The Birmingham Community Charter High District board accepted an independent audit showing no material weaknesses and heard an interim financial briefing on delayed state and federal revenues.

Auditor Charles Hudson Allen, presenting via Zoom for the district’s auditing partner, told trustees the financial statements required no adjustments and that no material weaknesses or significant deficiencies were identified. He said the district’s current ratio was about 2.6, cash on hand equated to roughly eight months of operating expenses, and the change in net assets for the year showed a positive movement of about $1.3 million (with much of that figure attributable to noncash items).

The audit presentation highlighted program-spending allocation and fiscal controls. Management’s functional expense estimate was roughly 71% to program services and 28% to general and administrative costs — a ratio the auditor characterized as healthy. The auditor recommended improving fixed-asset capitalization and tracking to ensure accuracy in asset useful lives and depreciation schedules.

Board members asked about areas for improvement; the auditor pointed to fixed-asset processes and recordkeeping as the primary area to strengthen.

School finance staff then presented the first interim budget monitoring report and an economic context summary based on an external UCLA Anderson forecast. Staff said the district had received about 38% of expected revenue and was roughly 42% through the fiscal year in expenditures. They reported delays in several categorical revenues — specifically Title IV funds, Perkins funds, the state lottery allocation, and other block grants — likely linked to a recent federal shutdown and later federal compliance supplements.

Staff also listed several grant applications under consideration or recently submitted, including a Department of Justice application for approximately $1,000,000 and other competitive grants; awards had not been announced. Administrators said they would update the budget after the governor’s January budget proposal and perform required revisions in February.

The board moved to accept the audit report and acknowledged the interim financial review; the audit was later approved as part of the consent/action items.

The board was advised to expect upcoming state compliance changes (LCAP updates, independent-study revisions and attendance-recovery provisions) and to plan accordingly in the next budget cycle.