As the Task Force said in its September 2012 report, " Part of the reason the District has reached its current uncomfortable position of having seriously underfunded liabilities is that standard accounting procedures have masked the true extent of these liabilities and the District has not taken steps to work around the accounting industry's shortcomings." This is becoming ever more apparent. In its just released audited financials, the District has "discovered" that the entirety of its general fund reserves are not just "assigned" as stated in the 2011/12 financials but actually" restricted"; unavailable for covering expected budget shortfalls. This leaves MOFD, as of 6/30/2013 with $3.5mm in liquid assets, all committed to the capital fund, and net payables of $427,000 in the general fund. In addition, the capital fund account has since been drawn down by over $1 million due to the purchase of property for the proposed Station 46. MOFD is almost out of money. The Task Force contends that this is partially due to the fact that the MOFD balance sheet does not present the true condition of the District and that, until very recently, what was presented was not fully understood by the staff or the Board.
The following link is to the Task Force's detailed comments on the audited balance sheet and suggestions of how MOFD could create a working balance sheet which would allow it to better understand its financial condition.