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CFO warns audit may slip and budget faces federal and local uncertainties
Summary
CFO Kathleen Jackson told the board the FY24–25 audit likely will not meet the Oct. 31 target because of city policy changes and missing federal guidance; she warned the district used over $10 million of one‑time fund balance in the adopted budget and flagged possible federal cuts including Title I.
Chief Financial Officer Kathleen Jackson told the board Oct. 28 that the division’s external audit for fiscal 2024‑25 may be delayed beyond the usual Oct. 31 target because of recent changes to city policy on school funds and outstanding federal guidance from the Office of Management and Budget.
Jackson said the division is still working through implications of a city policy change that affects the ability to retain year‑end fund balance and that staff and auditors will meet with city finance officials to clarify next steps. She added that guidance needed to audit federal expenditures has not been released by the OMB and that a potential federal government shutdown adds uncertainty to timing. “We will not be able to meet our typical October 31 deadline of completing the audit,” Jackson told the board.
Jackson also reviewed near‑term budget context: the adopted current‑year budget projected using more than $10,000,000 of fund balance and the division has already made multi‑year compensation decisions that affect future budgets. She urged the board to expect possible expenditure reductions if federal, state or local revenue falls short and noted the governor’s proposed biennial budget (available around Dec. 15 in a typical year) could change given political turnover.
The board engaged with Jackson briefly; no formal vote accompanied the budget update. The board will continue budget development work at upcoming meetings as the division integrates its strategic plan into the budgeting process.
