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Auditors give unmodified opinion; second interim shows positive certification amid enrollment and unduplicated pupil declines
Summary
Independent auditors issued an unmodified opinion on the district's FY 2024–25 financial statements, while district staff presented a second interim budget showing positive certification but projecting reduced revenues due to lower unduplicated pupil percentages and a ~1% enrollment decline; staff flagged a material weakness related to federal awards and said they would provide additional cost and projection detail.
An external audit firm presented the district's fiscal year 2024–25 audited financial statements and delivered an unmodified opinion on the financial statements and state awards, district staff reported at the board meeting.
Bobby Patel, representing the audit partner, told the board the district earned an unmodified (clean) opinion on its financial statements and on state awards; auditors identified a material weakness related to federal award reporting. "On the financial statements, the district earned an unmodified opinion," Patel said. "There were no significant deficiencies; there was a material weakness identified on federal awards."
Following the audit summary, Chief Financial Officer Terry Komnick presented the second period interim financial report as of Jan. 31, 2026. Komnick said the district remains in positive certification. He outlined multi-year projections that reflect a reduced unduplicated pupil percentage (the metric used in LCFF calculations) compared with prior estimates and noted an approximate 1% enrollment decline. The district's presentation listed key assumptions including a 2.41% COLA and the governor's January budget proposals; Komnick said the May revise may restore set-aside funding.
Trustees asked whether the district faces immediate shortfalls and pressed for more detail regarding the impact of unduplicated pupil percentage declines on revenues. Komnick said the change was reflected in the revenue projections and that staff would continue to work with Sacramento partners to mitigate impacts and provide updated figures in follow-up materials. The board voted to accept the audited financial report and approved the second interim report.
