Board approves corrective action plan after audit flagged seismic reimbursement controls

District staff presented a corrective action that the auditors flagged related to seismic grant reimbursements and internal controls. Staff explained that some project expenditures occurred and the state reimbursements arrived in a subsequent fiscal year, effectively causing the district to temporarily front district funds while state reimbursements lagged.

The staff report said the items were largely reporting and timing issues with state reimbursement submissions and that they had implemented process changes to prevent recurrence. The superintendent/staff asked for the board’s formal approval of the corrective action plan acknowledging the issue and the steps taken. A motion to approve the corrective action plan was made, seconded and approved by recorded vote.

Board members asked whether the corrective action would require further oversight or escalation; staff said no additional audit action was required beyond the formal corrective action submission and that the district was not at risk of a single-audit requirement this year because federal funding thresholds were not exceeded.