Palmdale Aerospace Academy board accepts clean audit and approves second interim financial report
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Summary
The board approved the academy's consolidated audit, which carried a clear opinion and no current findings, and adopted the second interim financial report reflecting Jan. 31 results and multi-year projections. Administrators said the district remains solvent but noted tightening covenant coverage in later years.
The Palmdale Aerospace Academy board on Tuesday approved the academy's consolidated audit and adopted the second interim financial report for fiscal year 2025-26, trustees heard.
Miss Zelser, the auditor who presented the consolidated audit, told trustees the financial statements "present fairly" and that auditors found no material weaknesses or current-year findings. "On page 33 you will see there were no audit findings," she said, adding that prior-year findings had been fully implemented.
The board also voted to accept the second interim financial report, presented by the chief business official, which reflects revenues and expenditures through Jan. 31 and projects multiyear impacts. The presenter said projected average daily attendance assumptions and certain one-time expenditures drove revisions to revenue and expenses and that the district remains in a positive net position for the near term.
"When we calculate the bond covenants, we are projecting a 1.21 coverage ratio, which is above the 1.2 requirement," the chief business official said, noting the district is close to the covenant minimum in later projections and that restricted textbook-adoption spending will affect unrestricted cash in future years.
Board members asked questions about cash-on-hand, bond covenants and how one-time funds and learning-recovery grants were being spent. The chief business official said federal reimbursements are recognized when expenditures occur and that ongoing contract and salary increases account for most of the projected declines in unrestricted net position.
Trustees voted to approve both items during a single consent action. The board was told the audit and interim report materials are available in the meeting packet for detailed figures, including capital-asset schedules and notes on bond obligations.
The board adjourned to closed session later in the meeting and reconvened with no reportable closed-session actions.
