In addition, the commission said, when the board disclosed the shortfall, it overstated the effect of rising construction costs.
There were 11 more controller mistakes in the next seven months, the board disclosed, adding that these "justify the highest level of F.A.A. attention and action."
But the board did not disclose the results of the review.
Neither the board nor Mr. Mezzatesta would disclose the terms of the settlement.
Yet the board submitted the memo secretly and never publicly disclosed its concerns about search-warrant practices.
As a result, they are asking that the 2005 board elections be voided and another election be held after the board discloses details of the search.
The board of supervisors disclosed that management of the fund would be taken over by Matt Raabe, the county's assistant treasurer.
Prime's board also disclosed that it had approved a severance plan for 19 key employees of the company.
In December 2001, the board of Homestore disclosed the overstatement and its top executives resigned.
Although neither the box, the board nor the instructions disclose it, each of the 25 companies whose products are listed paid $30,000 for its spot on the board.