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District audit shows four findings; LCFF error to trigger ~$153,000 return, board presses for stronger controls
Summary
Christie White and Associates reported four audit findings for FY24–25 including reporting procedures, late filing, teacher-salary threshold shortfall (~52.5% vs. required 55%), and LCFF pupil-count entry errors that produced roughly $153,000 in excess funding to be returned; trustees demanded procedural fixes and staffing changes.
Dr. Sahakian presented the district's independent audit by Christie White and Associates and summarized four findings for fiscal year 2024–25. "Finding 4...auditors reviewed a random sampling of 60 student applications. Out of the 60, 10 students were incorrectly entered as qualifying when they did not meet eligibility requirements," he said, and added the error resulted in approximately $153,000 in excess LCFF funding that the district will return.
The superintendent described the other findings as process-related: year-end closing and ASB/child-nutrition reporting controls (Finding 1), a late filing of the audit report tied to business-services transition (Finding 2), and a teacher-salary threshold shortfall (Finding 3) in which the district expended about 52.5% on classroom teacher salaries against the 55% state requirement (the board had previously sought a California Department of Education exemption). Dr. Sahakian said there is no additional structural budget impact beyond the audit correction and that the incoming chief business officer will help strengthen fiscal procedures.
Trustees pressed staff on sampling methodology and potential carryover effects of the LCFF correction. One trustee asked whether a different random sample could have produced a different result and whether the $153,000 will be carried forward or repaid; staff answered the district will return the excess funding and that budget planning uses a historically lower unduplicated-pupil percentage (68–69%). Several trustees demanded improved checks, double-checking entries and a target of zero audit findings for next year.
Why it matters: The LCFF correction directly affects prior-year allocations and requires a formal payback to the state, and the audit highlights internal-controls gaps that the board has asked staff to remediate ahead of next year's close.
What happens next: Staff will implement corrective actions, reviewers will tighten entry and review procedures, and the incoming chief business officer will play a central role in addressing the findings and preventing recurrence.
