Marin County, California – Three special districts in Marin have failed to meet the state requirement for financial audits, according to a recent report from the Marin County Civil Grand Jury. The districts in question are the Marin City Community Services District, the Firehouse Community Park Agency in Bolinas, and the Alto Sanitary District.
The report revealed that the Marin City Community Services District did not submit its audit for the 2020-21 fiscal year. Similarly, the Firehouse Community Park Agency was late in filing for 2015-16, while the Alto Sanitary District missed its deadline for 2022-23. This lack of compliance raises concerns about transparency and accountability, leaving constituents without critical financial information to evaluate the performance of these agencies.
The Grand Jury has consistently investigated the operations of nearly 100 special districts and joint power authorities in the county. This latest report emphasizes how well these agencies adhere to financial reporting standards mandated by state law. Collectively, these agencies generate nearly $1 billion in revenue, sourced from property taxes, sales taxes, customer service fees, and grants.
According to the report, there have been numerous instances where financial reports were submitted late, yet no penalties were enforced against the non-compliant agencies. Additionally, many of the district websites failed to meet the state’s transparency requirements, similarly without consequence.
While the Alto Sanitary District and Firehouse Community Park Agency have since uploaded their audited statements for the years in question, the Marin City Community Services District’s website does not provide any financial data, merely stating “Coming soon!” on its audit reports page. Moreover, the Marin City district has also failed to file reports with the California State Controller’s Office for the 2021-22 fiscal year.
The Grand Jury highlighted that state law empowers the Department of Finance to mandate audits when districts do not submit reports on time. However, in reviewing the past 14 years, they found no instances of the Department of Finance ordering audits for delinquent agencies. When questioned about this, the Department indicated that it prefers to work collaboratively with the agencies rather than imposing penalties.
Mina Martinovich, the county’s finance director, could not be reached for comment. However, her assistant, Sandy Kacharos, noted that financial matters are a regular topic in weekly meetings with the Marin City district’s representatives. The district, established in 1958, provides essential services like recreation and waste management to the area.
Historically, the Marin City district has faced financial troubles, reporting losses between 2015 and 2018. At the height of its crisis in 2018, the district was reportedly $125,000 in debt. Despite improvements reported in subsequent years, the district has seen leadership changes, with both the fiscal administrator and general manager resigning in 2021.
The Firehouse Community Park Agency and the Alto Sanitary District have recently filed their reports, with district manager Bill Hansell indicating that personal circumstances delayed his submission. He asserted that this was the first time he has missed a filing in nearly a decade of working for the district.
The Grand Jury recommends that Marin County’s Board of Supervisors create a mechanism to conduct audits for any agency failing to file its financial reports for more than a year. This recommendation aims to bolster accountability and ensure transparent practices across all districts.
This report serves as a reminder of the importance of financial oversight in public agencies, emphasizing the need for compliance to safeguard public resources. The full report from the Grand Jury can be accessed online.
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