County places fiscal expert in Burbank Unified after 'lack of going concern' designation

The Los Angeles County Office of Education notified the Burbank Unified School District on Jan. 7 that it had determined the district presented a “lack of going concern,” and the county placed a fiscal expert on site to work with district staff, officials said at the board’s Jan. 15 meeting.

Octavio Castello, a county business adviser, told the board that the county’s action followed a series of personnel vacancies and reviews of the business office. “Primarily, this is due to the number of vacancies in your business operations in your office,” Castello said, and he described recent resignations and investigations in payroll and facilities that drove the county’s concern. Castello said the district’s first interim certification is currently positive but that the county’s warning should be heeded.

The county expert, introduced as Rick Hollis, is contracted to visit at least once a week and to work directly with business‑office staff and the superintendent to strengthen controls. Board members were told the engagement runs through June 30 and can be scaled back if fiscal conditions improve. The county will initially pay the expert’s fees and the district is responsible for reimbursing approximately 75% of certain costs, Castello said.

Interim Superintendent Dr. Macias acknowledged the gravity of the designation while stressing that the district is taking corrective steps. “We are now in the middle of bearing the responsibility for it,” he said, adding that district leaders are filling vacancies and coordinating with the county and outside investigators. He told the board the district has requested additional information and will continue to update trustees as investigations conclude.

Board members and speakers in public comment pressed for transparency about three investigations mentioned by the county: a district facilities review, a payroll review, and a separate investigation that had been referenced previously. The board president said one facilities‑related review had been completed and that the district had received a confidential personnel report; the results of an outside probe by the Sobel Group were still pending, trustees said.

The immediate, formal consequence of LACOE’s designation is increased county oversight and available tools to direct timelines or to stay certain board actions, not an automatic takeover. Board members asked staff to provide timelines for follow‑up reporting and for clarity on the county‑district cost arrangement. County and district leaders said they will return with recommended next steps and regular updates to the board.