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HSD Receives Finding on 2024-25 Financial Audit

Hockinson School District

June 2, 2026

Background: School district financial audits

  • Every year, school districts in Washington must complete a financial audit process with the Washington State Auditor’s Office. Additionally, districts may need to take part in an audit for funds received from federal programs.

  • This is part of the normal audit and accountability process used to evaluate and improve financial practices for state agencies.

  • Hockinson School District has a strong history of clean financial audits.

  • The state auditor’s office recently completed Hockinson School District’s financial report for the period beginning on September 1, 2024 through August 31, 2025.

View the Federal Single Audit for HSD from the Office of the State Auditor

  • Here is a LINK to the District's 2024-25 Audit.

Audit finding related to timing of expenditures and time & effort documentation, not misuse of funds.

  • Hockinson School District received a federal Special Education grant in January 2025. The audit found that a portion of the grant was spent in fall 2024 before the grant period began on January 1, 2025. The audit also noted that the District did not adequately document the responsibilities and hours worked by grant-funded Special Education staff.

  • Historically, grant funds have been allowed to be used for the entire Sept. - Aug. school year.

  • Last year’s grant funding could only be used between January 2025 and the end of the school year, rather than across a typical full school-year cycle.

  • The finding was mainly related to the timing of expenditures, not misuse of funds, and had no impact on student programs or services.

  • The audit found no instances of fraud or missing funds.

  • According to the state auditor’s office, this is a low-level finding because the state is confident that it will be corrected and the District had alternative documentation for employee's time-and-effort.

Next steps

  • Hockinson School District is committed to financial responsibility and transparency. District staff are already working with the state auditor’s office to ensure expenditures are documented and align with grant timelines moving forward.

  • Community members who have any questions about this audit are invited to contact Aaron Villanueva, HSD Director of Business Services at aaron.villanueva@hocksd.org