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MJUSD audit returns unmodified opinions; one finding yields $123,229 penalty
Summary
An independent audit for Marysville Joint Unified found unmodified opinions on district financial statements and federal awards but identified one state finding: two teachers on expired substitute permits that generated a calculated cost of $123,229, which staff said will be deducted from LCFF apportionment.
Loretta Mero, a senior auditor from Christie White Associates, told the Marysville Joint Unified School District board on Feb. 10 that the district received unmodified auditor opinions for its 2025 financial statements and its state and federal awards, the most favorable standard report an auditor can issue.
Mero said there were no material weaknesses or significant deficiencies on the financial statements and no findings in the federal audit work. She noted one state finding: ‘‘two teachers were operating on expired substitute teaching permits,’’ which the audit classified as misassignments and produced a calculated cost of $123,229.
‘‘You had an unmodified report, which is the best you can get,’’ Mero told trustees while summarizing the audit packet. She said the district ended the year with approximately $238,300,000 invested in capital assets (an increase of about $12,400,000 from the prior year, driven largely by construction in progress) and long-term liabilities of roughly $265,100,000 (a decrease of about $16,800,000, primarily related to net pension liability).
Trustee Tong Yang asked whether the misassignment cost is an accounting calculation or a charge the district will ultimately repay. A staff member responding during the meeting characterized the amount as a penalty and said, ‘‘it’ll come out of our LCFF principal apportionment’’ and be deducted from monthly state allocations.
Mero said the auditors tested major programs including the special education cluster, Title I and the Child and Adult Care Food Program. The report included one audit finding and no audit adjustments.
The district received detailed pages in the audit packet (the auditor cited pages in the PDF during the presentation) documenting the finding and how the calculated cost was derived. Board members asked clarifying questions during the presentation; the board did not take further action on the audit at the meeting.
Next steps for the district include addressing the finding and documenting corrective actions in the audit response materials required by state audit procedures.
