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FCMAT tells board district shows moderate fiscal risk, flags position control and internal‑control gaps
Summary
FCMAT presented a fiscal health risk analysis that calculated a moderate risk (~36.9%) but assigned a high risk rating because of material‑weakness triggers; the board and staff discussed next steps including position control improvements, separation of duties, and potential FCMAT technical assistance.
The Fiscal Crisis & Management Assistance Team (FCMAT) presented its fiscal health risk analysis for Hacienda La Puente Unified School District at the Aug. 14 board meeting, describing a calculated moderate risk score (about 36.9%) but an assigned “high” rating because the review found material‑weakness indicators.
Robbie Montalbano, who led the assessment, said the study looked at 20 key areas—including budgeting, cash management, enrollment/ADA, collective bargaining disclosures, internal controls and position control—using interviews and documents from the district’s second interim financials. "A higher score indicates higher risk," Montalbano said, and she emphasized that an elevated rating does not mean insolvency but does identify areas for prioritized improvement.
FCMAT highlighted several areas that drove the rating: an informal or manual position‑control system that makes errors and increases risk; opportunities to strengthen segregation of duties and internal‑audit processes; and the need for clearer budget assumptions and more transparent collective‑bargaining disclosures. On the question of next steps, FCMAT recommended prioritizing position control and separation of duties, establishing an internal audit process, and pursuing targeted technical assistance—either informal "phone‑a‑friend" support from FCMAT or a formal assistance contract.
Board response: Trustees pressed for specifics and asked FCMAT whether it could provide technical assistance. FCMAT said it offers follow‑up support and can help the district implement changes; trustees also discussed using the FCMAT report as a roadmap for reducing the operating deficit and prioritizing tasks that would most quickly reduce fiscal risk.
Why it matters: The district’s finances and controls affect staffing, program stability and the board’s ability to meet instructional obligations. FCMAT’s assessment provides a diagnostic and a set of practical recommendations that the board and staff can use to reduce fiscal risk.
Next steps: The board directed staff to consider FCMAT recommendations, prioritize fixes to position control and separation of duties, and to bring back a plan for how FCMAT assistance will be used going forward.
Provenance: FCMAT presentation and Q&A (topicintro: SEG 707; topfinish: SEG 2440).
