District posts clean audit; auditors note $1.9 million year-end adjustments due to timing

District fiscal staff told the board the 2023–24 independent audit produced unmodified opinions for financial statements, federal compliance and state compliance — commonly called a "clean audit" — while also identifying adjustments to year-end accounting entries totaling about $1.9 million.

Elaine Mendoza, the district’s director of fiscal services, presented the audit results and said the auditors reported no material weaknesses and no findings of material noncompliance for federal or state programs. Mendoza and district staff explained the adjustments were timing differences: required closing entries depend on information from external agencies such as the county and on market valuations that were not available at the district’s initial year-end close. The adjustments increase the district’s fund balance and are described by staff as routine closing activity rather than transactional errors.

Board members pressed staff for detail. Trustee Quilpas Barrera asked whether $1.9 million constituted a “minor error” and what would happen if auditors had not caught it. Mendoza and district leadership said the adjustments reflect late-arriving statements (for items such as worker’s compensation and pooled accounts) and that the entries are standard for year-end financial reconciliation. They said transaction activity during the fiscal year remained compliant and that auditors will assist the district with entries so next year’s close will be smoother.

Why it matters: A clean audit indicates the district’s financial statements are presented fairly under generally accepted accounting principles. At the same time, the magnitude of closing adjustments drew questions from trustees about internal controls and timeliness of information from external partners. District staff said they will work with auditors and the county to improve timing.

What happened at the meeting: The district’s auditors (Christie White referenced in the presentation) issued an unmodified opinion; staff described adjustments of about $1.9 million and explained they increased the fund balance and resulted from timing differences when closing the books. Trustees requested page references to the report and asked for follow-up reporting in the district’s next internal financial update.

Next steps: District staff said they will input the auditors’ final entries into the accounting system (Escape) and present the reflected changes and updated internal reports by the next financial reporting period in March.

Speakers cited: Elaine Mendoza (Director of Fiscal Services); Mr. Abbasi (district staff who responded in Q&A); auditors (Christie White referenced).