The Sacramento County Grand Jury made 12 findings and 11 recommendations in its June 24 report on the Rancho Murieta Community Services District. Under California law, the Board of Directors must respond to each finding and recommendation within 90 days.

District Finances

Finding 1: The district operated its accounting system without standardized procedures, contributing to years of overdue audits.

Recommendation: Complete updated accounting procedure manuals reflecting current software systems and accounting processes by Dec. 31, 2026.

Finding 2: Audits for fiscal years 2022-23 through 2025-26 remained delayed, leaving the district out of compliance with state law.

Recommendation: Complete the 2022-23 and 2023-24 audits by Sept. 30, 2026, and the 2024-25 and 2025-26 audits by Dec. 31, 2026.

Finding 3: The district has not demonstrated that material weaknesses identified in the 2019-20 audit have been fully corrected.

Recommendation: Prepare a written report identifying which audit findings and material weaknesses have been resolved and which remain outstanding by Sept. 30, 2026.

Finding 4: The Grand Jury credited the hiring of Finance and Administration Director Cecilia Min with making significant progress in improving accounting practices and reducing the audit backlog.

Management

Finding 5: Continued turnover among upper management has hindered district operations. The Grand Jury noted that contracting with HRtoGO for human resources may improve personnel management and reduce future employment litigation.

Finding 6: The board waited about 10 months before beginning the search for a permanent general manager and instead relied on an interim general manager whom the Grand Jury concluded lacked the qualifications and experience to lead the district.

Recommendation: Follow the recruitment schedule and hire a qualified permanent general manager by Sept. 30, 2026.

Governance and Ethics

Finding 7: The district’s Conflict of Interest Code is outdated, creating confusion about which positions are required to file Form 700 Statements of Economic Interests.

Recommendation: Update the Conflict of Interest Code by Sept. 30, 2026.

Finding 8: A board member’s participation in discussions about a possible water connection moratorium created the appearance of a financial conflict of interest.

Recommendations:

Update procedures governing conflicts of interest and recusals.

Improve oversight and public access for Form 700 Statements of Economic Interests.

Finding 9: Only one board member had completed governance training through the California Special Districts Association or a similar organization.

Recommendation: Ensure board members receive governance training.

Finding 10: The district lacks a formal procedure to ensure board members and appropriate staff complete required ethics and fiscal training.

Recommendation: Establish procedures to ensure compliance with required ethics and fiscal training by Dec. 31, 2026.

Country Club Agreements

Finding 11: Although the district is permitted to recover the cost of delivering reclaimed water to the Rancho Murieta Country Club, it has not sought reimbursement for more than 37 years.

Recommendation: Determine the cost of delivering reclaimed water and publicly report the lost revenue by Sept. 30, 2026.

Finding 12: The repayment schedule for the district’s loan to the Rancho Murieta Country Club does not fully disclose the interest ultimately owed because it does not account for increases in the Local Agency Investment Fund (LAIF) interest rate.

Recommendation: Report the total interest owed by the Country Club under the loan agreement by Sept. 30, 2026.

Editor’s note: This sidebar summarizes the Sacramento County Grand Jury’s findings and recommendations. The accompanying River Valley Times story provides additional context on several issues, including the district’s recent progress in addressing audit deficiencies, the California Fair Political Practices Commission’s decision not to pursue an enforcement action involving Director Randy Jenco, and a board member’s publicly stated reasons for delaying the search for a permanent general manager.