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External auditors outline 06/30/2025 audit plan, flag GASB 101 and federal compliance as priorities
Summary
Drescher Malecki presented the Rochester City School District’s external audit plan for the year ended June 30, 2025, citing key risks including cash and investments, federal program compliance, long‑term liabilities and implementation of GASB Statement No. 101. Auditors set a fieldwork schedule and asked for management input.
Matt Montalvo of Drescher Malecki presented the external audit plan for the Rochester City School District’s fiscal year ended June 30, 2025, to the district’s Audit Committee and outlined audit objectives, key risk areas and a fieldwork timeline.
“This is our audit team. Most of the members are returning members,” Montalvo said, describing staffing and work products. He told the committee the audit provides a year‑end snapshot, reviews internal controls to the extent they affect financial statements, and includes an opinion on compliance with major federal programs.
Montalvo flagged several priority risk areas: cash and investments, revenue recognition for receivables from other governments, long‑term contingent liabilities including legal liabilities, other postemployment benefits and self‑insurance, capital assets and capital projects, and the compliance audit of major federal programs under the Uniform Guidance. He also identified a recent accounting standard, GASB Statement No. 101, as an important implementation issue for compensated absences and related liabilities.
Key timeline milestones Montalvo cited include preliminary fieldwork and planning throughout the summer, primary on‑site fieldwork beginning the week of Sept. 22, 2025, required financial schedules to the city by Oct. 15–20, and a full draft ACFR targeted for Nov. 7, 2025.
In a question period, Commissioner Elliott asked for focused attention on the district’s Oracle implementation and whether auditors should examine Oracle‑related spending; Montalvo said external financial audit scope is primarily backward‑looking and that a separate engagement would be needed to evaluate implementation costs, though internal audit work is expected to review related activities.
Montalvo emphasized auditor independence and the auditors’ responsibility to report any identified fraud to the committee promptly.
A motion to accept the 2025 external audit plan was moved by Vice President Malloy and seconded by Commissioner Elliott. The committee approved the plan.
