Independent auditor gives Measure W a clean opinion; CBOC unanimously approves annual report

The Sequoia Union High District’s independent auditor issued an unmodified opinion on the Measure W bond financial audit, staff told the Citizen Bond Oversight Committee on Feb. 24, and the committee unanimously approved its annual report.

"The audit did not identify any findings, and the opinion was issued as unmodified," Janae Marking, assistant superintendent and chief business officer, said as she summarized the auditors’ conclusions. Staff said the unmodified opinion means there were no reportable findings that would require corrective action.

Marking said auditors tested approximately 80% of line items for the fiscal year and that the audit confirmed the district’s expenditures were aligned with the bond project list and promises made to voters. "This is a clean audit," she said.

Members asked questions about auditor rotation and oversight. Marking said partners within an auditing firm must rotate at a maximum of six years per applicable rules and that the district would provide the committee with the historical rotation information if requested.

The committee then considered the annual report, which the chair had prepared to combine prior materials, fiscal figures and a compliance statement. Chair Sarver moved to approve the report; members voiced "Aye" and the committee recorded unanimous approval. Staff said the report will be presented to the board at a regularly scheduled meeting with a tentative date of March 18.

During Q&A members also asked about bond issuance costs, amortization and timing of future issuances; staff explained issuance costs are paid at closing, vary by series and par amount, and that future issuances are scheduled to meet cash-flow needs as construction proceeds.

The committee took no further formal actions at the meeting beyond approving the annual report.