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Independent audit gives Palmdale district a clean opinion but flags internal-control issues
Summary
Christie White auditors issued an unmodified (clean) opinion on the district's 2025 financial statements and bond funds but reported a significant deficiency in internal controls tied to a fund-21 accounts-payable accrual and a repeat state-award finding on CEA reporting.
An independent audit presented to the Palmdale School District board on Feb. 18 delivered an unmodified (clean) opinion for fiscal year ending June 30, 2025, while identifying control weaknesses the district must address.
Austin Papiak of Christie White told trustees the audit concluded with an unmodified opinion for the district and for the bond building funds tied to measures WDD, PSD and PRM. He noted no federal award findings but reported two matters: a significant deficiency in internal controls over financial reporting related to a fund-21 accounts-payable accrual that was recorded in the wrong fiscal year, and a repeat finding on compliance with state award reporting requirements (CEA) that carried no questioned costs.
Papiak recommended the district review year-end adjustment entries and evaluate expenditures tied to the state-award requirement; if the district cannot meet the requirement, he suggested seeking an exemption approval. On bond measure testing, auditors found compliance with bidding and change-order procedures and that sampled expenditures were allowable.
Why it matters: An unmodified opinion confirms auditors found the financial statements materially correct, which supports the district's fiscal reporting. However, the internal-control finding points to process improvements needed for timely accruals and state-award documentation.
Board response and next steps: Trustees and staff asked clarifying questions about the $96 million net position reported in the audit; auditors explained that the number reflects government-wide accounting adjustments for capital assets and long-term liabilities (not cash on hand). The auditor said prior-year findings in many areas have been cleared; the district will follow the auditor's recommendations on accrual review and state-award compliance.
Quotes and attributions: "We gave an unmodified, which is the best, opinion on the school district's audit report," Austin Papiak said.
Ending: The audit will be incorporated into district reporting and staff will work on the recommended adjustments and compliance items.
