An independent auditor told the Los Gatos Union School District governing board that the district’s financial statements for the 2023–24 school year received an unmodified opinion — the most favorable audit outcome — and the board voted to accept the audit report.

Steven Roche, a certified public accountant with Stephen Roche Accountancy Corporation, presented the audit to the board and described the unmodified opinion as evidence that the district’s financial statements were “presented in accordance with generally accepted accounting principles.” Roche said, “This opinion, once again, is a unmodified opinion, which means that the financial statements contained within this report are presented in accordance with generally accepted accounting principles.”

Roche highlighted several items for context: an unrestricted deficit shown on government‑wide statements driven largely by net pension liabilities, approximately $4.8 million in depreciation expense tied to recent construction activity, and long‑term obligations that include roughly $57 million of outstanding general obligation debt and large net pension and OPEB liabilities. He reminded the board those government‑wide statements can show negative unrestricted results even where operational finances are sound.

The audit report included one finding tied to the Expanded Learning Opportunities Program (ELOP). Roche said the district chose not to operate ELOP and that current audit guidance requires reporting that as a finding; he explained it is not a financial misstatement but a compliance item that may trigger state recovery processes. “This past year, there was one finding and that was dealing with the Expanded Learning Opportunities Program. The district chose not to participate in that,” Roche said.

Board action: A board member moved and another seconded to accept the audit report; the board approved the report with the verbal vote “Aye.” The board’s acceptance starts the follow‑up and any required responses to the auditor’s recommendations.

What’s next: Roche noted this was the final year his firm would present the district audit under the current contract; the district will engage another auditor going forward. District staff and board members thanked Roche and district finance staff for their work and for maintaining what board members called strong financial controls.

The board’s formal acceptance of the audit triggers any statutorily required follow‑up, including responses to audit findings and any state procedures tied to ELOP compliance.