The AGM shall establish a system of internal controls designed to prevent losses due
to fraud, employee error, misrepresentation by third parties, unanticipated market
changes, and/or imprudent actions by employees of the District. The internal control
structure shall be designed to provide reasonable assurance that these objectives
are met. The concept of reasonable assurance recognizes that (1) the cost of a control
should not exceed the benefits likely to be derived and (2) the valuation of costs
and benefits requires estimates and judgments by management. Compliance with this
Policy and internal controls shall be reviewed annually by the District's independent,
external auditors.
