Auditor issues clean opinions for district financials and bonds; county office cites projected operating deficit

An independent audit presentation to the Lawndale Elementary School District board reported unmodified opinions for the district’s financial statements, federal‑awards testing and state compliance testing, while noting a current‑year finding related to classroom teacher salary reporting carried over from the prior year.

"You could see that for the financial statements, we issued an unmodified opinion," Dr. Ho, the district’s auditor from the engagement firm, said during the board meeting, summarizing the results. He said the firm also issued unmodified opinions for audited federal programs, including special education and Title I, and for the bond performance audits for Measures L and EE.

The auditor said the only current‑year compliance finding was related to classroom teacher salaries and that it persisted from the prior year. Dr. Ho told trustees the finding arose in part from one‑time pandemic funding and that the district received a clean opinion despite the finding because of the circumstances documented in the audit.

County office correspondence and budget outlook

Clerk Shirley Rudolph read a letter from the Los Angeles County Office of Education that said the county superintendent reviewed the district’s 2024‑25 first interim report "pursuant to Education Code section 42131" and concluded the district should be able to meet its financial obligations for the current and subsequent fiscal years. The letter noted the district’s projected operating deficit of approximately $6,360,000, representing about 10.954 percent of the district's unrestricted general fund expenditures for 2024‑25, and recommended continued monitoring of enrollment, attendance and staffing to manage the projected shortfall.

"Our analysis of the data provided indicates that the district should be able to meet its financial obligations for the current fiscal year and subsequent two fiscal years," the letter read, according to the clerk’s on‑screen reading.

Bond audits

The auditor also reviewed bond measures. For Measure L and the new Measure EE, the audit report included unmodified financial‑statement opinions and performance testing that did not identify noncompliance for the work sampled. The auditor noted there was limited activity for Measure EE because funds were issued recently; nonetheless, testing indicated expenditures were being accounted for in accordance with voter authorizations.

What trustees asked and next steps

Board members asked whether additional compliance risks were expected; Dr. Ho encouraged district staff to use state and county training resources and offered the firm’s support for compliance questions. Superintendent Jabri Santana Castro and district finance staff were present and were thanked by the auditor and trustees for cooperation during the audit.

The county office letter and the audit materials were filed with the board as part of the meeting record; trustees later voted to accept and file the correspondence (see "Votes at a glance" in the meeting roundup).