|
Getting your Trinity Audio player ready...
|
The SRVUSD Board of Education is poised for a discussion and vote this week on the district’s annual independent financial report for the 2024-25 fiscal year, which points to an ongoing structural deficit as well as an accounting error that district staff are seeking to address.
The audit reviews a particularly dire point in the district’s financial struggle, with management and trustees having since sought to contend with the mounting structural deficit that reached a new high last year by approving $26 million in budget cuts last year, which were implemented in the current year.
Between 2024 and 2025, the district’s total annual cost for services rose from $498.5 million to $519.7 million, while its total governmental fund balance decreased from $232.5 million to $209.1 million amid a years-long structural deficit.
That bleak picture, and the looming threat of insolvency if no action is taken, have been the subject of numerous discussions and moves by the district since Superintendent CJ Cammack took the helm in 2024, including the $26 million in budget cuts this year as well as the planned sale of the district’s headquarters at 500 Old Orchard Road in Danville, with operations set to move to a new space in San Ramon that will also benefit from lease revenue.
While the overall financial state outlined in the audit report is concerning, it comes as no surprise to district officials or students, family, and staff who have been impacted by the budget cuts that went into effect this year – or to auditors, who identified no material weaknesses.
However, one “significant deficiency” was identified in the independent audit from accountants at Crowe LLP, which the district said it has already taken steps to address.
“Two invoices for construction related services paid subsequent to the fiscal year ended June 30, 2025, included services rendered prior to that date,” auditors wrote. “Although the invoice included services performed prior to fiscal year-end, these amounts were not expensed and accrued in accounts payable for the District’s Building Fund as of June 30, 2025.”
That error resulted in a $226,096 understatement in accounts payable at the end of the previous fiscal year in the district’s building fund, according to auditors. They noted that SRVUSD management was currently implementing recommended corrective measures, as did district staff themselves in the staff report prepared for the upcoming meeting.
“Improved internal control processes have been implemented and additional training to ensure that all services performed but not yet paid are appropriately accrued at fiscal year end for all funds,” wrote Evan Miller, executive director for business services.
Auditors also noted that the district had implemented recommendations from a deficiency finding in last year’s report, in which at least five school sites sampled had school accountability report cards that were inconsistent with documentation from management.
The SRVUSD board is set to meet at 6 p.m. Tuesday (Jan. 20). The agenda is available here.Â
In other business
*The board is set to hold hearings on the initial proposal for labor negotiations with the district’s CSEA units.
*The board is set to vote on extending Cammack’s employment contract for an additional four years.
I’ve spent years complaining about the budget management starting in 2020– but nothing happens. Got on call with Chief Business Officer, and they were rude about our spending questions and how dare we ask about the outlandish spending. Now 5 years later we are in crisis mode. Another bullshit organization who says they want to hear from the public, but they don’t and please don’t look under the covers – because our finances are a bunch of smoke and mirrors. I swear if I see another SRVUSD maintenance truck “on break” around town. These guys have it made.
Yesterday agenda include overspend of $600K in produce and $4M in new buses. Doesn’t sound like cutting back – haha