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Poway Unified audit: unmodified financial opinion, but auditors flag control gaps and documentation problems with possible fiscal exposure
Summary
Auditors issued an unmodified opinion on Poway Unified’s 2023–24 financial statements but reported internal‑control deficiencies (ASB accounts) and state compliance issues that the district says could cost roughly $51,000 (kindergarten continuance) and an estimated $466,000 (independent study) pending appeal.
Auditors told the Poway Unified School Board on Dec. 17 that the district’s 2023–24 financial statements fairly present its position, but several control and compliance weaknesses require corrective action.
Aubrey Man, an audit partner at Wilkinson Hadley King & Company, said the firm issued an "unmodified opinion," meaning the statements “do fairly represent the financial position of the Poway Unified School District as of June 30, 2024.” The auditors also issued a letter on internal controls and compliance testing that identified three areas of concern.
The audit team flagged a deficiency in controls over Associated Student Body accounts, finding that advisers and students were typing names into approval fields rather than using verifiable digital signatures; auditors recommended digital‑signature software to ensure proper authorization. On state compliance, auditors reported inconsistent kindergarten continuance forms that they estimate cost the district about $51,000 in lost ADA funding. A larger finding related to independent study agreements: auditors identified multiple agreement templates across the district missing required elements under Education Code, and estimated a potential fiscal impact of about $466,000.
District staff described steps already taken. Joy Romero, Executive Director of Finance, told trustees that the district has discarded outdated continuation forms and provided an updated, standardized kindergarten‑continuance form to school sites, and that the district is working with sites and IT to implement digital‑signature solutions for ASB approvals.
Auditors also described the appeal process for state findings. "Once the report is certified by the state controller’s office, the district can request a summary review and present its response to the Education Audit Appeals Panel," the auditor said, adding that most similar findings are resolved in the summary review stage.
Trustees pressed staff on the meaning of a "significant deficiency." One trustee said the language was "concerning" and asked whether the district should treat the finding as a cultural or systematic problem. The auditor cautioned that audit sampling cannot detect every issue but said the district had already isolated sites and programs where the problems were concentrated.
The board voted unanimously to accept the audit presentation and the auditor’s recommendations. Staff said corrective actions and appeals will proceed and that the district expects to return to the board with status updates.
What’s next: district staff will implement the corrective‑action plan, pursue any necessary appeals for state compliance findings, and report back to the board as steps are completed.
