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After audit, Ketchikan school board and borough plan liaison meetings, internal review and amended budget to address $5.4M liability
Summary
In a work session the board and borough discussed a $5.4 million liability owed to the borough. Borough manager Ruben Duran proposed an internal operational review (BDO), monthly liaison meetings, and converting the liability to a long‑term note; the board agreed to pursue the borough audit, explore forensic/operational audits, and prepare an amended budget for Dec. 17.
Following the audit presentation, the board entered a work session to focus on the $5.4 million liability the district shows as due to the borough and to identify next steps for oversight and repayment.
Borough Manager Ruben Duran told the board that the borough is not disputing the auditors’ accrual accounting but said the borough’s review points to systemic cash‑flow and spending practices by the district. “Where did the cash come from?” Duran asked, arguing the district has too often drawn on future dollars and deferred payments, creating the accruals that now appear as liabilities. He said the borough has asked BDO to perform an internal operational review and is preparing monthly liaison meetings…
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