The Los Altos School District Board of Trustees unanimously signed off on a clean annual financial audit during its meeting on Jan. 26.
The independent audit, conducted by Christy White Certified Public Accountants, covered the 2024–2025 fiscal year and resulted in an unmodified, or “clean,” opinion across all required areas, including the district’s financial statements, as well as federal and state compliance.
Auditors issued an unmodified opinion, finding the district’s financial statements fairly presented and its required controls and procedures followed. No material weaknesses or significant deficiencies in internal controls over financial reporting were identified, and no audit findings were reported.
An unmodified opinion is the highest level of assurance an auditor can provide, indicating that the district’s financial records accurately reflect its financial activity and position. This designation signals that the statements can be relied upon by state regulators, bondholders and the public when evaluating the district’s finances.
Independent auditor Michael Ash cautioned, however, that audit results should not be confused with broader assessments of financial stability.
“You can have a clean audit and you can be in terrible financial condition. You can have a terrible audit and be in great financial condition,” Ash told the board. “So, the two are not necessarily correlated.”
Ash added that in this case, the district met both standards. “Thankfully, this district is both in good shape and a very clean audit,” he said.
In addition to reviewing financial statements, auditors examined the district’s internal controls and compliance with government auditing standards, which require reporting any significant control issues as formal audit findings. The review did not identify any such findings.
A federally required “single audit” was also included for districts that spend more than $750,000 in federal funds in a fiscal year. Ash said a recent government shutdown delayed the federal portion of the audit because guidance was released late. Despite the delay, the district completed the review by the board’s January deadline.
According to Ash, the federal threshold for a single audit is expected to increase to $1 million in the 2025-2026 fiscal year, though LASD is still expected to exceed that amount. Ash noted that special education was identified as the district’s largest federal program and is likely to remain a focus of future audits.
The audit reviewed compliance with state requirements – including attendance accounting, instructional time, accountability reporting and newer funding programs – and issued a clean opinion in all areas.
Ash noted that the scope of state compliance reviews has grown in recent years as new funding programs are added. The state audit guide, which outlines required testing procedures, has roughly doubled in size, reflecting initiatives such as Proposition 28 arts and music funding and the Expanded Learning Opportunities Program. Each new funding source adds additional procedures that auditors must review to ensure compliance.
Staff credited timely cooperation and year-round collaboration with auditors – described as “thought partners” – for helping the district maintain compliance and complete a clean audit.
The board then unanimously approved the report without discussion or public comment, clearing the way for upcoming interim financial reports and budget planning later this year.
