Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit topic
No spam. Unsubscribe anytime.
Audit finds Beacon City School Districtunassigned fund balance above New York limit; auditor expects clean opinions
Summary
EFPR audit director told the Board the district's basic financial statements and federal single audit should receive unmodified opinions but disclosed one compliance finding: the district's unassigned fund balance is 5.28%, above the 4% limit in New York law (finding noted in the report).
Brian Sama, director on the audit engagement with EFPR, told the Beacon City School District Board of Education on Oct. 6 that auditors expect to issue "unmodified opinions" on the district's basic financial statements and on the federal single audit but disclosed one required finding under government audit standards.
The finding, recorded in the audit as finding 2025-0001 in the presentation, cites New York State's limit on unassigned fund balance under the state real property tax rules; the district's unassigned fund balance was reported at 5.28%, above the 4% threshold. "You are at 5.28%," Sama told the board after a board member asked for the exact percentage.
The audit presentation said the auditors found no material weaknesses or significant deficiencies in internal control over financial reporting and no compliance findings for the federal special education cluster the team tested. "We do expect to issue unmodified opinions on your basic financial statements, your federal grant compliance audit ... and then your extra classroom activity funds," Sama said during his remarks. Management provided records promptly, the auditor said, and auditors plan to finalize the financial statements for issuance by the district's October 15 deadline if the board approves the presentation.
Why this matters: New York State guidance on unassigned fund balance is intended to limit reserves in relation to the budget and may require districts exceeding the limit to explain or adjust fund-balance plans. A board member noted that the New York State School Boards Association has advocated raising the 4% guideline; board discussion at the meeting reflected that the district's 5.28% figure is not unusually high compared with many other districts.
The board's audit and finance committee reviewed the audit in more detail prior to the meeting, and the auditor thanked district management for cooperation in preparing the materials. The board may be asked to accept the final audited financial statements at a future public meeting once the auditor completes the final issuance paperwork.
Votes at this meeting related to routine consent business are recorded separately in the board's actions summary.
