On top of a state audit, Sweetwater schools face $11 million negative fund balance after previously projecting a surplus

​Sweetwater Union High School District faces an $11 million negative fund balance despite officials claiming they would end the year with a surplus. The San Diego County Office of Education has commissioned an audit after a state fiscal analysis found the district misrepresented its finances for years, frequently under-reporting its spending and over-estimating its revenue. The analysis found widespread breach of internal controls, which raises red flags for the potential of fraud. The report also highlighted the district’s lack of a comprehensive strategy to repay a $68 million debt due in June. Should the school district officials fail to improve the financial situation, the district may require a state bailout and be taken over by the county’s education office, taking years to regain local control.

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