Finance staff told the board the district is finalizing its independent audit but auditors are awaiting the U.S. Office of Management and Budget's final compliance supplement, which has delayed completion of federal-program testing and the district's ability to file audit reports with the county and state by the usual Dec. 15 deadline.

"The federal office of management and budget, they have not released their final 2025 compliance supplement," a finance staffer said, and staff noted the state controller's office has recommended districts request 90-day extensions where necessary. The delay affects auditing of federal programs such as special education, Title I and federal meal reimbursements.

On grants, staff described a Department of Homeland Security/FEMA grant application that, if awarded, would not require local matching funds but would require expenditure reporting; staff emphasized there is no ongoing oversight on campus apart from standard expenditure reports. Separately, staff said the district has been awarded a grant that would increase budgeted revenue by roughly $2,100,000 but cautioned those dollars have not yet been received.

Finance staff also said the district has adjusted revenue assumptions to reflect an enrollment increase of roughly 50 students (projecting revenue assumptions to 3,175 or an enrollment assumption adjustment), and that the district is making operating-cost reductions elsewhere to account for inflationary pressures and rising pension costs.

Board discussion included questions about the FEMA grant's commitments and whether the district would have to provide matching funds (staff said no match required).