District audit finds internal‑control gaps and flags independent‑study documentation that could cost $2.3 million

The district's annual audit, presented by Aubrey Mann of Wilkinson Hadley King, concluded with an unmodified opinion on the district's financial statements but identified several compliance and internal control matters the district must address.

Mann told the board the firm sampled employee records and found 43 employees with missing or prematurely disposed I‑9 forms; the district subsequently obtained replacement forms. She also described contract and program findings for charter programs and the short‑term independent‑study program. "We identified noncompliance in state programs, including the independent study documentation requirement that became effective in September 2024," Mann said. For the independent study issue the auditors estimated a potential fiscal impact of about $2,300,000, but emphasized that the finding is appealable and the district may pursue summary review or waiver.

The audit also identified class‑size and ratio noncompliance at one charter (labeled Chula Vista Learning Community Charter School in corrected materials) with a potential $92,000 penalty tied to transitional kindergarten ratios. Mann said the district has already amended the contract language identified as missing and will pursue appropriate appeal and correction procedures.

Trustees asked for corrections to school names in the report and for the district to start the appeal process when the state certifies the audit. Mr. Pong and district staff said they will pursue summary review and other remedies, and reported that corrective actions — including amended contracts and revised independent‑study forms — were already underway.

The board voted to accept the audit report. Staff said they will provide updates on the status of appeals, contract corrections and any fiscal determinations from the education audit appeals panel.