RANCHO MURIETA, CA (MPG) - Mark Matulich, who spent the past 15 months as director of finance and administration fixing the Rancho Murieta Community Services District’s financial system, has resigned.

Although much of the preparatory work for two long-overdue audits is complete, they remained unfinished when he left.

Board Vice-President John Merchant, who is acting as the board president, confirmed that Matulich resigned on May 1. He said that before leaving, Matulich met with “an interim finance person we have hired to complete the audit process and to manage the day-to-day district accounting.”

The Rancho Murieta Community Services District has also posted the vacancy on its website.

The River Valley Times contacted Matulich to request an exit interview and he said, “I will respectfully decline to make any comments.”

However, Matulich added, “The district is on the right track and set up for success. There are hard-working and truly great people working there, and I wish them, the district and the community all the best.”

The River Valley Times emailed all five board members seeking comments on Matulich’s resignation timing and contributions to the district. The board members were also asked to share their understanding of the reasons behind his decision to resign.

Randy Jenco was the only director who provided a comment. Director John Merchant responded only to confirm Matulich’s resignation and the hiring of an interim finance director. Director Linda Butler said she could not comment. Directors Tim Maybee and Board President Steve Booth, who has not been attending board meetings due to a conflict with General Manager Mimi Morris, did not respond as of press time.

Jenco said he had this understanding of why Matulich resigned: “Mark was disappointed with the current board’s lack of support for the efforts he and Mimi were making in updating and improving CSD’s operations and procedures. He questioned the board’s involvement in day-to-day operations and inserting themselves inappropriately into the organizational chain of command.”

Jenco said that Matulich would be sorely missed.

“He was a steady influence in finance that the district has been missing for years. We were finally making progress to get our accounts in order,” Jenco said.

Jenco said he especially admired Matulich’s ability to attack problems with innovative solutions.

“His approach may have been too much for some on the board. An example is the flip-flop on the bar code fees, Jenco said. “Mark’s idea of adding fees was a simple and thoughtful solution to a (security funding) problem that had plagued us for years. It should have been a no-brainer. But social media’s influence on some directors confused the issue. I believe he was extremely frustrated by how this was handled.”

Jenco also addressed the search for a replacement.

“I am hopeful that we will get someone on board who can complete the tasks that Mark has spearheaded and organized for completion,” Jenco said. “I am doubtful that we will be lucky enough to find a replacement of his caliber.”

April Financial Update

The last time Matulich provided an accounting update was at the April 10 Finance Committee meeting. (See "CSD Financial Overhaul Recovers $623,00 in 15 months".) Matulich did not attend the April 16 Board meeting.

Matulich began his April 10 report by stating that his efforts over the prior 15 months to fix the district’s accounting so the overdue audits could proceed had resulted in the recovery of $623,000.

The recovered funds included developer deposit fees, security impact fees, long-overdue utility bills and reimbursements for infrastructure costs. In one case, staff discovered 40 homes that had never been set up with district utility accounts, one of them unbilled for more than a year.

“These problems had been building for five years,” Matulich said, noting that past turnover left the district without regular financial reporting or basic accounting procedures in place.

Because the accounting records were so unreliable, according to Matulich, he, General Manager Mimi Morris and accountant Chris Funakoshi decided to rebuild the district’s accounting system from scratch, starting with records from July 1, 2021. They carried over the last verified balances from the 2020-21 audit and began reposting more than 30,000 transactions. At the same time, they implemented new procedures, trained staff and addressed operational issues such as broken meter readings and uncollected charges.

The 2020-21 audit was finally completed in December 2023. The 2021-22 fiscal year records are currently under audit. Two temporary accountants are nearing completion of the 2022-23 and 2023-24 records needed for audit preparation, and the district’s auditing firm has agreed to conduct the next two audits simultaneously to help speed up the process.

Although more work remained, Matulich told the Finance Committee, the foundation was in place for accurate accounting and reliable audits going forward.

Director Merchant was so elated with Matulich’s April 10 report that he asked that the district share it with the public, calling it an important sign of progress. The audio is available at the district’s website at April 10, 2025 Finance Committee Audio – Mark’s State of Accounting. 

Matulich’s resignation marked the district’s second major setback this year. The first was a rift between General Manager Mimi Morris and Board President Steve Booth.

The conflict erupted into public view on Jan. 6, when the board held a special meeting to evaluate Morris’ performance. Before the board moved into closed session, without Booth, Morris publicly accused him of retaliation, discrimination and harassment. Morris also said that she had filed an internal complaint against him following the Nov. 20 board meeting.

Morris’ primary complaints center on Booth’s alleged insistence that she return to the office some months after being allowed to work from home due to a medical condition. Morris has also claimed that Booth harmed her reputation by discussing her performance during the open session of the November board meeting.

Booth responded to the River Valley Times on Jan. 7, stating, “I categorically deny that there has been any discrimination against her for any reason.”

During the Jan. 6 closed session, the board voted 4-0 to place Morris on administrative leave pending an investigation into her grievance. Two days later, Morris’ attorney filed a government claim against the district, expanding on her allegations against Booth. Under California law, public employees must file a government claim before suing a governmental entity, providing an opportunity to resolve the issue before litigation.

In an executive session during the Feb. 19 board meeting, the board voted 4-0 to deny Morris’ government claim. That action cleared the way for her to proceed with a lawsuit, although no legal filing has been made to date.

The board also held a special meeting on March 14 to confer with legal counsel about Morris’ situation. After the closed session, Director Merchant announced that Morris would be returning from administrative leave.

Morris resumed her duties on March 24. (See "CSD Leadership Rift Continues"). On the same day, Board President Booth notified the district that he would be unable to attend any committee or board meetings for the time being.

Matulich’s Credentials

Matulich grew up in Sacramento and graduated from California State University, Sacramento in 1999 with a bachelor’s degree in business administration, specializing in accountancy. He worked as an accountant for 11 years, including positions at The Sacramento Bee and with a California State University, Sacramento auxiliary that managed business operations. In 2010, he joined the FBI as a special agent, primarily serving in the San Francisco office, where he investigated financial fraud. Matulich returned to the private sector in 2022 as chief financial officer for a healthcare facility in the Bay Area. He joined the district on Oct. 30, 2023.