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East Side Union High trustees accept clean FY 2023–24 audit; auditor recommends time-accounting practice for bond salaries
Summary
The East Side Union High School District board on Jan. 23 received and approved the fiscal year 2023'24 audit, which delivered a clean opinion on the district's financial statements and bond performance audits while recommending improved time accounting when charging salaries to bond funds.
The East Side Union High School District board on Jan. 23 received and approved the fiscal year 2023'24 annual financial audit and related bond performance audits after a presentation by Jeff Nigro of audit firm Nigro & Nigro.
Nigro told the board the firm issued an unmodified (clean) opinion on the district's financial statements and similarly clean opinions for the district's Measure G and other bond funds and performance audits. He said the audit work totals roughly 500 hours and that the firm is already planning the 2024'25 audit cycle.
The auditor singled out two minor compliance findings'one federal and one state'and several recommendations that did not rise to the level of findings. For each bond audit he reported a single recommendation about time accounting: when the district charges employee salaries to bond funds, Nigro recommended the district maintain documentation that justifies the percentage of time charged to bond projects.
Why it matters: bond measures approved by voters under Proposition 39 require annual financial and performance audits to ensure bond proceeds are spent only on authorized projects. Clean opinions support public accountability for bond spending; time-accounting practices affect audit defensibility when salaries are charged to bond funds.
Nigro explained the time-accounting recommendation is best practice rather than a statutory mandate. He cited a 2004 California Attorney General opinion that allows charging salaries to bond funds when the employees' work is directly related to bond projects, and said the district should follow federal-style time-accounting guidance when allocating salaries to grant- or bond-funded work.
Board members asked whether the recommendation is an enforceable rule from FCMAT (the Fiscal Crisis & Management Assistance Team). Nigro said it is not a legal requirement from FCMAT but a recommended control consistent with federal program guidance where timekeeping is required.
The board moved to approve the audit after the presentation. The motion was moved by Ariara and seconded by Cortezi; the board recorded a 5-0 vote in favor.
What the report recommends next: the auditor noted ASB (Associated Student Body) accounting suggestions in the report and offered guidance on improving time documentation. Staff said they will post the report and begin planning for the 2024'25 audit.
The board accepted the report and closed discussion.
