Auditors report a material weakness in the district's accounting records

What happened

The outside auditor told the board on Oct. 13, 2026 that the audit will get clean opinions but notes a material weakness in accounting records. About $53 million of adjusting entries were needed; two entries were 75% of that.

Why it matters to families

A material weakness means the district's own checks did not catch errors before the auditor did. It is not fraud. The two big fixes were how lottery revenue was classified and how a bond anticipation note repayment was recorded.

The evidence

The auditor said, "there was a material weakness in internal controls regarding accounting records and significant audit adjusting journal entries... about $53 million." The prior-year audit also had a records finding and showed unassigned fund balance at 3.96%, under the 4% limit.

The source