Bassett Unified audit returns unmodified opinions, flags teacher-salary and accounting issues

Auditors told the Bassett Unified School District Board of Education on the evening the district’s fiscal-year 2023–24 financial statements and related state and federal compliance opinions received unmodified opinions, the highest level of assurance an auditor can give.

Natalie Palma, audit director with Christie White, told the board the audit covered district funds, capital assets, long-term debt and compliance with state and federal laws and included school-site testing, payroll and purchasing controls, and a single-audit review of major federal programs.

“The financial statements, state compliance opinion, and federal compliance opinions were all unmodified, which is the best opinion that you can receive,” Palma said.

The auditors reported two findings. The first concerned misstatements in ending cash and fund balances; the firm identified adjustments that had not been recorded for the Child Development Fund and the Student Activity Fund and said corrective entries were made to properly state those balances.

The second finding related to classroom-teacher salaries. Palma said that under the California Education Code a unified school district must spend at least 55% of current educational expenses on classroom teacher salaries. For 2023–24 Bassett Unified failed to meet that minimum by 4.63%, a shortfall the audit attributes to one-time COVID-era federal funding and other large one-time receipts that raised total expenditures. Palma said the total questioned cost is $2,600,000 and that a statutorily available waiver can be filed if it has not already been submitted.

Palma also described the audit’s program testing: the firm selected and tested expenditures under the Education Stabilization Funds (ESSER) and GEER funding streams and Title I program activity, and reviewed June 30, 2024 balance-sheet accounts, bank reconciliations, debt statements and capital-asset listings.

Maricela Barba, identified at the meeting as the district’s chief business officer, was introduced during the presentation and was listed by the audit team as the district contact who assisted in the audit work.

The auditors recommended that the district strengthen internal controls to ensure account balances are accurately stated and to address the classroom-teacher salary calculation going forward. Board members did not take formal action on the presentation during the meeting; the audit was provided as an informational report and the audit firm offered to work with the business office on corrective steps.

The audit report and related documentation were available to the board and public as attachments to the meeting agenda.

Ending: The audit presentation closes a routine external review cycle for the district; the report’s findings will be addressed by district business staff and referenced in next year’s financial reports.