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District audit flags ASB controls and a $370,000 ELOP compliance penalty
Summary
An independent 2023–24 audit identified two findings: internal-control weaknesses in Associated Student Body accounts and a compliance issue under the Expanded Learning Opportunities Program that produced a $370,000 reduction to next year’s ELOP allocation; the board accepted the audit and staff described corrective steps.
At the Jan. 15 Chico Unified Board meeting staff presented the district’s 2023–24 independent audit carried out by Horton, McNulty & S. (HM&S). The auditors reported two findings the district is addressing: internal control weaknesses in associated student body (ASB) accounts and a compliance finding tied to the Expanded Learning Opportunities Program (ELOP).
Charisse (staff) told trustees that the ASB finding prompted training with the Fiscal Crisis & Management Assistance Team (FCMAT) and additional local site training to strengthen controls. On the ELOP compliance issue, she said the district did not offer the full 30 additional days for sixth graders in a manner that met program requirements in 2023–24; as a result, Chico Unified was assessed a $370,000 penalty that “will be recorded as a part of restricted revenue this year in the 2024–25 school year.”
Board members sought clarification about the penalty and asked what steps have been taken. Staff said they adjusted program scheduling in 2024–25 to ensure program days for sixth graders meet the nine-hour threshold that counts toward compliance and that the $370,000 assessment is reflected as a reduction in next year’s ELOP allocation rather than a cash repayment.
The board discussed the audit, the corrective training efforts for ASB accounts and affirmed acceptance of the audit report. Trustees asked staff to continue monitoring compliance and report back if additional corrective actions or budget impacts are identified.
