District Faces Repeated Material Weaknesses in Financial Controls, Late Federal Audits

What happened

At a September 1, 2026 Financial Oversight Committee meeting, the district's outside auditor detailed multiple material weaknesses and significant deficiencies found in the FY24 audit—including inadequate segregation of duties over payroll, cash disbursements, and receipts; insufficient reconciliation of cash accounts; a roughly $8 million government-wide revenue restatement; deficit student activity fund balances; and an unauthorized $10 million interfund loan. Officials confirmed the FY23 and FY24 single audits were not filed within the required nine-month federal deadline, making the district a high-risk auditee, and many of the same weaknesses are expected to repeat in the FY25 audit. The district is bringing in a retired school business official temporarily and has posted to hire an experienced SBO, while committee members debated whether additional outside consultants are needed to fix root causes.

Why it matters to families

Repeated material weaknesses in financial controls, late federal single audits, deficit activity fund balances, and an unauthorized multi-million dollar interfund loan represent a documented material financial/operational risk affecting the district's fiduciary oversight, federal funding compliance, and public accountability.

The evidence

Auditor Sarah Bonsack (Bonsack and firm) presented FY24 findings including five material weaknesses (payroll segregation of duties, cash disbursement controls, receipt processing, cash/CD reconciliation, and fund adjustment identification), noted FY23 and FY24 single audits were filed late making the district 'high-risk,' cited a nearly $8 million government-wide revenue restatement (note 15), deficit student activity fund balances, and a $10 million interfund loan not originally authorized by board resolution.

The source