and the Incline Village General Improvement’s imposition of a “Recreation Facility Fee”? NOTHING. In 2021, 78% of IVGID punch cards issued WERE NOT REDEEMED. Over three THOUSAND parcel owners did not pick up any punch cards!  That is 44% (3,564 owners). Do these 3,564 owners all … Continue reading →

Appeal of signature verification for recall petition of IVGID Trustees denied

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The Nevada Secretary of State’s office denied the appeal of the verification of signatures for petition to recall the Incline Village General Improvement District Trustees Sara Schmitz and Matthew Dent. In two letters dated March 1, 2024, NV SoS Deputy Secretary  Gabriel Di Chiara concluded, “In summary, the Secretary of State finds the petition remains insufficient. No further action will be taken on the appeal.” Letter re: Sara Schmitz Recall   

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Forensic Audit Authorized – but will it be a white-wash?

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After years of residents’ complaining, the Board of the Incline Village General Improvement District (IVGID) authorized a forensic audit in November, 2023. This seemed a step in the right direction. Especially since, in October, 2023, we wrote how expenses had been hidden by IVGID for decades. This is financial statement fraud – like WorldCom in 2002.   link 1   link 2   link 3 We have also written about the financial systems meltdown after a failed accounting and payroll implementation and no fixed asset inventory for a decade or longer. link 1  link 2 Original Forensic Audit Scope In September, 2023 IVGID … Continue reading →

Recall fails to gather sufficient valid signatures

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The recall effort failed to gather sufficient signatures. The minimum requirement to qualify for a recall special ballot: 1801 valid and verified signatures of voters in the 2020 election. For IVGID Trustee Matthew Dent, there were 1,726 valid signatures submitted. For IVGID Trustee Sara Schmitz, there were 1,687 valid signatures submitted.. Both fell short. The process is now over unless there is a challenge with the Secretary of State.

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Forensic Audit: The need to investigate accounting fraud by past IVGID management

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On August 24, 2023, the IVGID Board of Trustees voted to perform a forensic audit on IVGID’s accounting and financial reporting. A request for proposal to seek a qualified CPA firm to perform a scope of work is in process.  It is estimated that the costs could be as high as $150,000.  This audit has been prompted by a continued need to adjust prior period financials, outside auditors concerns about material weaknesses in internal controls, resistance to accept Audit Committee recommendations by management and some Trustees, and false statements made by management in the Representations Letters provided annually to the … Continue reading →

OPINION: Cooking the Books – Part 2

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On October 20, 2023, we obtained audited financial statements back to Fiscal Year 1990 for the Incline Village General Improvement District. Analyzing the data, we can now state that the fraud explained in Cooking the Books (Part 1) has been ongoing since 1990, and likely before that time. In that article, we explained that IVGID had improperly capitalized costs as LAND, and that this scheme is one of the ten most common fraud schemes involving financial statements. We analyzed data from audited financial statements CAFR/ACFR 2009 to 2022. With the older CAFRs obtained (1990 – 2007: links at end of … Continue reading →

OPINION-Is  IVGID management investing cash correctly?

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At June 30, 2022, the District had $49,947,779 in cash, yet according to the audited financial statements, the investment of the cash lost $110,920.  How is that possible? Almost  $15 million is in checking accounts and probably earn no interest.  But what about the other $35 million? Here is the breakdown: 1) Certificate of Deposits of $1.4 million with maturities spread equally between 2025 and 2027. 2) Government Agency Securities of $3.4 million with maturities spread equally between 2023 to 2026. 3) US Government Money Markets funds of $14.7 million have maturities of one year or less but the yield … Continue reading →