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Baker Tilly outlines audit timeline, GASB 101 effects for KCSD fiscal‑year 2024–25 audit
Summary
Baker Tilly auditors told the Keystone Central board on Aug. 7 they plan to begin fieldwork after Labor Day, expect to complete the 06/30/2025 audit by the district’s March 31 federal/state reporting deadline, and flagged GASB 101 as an accounting change that may affect compensated‑absence reporting.
Auditors from Baker Tilly presented the district’s 2024–25 audit planning communication at the Aug. 7 work session, describing timeline, core team members, key audit concepts and expected accounting changes.
John Compton, the engagement lead, told the board that the firm performs the bulk of audit work in September and October after the district closes its books: "Keystone is ready for the audit shortly after Labor Day, and our audit starts in earnest at that point," he said. Compton noted the district’s general fund balance is approaching $100 million and that the audit will include the financial statements and federal program compliance (a single audit).
Adam Hartzell, also with Baker Tilly, explained audit concepts including materiality, the firm’s approach to testing internal controls, and the standard audit risks examiners target. He described “management override of controls” as an inherent audit risk the team will address through targeted procedures such as testing manual journal entries and inquiries of management.
The auditors said a notable accounting standard to watch for the June 30, 2025 year end is GASB 101 on compensated absences, which affects how the district reports sick time, vacation and similar liabilities. Compton described GASB 101 as likely not material in dollar effect for KCSD but said it would be disclosed in the audited financial statements and the Annual Financial Report filed with the Pennsylvania Department of Education. The auditors also said audited financial statements are due by March 31, 2026 for federal and state reporting purposes, though they expect to issue earlier if possible.
Compton and Hartzell invited board members to raise any concerns about fraud, noncompliance or other issues; none were raised during the meeting. The auditors said they plan to return in early January 2026 to present final audit results.
Speakers included John Compton and Adam Hartzell of Baker Tilly and district finance staff. No board decision was taken at the meeting; the presentation clarified audit scope and timing and identified GASB 101 as a standard the district and auditors will implement and disclose in year‑end reporting.
