Audit and finance update: internal audit findings, large transfers and purchase‑service accounts discussed

Finance Director Daniel Prentice summarized the audit and finance committee’s information items on Jan. 12: the monthly capital‑projects report, monthly financials for the general operating fund, weighted student funding (WSF) and Head Start, an internal audit of behavior support/student support services (conducted by Plante Moran), and purchases over $250,000.

Prentice told trustees the district is on track to complete half of the approved four‑year internal audit work plan for FY26 and plans a renewed risk assessment and updated multi‑year audit schedule by year end. Trustees asked for details about large transfers shown in the financial update: the presentation listed $129,700,000 in transfers out, which Prentice explained are transfers from the general operating fund to restricted special revenue and WSF accounts for accounting and programmatic purposes.

Prentice said purchase‑services totals include contracted day‑porter/custodial services, contracted bus drivers and other centrally managed contracts (district outsources some operational services). Trustees raised questions about WSF encumbrances and whether dollars were reaching students; Prentice described a workflow that ties principal requests and strategies to encumbrances and said the district has three annual adjustment windows to reallocate funds as needed.

Trustees also heard a brief update on capital projects and asked for follow‑up on specific schools (Baptist Hill and Cario were discussed for WSF encumbrance timing and variance explanations). The audit findings for student support services prompted discussion about documentation, IEP processes and corrective actions already underway.