External auditor gives clean opinion on most funds; board debates forensic audit

Meredith Lipson, partner with Walden and Shinken, told the board the district’s 6/30/2024 audit was completed in September and the firm issued an unmodified (clean) opinion on most government and major fund statements. Lipson said the firm issued a qualified opinion on the School Nutrition Fund tied to difficulty reconciling FY2023 inventory that carried into FY2024; staff have rectified software issues and the auditor said she did not anticipate the same issue in FY2025. She summarized key financials: governmental net position about $420,000,000, net pension/OPEB liabilities approximately $819,000,000, total expenditures about $352.9 million (over a budget of roughly $318 million) and a decrease in net position of about $11 million.

Later in the meeting Board member Sabrina Hill moved for an independent forensic audit covering fiscal years 2020–2025, requesting a deep-dive review “for transparency.” Lipson and staff cautioned that a full forensic audit examining every transaction across all funds could cost several hundred thousand dollars and recommended that, if the board wanted targeted review, it specify areas for agreed‑upon procedures instead (narrower, less costly engagements). Members debated whether to issue an RFP and whether more specificity was required before authorizing a forensic engagement; the transcript records discussion and a roll call to vote but does not record a final tally or a definitive outcome.

The auditor also reviewed four repeat findings (reporting of receivables/revenues, accounts payable/retainage, depreciation expense, interfund balances) and management recommendations to improve processes. Finance leadership said they expect those findings to be addressed for FY2025.