District finance staff updated the board on the annual audit, current-year revenue and expenditure trends, and pending grant applications that could affect the 2025–26 budget.

Christine (staff member) told the board auditors were reviewing the district's unaudited actuals for the prior year and that the audit report will be presented to the board in December and filed with the county office by Dec. 15. She said auditors review a broad list of items including payroll, contracts, inventory, attendance records and student-body financial records.

Christine summarized state and federal economic indicators and then reviewed internal projections. She said the district's preliminary projection for the current fiscal year shows higher revenue than the earlier projection because of increased enrollment and higher special-education funding; the district is now projecting a smaller draw on reserves than was shown in the second interim report. Christine said several revenue items are still pending and usually arrive in November, including lottery and some federal categorical funds.

Staff outlined several grant applications and awards under review: an LADWP grant (nearly $500,000) to replace gas- and diesel-powered maintenance equipment with electric/battery equipment (pending board approval by LADWP), a School Violence Prevention Program grant (about $500,000) and a CDE middle/early college grant ($250,000) to support dual-enrollment pathways. Christine said these grants are not yet built into the budget until the district receives contracts.

Board and staff discussed multi-year budgeting process and timing: Christine said auditors' reviews and receipt of seasonal revenue items will inform the first interim budget in November. Staff also said settlement costs from bargaining that concluded after the adopted budget will be incorporated into the updated forecast.

Why it matters: the district's general fund outlook depends on enrollment, state apportionment timing and one-time grants; the finance update framed near-term risks and the items that will be incorporated in the November interim budget.

What's next: staff will return in November with a first-interim budget update that incorporates audit outcomes, updated enrollment/attendance assumptions, and any new grant awards or contract changes.