Board approves second interim and audited financials; audit finds accounts-payable timing and capital-assets gaps
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Summary
Trustees approved the 2025–26 second interim and the 2024–25 audited financial statements. Officials cited an $800,000 Genentech-related revenue adjustment, ongoing special-education cost pressure, and audit findings about late invoices and fragmented capital-asset records; management outlined an ERP migration and consultant inventory plan.
The San Mateo-Foster City School District Board of Trustees on Wednesday approved the district’s 2025–26 second interim financial report and the 2024–25 audited financial statements.
Patrick Gaffney (speaker 9), the district’s finance lead, summarized the second interim and multi-year projections, saying the district expects modest property-tax growth and is integrating enrollment forecasts and cost-of-living adjustments into its assumptions. Gaffney told trustees that a county appeal involving Genentech required an $800,000 downward adjustment to current-year revenues.
On the audited financial statements, presenters working with Shivan and Associates reported two audit findings. The first involved accounts-payable timing: several invoices for one contractor were paid in 2025–26 though the expense should have been recognized in 2024–25. The second concerned capital-asset reporting: the district had managed assets across multiple legacy systems and an Excel spreadsheet, producing gaps and a material variance tied to recent bond-project activity.
An auditor (speaker 18) described planned corrective steps and the district said it will migrate capital-asset management into a single ERP (Frontline) and hire a consultant to inventory and validate assets, after which depreciation schedules will be generated automatically. Gaffney said the corrective action plan and ongoing auditor engagement should prevent recurrence.
Board members asked whether the findings reflected a personnel turnover problem and whether the district would be able to correct capital-asset balances by next year; presenters said the inventory and ERP migration should produce a new baseline and resolve the material discrepancy. The board approved both the second interim and the audited financial statements by recorded voice vote (each motion passed 5–0).
Next steps: the district will implement the corrective action plan, complete the inventory, and continue audit coordination ahead of the next audit cycle.
