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Board accepts 2024–25 audit and certifies 2025–26 second interim budget; auditors flag liability reporting change
Summary
Auditors delivered an unmodified opinion on district financial statements (GASB/GASB 101 implementation noted) and the board accepted the annual and Prop AA audits. The board also certified the 2025–26 second interim budget with a positive certification and staff said the district is in stable financial condition as it transitions to community‑funded status.
The San Diego Union High School District Board of Trustees accepted the district’s 2024–25 annual financial audit and the Proposition AA building-fund audit on March 11, and certified the 2025–26 second interim budget with a positive certification.
Auditor Kevin Sproul of Wilkinson Hadley King LLP gave the board an overview of the annual audit, including a new accounting-principles change (GASB/GASB 101) that required reporting accrued sick‑leave as a liability on the balance sheet. Sproul said the district received an unmodified opinion on its financial statements; the auditor also reported one repeat finding tied to accrued vacation liability, an issue the district continues to address.
The district’s Prop AA bond audit returned an unmodified opinion and no findings. For the general fund, business staff presented small net adjustments since first interim — a revenue increase of roughly $234,000 and an expenditure reduction just under $800,000 — and stressed that property-tax (community‑fund) growth remains the dominant revenue factor going forward.
‘‘We are trending in the right direction,’’ the associate superintendent of business services told trustees, noting the district is now community‑funded and estimating year‑end unrestricted reserves of roughly $30 million before planned uses; staff estimated about $18 million in unrestricted reserves at the conclusion of the current year (about 8% of unrestricted fund balance) toward a longer‑term target of approximately 15%.
Trustees accepted both audits and certified the second interim budget unanimously. The board also asked staff to continue building reserves and return with updated property-tax estimates when county assessor information becomes available.
What’s next: Staff will incorporate the audits into financial statements, continue work to remediate the repeat finding on accrued liabilities, and provide updated property-tax projections ahead of the June budget adoption.
Provenance: Audit presentation SEG 2660–2960; budget presentation and certification SEG 3162–3342.
