Lodi board accepts district audit for year ended June 30, 2023 after debate over timing and two minor findings

The Lodi Board of Education voted on Dec. 18, 2024, to accept the district’s audit for the year ended June 30, 2023, after members questioned the timing of the report and discussed two minor findings identified by the auditors.

The vote to accept the audit was part of a consent block for finance items (FB1–FB10). The motion was made by Miss Acaglia and seconded by Dr. Sima. The roll call on the finance block recorded yes votes from Miss Acaglia, Mr. Bautista, Mr. LaFranca, Dr. Sima and Board President Nancy Cardone; Mr. Mastrofilippo recorded a no vote on FB6. The motion carried.

The audit overview noted that the district has moved from a prior year that contained roughly 13 audit comments—three of which were characterized as more significant—to a current audit that contains two minor comments. One recommendation concerns charging transactions in the energy savings lease escrow account to the uniform minimum chart of accounts; the other recommends more timely deposits of athletic and student activity receipts, with the auditor citing a reasonable deposit period of 48 business hours.

"We are in strong financial standing," said Mister Reneck, who presented the audit overview to the board and described the two current-year comments as "minor audit comments." He said the expenditures in question were legitimate but were charged to incorrect budgetary accounts in one instance, and that athletic receipts had not always been deposited promptly in another instance.

Board members pressed for clarity on timing. Mr. Mastrofilippo asked whether the board was required to act that night; Reneck replied that state reporting requirements require submission of the corrective action plan shortly after the start of the new year, and that the board must accept the audit to enable that upload.

Reneck said the district would address the items through its corrective action plan and described the recommendations as "housekeeping" rather than material concerns. He also said the district was among the earlier audited districts and that the timing reflected both district and state document availability.

Actions

- Action: Accept audit for year ended June 30, 2023 (FB6). Motion: Miss Acaglia; Second: Dr. Sima. Vote: Miss Acaglia — yes; Mr. Bautista — yes; Mr. LaFranca — yes; Mr. Mastrofilippo — no; Dr. Sima — yes; Miss Cardone — yes. Outcome: approved. Notes: acceptance required to allow upload of corrective action plan per state reporting timeline.

Clarifying details

- Prior-year audit (year ended 6/30/2023) contained roughly 13 audit comments, including three significant comments; current-year audit has two minor comments (transcript discussion). - Audit findings cited: (1) transactions in the energy savings lease escrow account charged to incorrect chart-of-accounts lines; (2) student activity and athletic receipts not always deposited in a timely manner (auditor cited 48 business hours as a reasonable deposit window). - District staff said the items will be addressed in the corrective action plan the board is required to approve to meet state upload deadlines in early January (exact statutory citation not specified in discussion).

Why this matters

Accepting the audit starts the formal corrective-action process required by state reporting rules and signals the district’s current financial position to the board and the public. Board members expressed a desire for earlier delivery of future audits but were told additional state-provided documents and procedures affect timing.

What’s next

District staff said they will draft the corrective action plan and submit it under the state timeline; board members asked for follow-up on specific administrative recommendations in the management report.