By Peter Day
Senior Reporter
LUCERNE VALLEY — The Lucerne Valley Unified School District's annual financial audit showed the district handles its financial affairs appropriately and according to state guidelines, said Jeanette Garcia of the independent audit firm of Jeanette L. Garcia & Associates.
"I'm pleased to report that we got clean opinions across the board," Garcia said during a presentation at the Feb. 11 meeting of the LVUSD's governing board. "You're financial statements are fairly presented and you're in compliance in all material respects."
The audit was for the year ending June 30, 2015.
Garcia, a certified public accountant, explained that annual audits are required by both state and federal compliance codes and go beyond just finances.
"Not only are we looking at your financial statements to make sure they are thoroughly presented, we're also testing to making sure you're in compliance with general laws and regulations and state laws and regulations," she said. "Over all I'd say it's a very good audit."
Although Garcia gives a thumbs up, there were a few "relatively minor" exceptions in the state compliance area that deserved noting on the report. "Years ago I think we were in double digits with our findings and now we've got them down to three."
This year, however, the state added a new requirement that declares local governments must report their proportionate share of net pension liabilities. The LVUSD's retirement fund amount of $5.4 million was recorded as a liability, as a result. That amount made an overall net negative, "but that's what happened at nearly all my districts."
After Garcia's presentation, school board president Jim Harvey asked: "If several hundred thousand were missing would this audit catch something like that?"
The comment was an allusion to a published allegation attributed to recently recall board trustee Dawn Turnbull.
"I would hope so," Garcia responded. "We look at every transaction over that dollar amount. For a district this size, anything in that amount would certainly be material."
Superintendent Suzette Davis commended Garcia for her report and added, "Be tough on us."