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Board accepts FY 2024–25 audited financials (unmodified opinion) and second interim report; staff notes revenue risks
Summary
An external auditor gave the district an unmodified opinion on its FY 2024–25 financial statements while identifying material weaknesses related to federal awards; fiscal staff presented a second interim report and positive certification but flagged revenue reductions tied to declining unduplicated pupil percentage and enrollment.
The San Bernardino City Unified School District board accepted the district’s audited financial statements for fiscal year 2024–25 and received a second interim budget update through Jan. 31, 2026.
An auditor presenting the report said the district earned an "unmodified opinion" on its financial statements, the highest level of assurance auditors provide. "On the financial statements, the district earned an unmodified opinion," auditor Bobby Patel said during his presentation. Patel also told the board that auditors identified material weaknesses related to federal awards and provided details during the report; he characterized the overall audit as a clean bill of health on the district’s financial statements while noting specific findings on award compliance.
Fiscal staff then presented the second period interim report and multi‑year projections, saying the board’s current certification is "positive." Finance staff noted a decline in the district’s unduplicated pupil percentage, which reduces LCFF supplemental funding and lowers revenue projections. The presenter said staff are working with Sacramento partners to mitigate the impact and are pursuing strategies to smooth expenditures over the multi‑year outlook.
Board members asked about Prop 98 and the governor’s set‑aside of roughly $5.6 billion referenced in the state budget; district staff said they expect some or all of that set‑aside to be restored in the May revise, which would help districts statewide. Staff also said the district can access state facility matching funds (Prop 2) and that prior needs assessments estimated infrastructure deficits in the hundreds of millions and total needs potentially approaching $1 billion.
Actions taken: the board voted to accept the annual audited financial report and to approve the second interim financial report (motions moved and carried by roll call). Staff committed to provide the board with a Friday update that includes a campus‑level cost breakdown and further analysis of matching funds and hardship program eligibility.
What to watch: the May revise and any changes to Prop 98 funding, the outcome of the tracking poll and community outreach related to facilities, and the campus‑level cost detail that staff will deliver to the board.
