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Auditor: bond financial and performance audits receive clean opinions; a few draft corrections required
Summary
Independent auditor Nathan Edelman told the Citizens Bond Oversight Committee the districtreceived unmodified (clean) opinions on both the financial statement and performance audits for the 2024—25 year; auditors reported no allowability findings but the committee flagged several draft footnote and narrative number inconsistencies that will be corrected before final issuance.
An independent auditor told the Citizens Bond Oversight Committee that both the financial statement audit and the performance audit for the 2024—25 bond programs received unmodified ("clean") opinions, signaling no reportable allowability findings for how bond revenues were spent.
"The bottom line audit result is kind of what's on this slide here," Nathan Edelman of ID Bailey told the committee, adding the performance audit and the financial statement audit reached the outcome "you want": clean opinions and no internal-control disagreements requiring reporting. Edelman described the audit scope as testing sampled invoices, contracts and payroll charges to verify that expenses charged to the Prop 39 bond programs were allowable and had a direct nexus to construction activity.
Committee members asked technical questions about the audit methodology. Edelman explained that auditors use random sampling plus targeted review of very large transactions and that exceptions in the sample would trigger additional work and reporting. He noted the sampling coverage cited in the draft: Measure T sample coverage reported in the draft at 97% and Measure S at 24%.
Committee members also caught several drafting inconsistencies in the report packet. A reviewer flagged that an interfund transfer amount shown on the statement of revenues and expenditures differed from a number in the notes and a narrative line. "It's good that it's a draft," Edelman said in response, and he confirmed staff will correct the narrative so the note matches the income statement figure (the committee recorded the correct figure as 2,552,688).
The auditor confirmed there were no disagreements with management, no reported misstatements requiring modification, and that the draft report will be finalized after any committee-requested changes. Chair Carl Landers said the committee will use the finalized audit materials to prepare its annual report for the 2024—25 fiscal year.
The committee will receive the final audit report after the district and auditor incorporate the requested clarifications and corrections. "The report is finished," Edelman said, "but since it's a draft, if there are comments that come from this group, we still have a path to make changes."
