State Auditor Mike Foley said the audit was prompted by a $169,000 tax lien filed against the district by the Internal Revenue Service over unpaid payroll taxes.
The district allegedly failed to send in the taxes for the first, second and third quarters of 2010. Dennis Hadden with the district's accounting firm, Dana Cole and Company, says the problem was caused by a new district employee who wasn't familiar with the electronic process used for payroll.
Foley says he expects to release his findings in the next few weeks. If the tax issue was caused by a clerical issue, no further action will be taken.