Board hears cash‑flow projections and a clean audit, but auditors find several state and federal compliance issues

Raphael Guzman, assistant superintendent of business services and chief business official for Inglewood Unified School District, told the board the district’s February beginning cash was about $151 million, with revenues of roughly $9 million and disbursements of about $16 million, leaving an ending balance near $142.9 million and a projected year‑end cash balance of about $127 million.

Guzman cautioned members that cash‑flow projections are distinct from the adopted budget and noted a mid‑year jump in certificated and classified salary expenditures driven by a retroactive payment for a salary increase. He said multi‑year projections currently align with interim budget estimates and that district cash levels remain “very healthy” for a district this size.

Board members pressed Guzman on contingency plans should federal funding streams change. When asked whether a possible reorganization or elimination of the Department of Education would affect the district, Guzman said removing Title I and similar funding would “take an act of Congress” and that the district is monitoring the situation through School Services of California. “We do have contingencies in place that we’re looking at in case that does happen, which we very seriously doubt,” he said.

The board then received the 2023–24 independent audit from Nigro & Nigro. Audit partner Peter explained the audit scope—financial statements, federal and state compliance, internal controls—and reported an unmodified (clean) opinion on the financial statements. The auditors identified five financial statement findings, two federal findings and six state compliance findings (out of 28 areas applicable to the district). The auditors described work to clear prior‑year findings (capital assets tracking, segregation of duties in cash receipts, public contract code compliance for bids) and said a corrective action plan has been submitted to the state accounting office (LEO).

Board members asked why year‑to‑year findings vary. Auditors and staff attributed spikes in findings to incomplete year‑end documentation and to problems discoverable only in closing and pre‑audit processes; Guzman said the district is performing pre‑audits for duplicate pupil counts and improving responses to auditor requests. Auditors and staff said they expect findings to decline in the next audit cycle as corrective actions are implemented.

No formal financial motions (bond sale or budget amendments) were taken at this meeting. Guzman and board members said municipal bond market volatility has delayed a planned bond sale and that staff continue to monitor timing with advisors. Board members also asked staff to look for ways to reduce contracted services by recruiting for positions that can be brought in‑house after salary adjustments improve recruitment.

The board requested additional materials and clearer public accessibility for financial disclosures; several public speakers in the comment period later in the meeting raised similar transparency and budget‑detail concerns.