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PVUSD accepts clean audit; first interim flags enrollment decline and $2.2M projected structural deficit in 25–26
Summary
Auditors gave Palos Verdes Peninsula Unified an unmodified (clean) opinion for FY 2023–24 and the Measure M parcel tax audit showed expenditures aligned with the ballot measure. The board approved the 24–25 first interim budget, which projects a structural deficit of roughly $2.2 million in 25–26 driven by enrollment/ADA declines and recommends discussions on reserves.
The Palos Verdes Peninsula Unified Board of Education accepted the district’s FY 2023–24 financial audit and reviewed its first interim 24–25 budget report at the Dec. 3 meeting.
External auditor Bobby Patel (ID Bailey) presented the financial audit and reported unmodified (clean) opinions on the district financial statements and on federal and state awards; the auditors found no material weaknesses or significant deficiencies. The parcel‑tax (Measure M) performance audit likewise found expenditures aligned with voter‑approved uses.
The board then reviewed the 24–25 first interim report. CFO Kathy (presentation) said the district is filing a positive certification but described several risks and assumptions: current enrollment was reported at 10,172 students (a decline from adopted projections), the state COLA assumption used for 24–25 was 1.07%, and multi‑year projections assume modest COLA increases in later years. Staff cited a projected structural deficit of approximately $2.2 million in both 2025–26 and 2026–27 driven primarily by the lower funded ADA assumptions; the district projects unrestricted general‑fund reserves below the board’s recommended 10% target in future years unless corrective steps are taken.
The audit acceptance and the first interim report were approved by board motions. Staff said they will continue to monitor enrollment and attendance trends, examine budget priorities during January study sessions and present policy options to restore reserve levels as part of the 25–26 budget development cycle.
Key figures discussed in the meeting: unmodified audit opinions for FY 23–24; current enrollment reported at 10,172; LCFF COLA assumption of 1.07% for 24–25; and a projected ~$2.2 million structural deficit in 25–26 under current assumptions. The board accepted the audit and approved the first interim report.
Sources: external audit presentation, CFO first interim presentation, board motions and votes at the Dec. 3 meeting.
