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Auditors give Ocean View unmodified opinions; note depreciation reporting weakness and projected 2024–25 deficit
Summary
External auditors reported unmodified opinions on the district's financial statements and federal/state compliance. They identified a material weakness in capital asset depreciation reporting and noted the district projects a 2024–25 general‑fund deficit tied to the end of one‑time COVID funding and rising long‑term liabilities.
Auditors presented the Ocean View School District's annual financial statements and related compliance reports at the Jan. 28 board meeting and delivered unmodified (clean) opinions on the district's financial statements and major federal programs.
The auditor said an unmodified opinion represents the highest level of assurance. The report identified a material weakness related to the way the district's system calculated depreciation for capital assets; the auditor stated there were no fiscal implications tied to the calculation error but recommended corrective steps.
The auditor also highlighted a multi‑year trend: while the district recorded operating surpluses in two of the three prior years, the adopted 2024–25 budget projects a deficit. The presenter attributed that trend partly to the exhaustion of one‑time COVID relief funding and rising long‑term liabilities tied to general obligation bonds, pensions and OPEB.
A separate performance audit of Measure R expenditures found that 84% of sampled transactions matched the ballot language and constitutional spending restrictions; that audit also received an unmodified opinion with no material weaknesses.
Trustees asked questions and received clarifications about specific audit schedules and noted the need for a plan to address the projected deficit. The auditors offered to answer further technical questions and to work with district staff on corrective items.
Provenance: auditor introduction and annual financial audit presentation occurred from SEG 111 through SEG 191; Measure R performance audit was presented SEG 192–219.
