The Niskayuna Central School District audit committee on June 13 heard a preliminary audit plan from Bonadio Group and a draft internal audit risk assessment noting minor exceptions but no material weaknesses.

Kylene Fedcic, principal on the district's audit engagements for Bonadio Group, told the committee the firm will perform a financial statement audit in accordance with government auditing standards and will report on internal controls, compliance and the district's extra classroom activity funds. "We will be expressing an opinion about whether the financial statements are presented fairly in all material respects in accordance with GAAP," Fedcic said, and outlined the firm's responsibilities to report on internal controls, compliance and potential fraud.

Fedcic said the audit schedule includes preliminary field work June 24–25, final field work the week of Aug. 25 and presentation of the financial statements to the audit committee and board in late September or early October, in time to meet the New York State reporting deadline of Oct. 15. She also noted Bonadio will perform a single audit if federal expenditures exceed the $750,000 threshold that requires uniform guidance testing.

In a separate presentation, Michael, the district's internal auditor, summarized an annual risk assessment update and described results of control testing across core functions. "We had minor exceptions that were identified during the review. However, none of the exceptions taken individually or in aggregate appear to the level of a material weakness or actually a significant deficiency," Michael said.

The internal audit tested samples of 50 transactions in several areas. Key findings and observations included:

- Cash receipts and athletics: Two exceptions in the athletics ticketing/testing sample. One was missing starting/ending ticket numbers and dollar amounts, preventing a full audit trail; a second transaction appeared to have a check held longer than the controller's recommended three to five business days before deposit. Michael noted athletics cash is higher risk because events often rely on volunteers and on-site cash handling.

- Payables/disbursements: One vendor invoice included a $4,000 subcontractor charge for a bus repair with insufficient underlying documentation. Overall testing showed strong claims-auditor oversight, and the internal audit praised the claims auditor's thoroughness.

- Bank reconciliations: The audit identified 44 checks older than six months, totaling $14,282. The internal auditor and committee characterized follow-up procedures as active; the amount was not presented as material for a district of this size but noted for continued attention.

- Food service and free lunch/CEP: At the time of the internal audit fieldwork the district had approximately $28,000 in unpaid student meal charges. Committee members discussed the district's move to the Community Eligibility Provision (CEP)/free lunch and how that program is likely to change cash collections and program accounting. Michael and board members said CEP may reduce collections risk but will shift how the food service fund operates; some districts participating in CEP see higher food-service fund balances and use excess funds for equipment or program investments.

- Extra-classroom activity funds: The internal audit found four clubs with no activity during the year and four clubs carrying large balances. The auditor noted SED guidance that funds raised should benefit students and recommended evaluating balances and closing inactive clubs per board policy.

- Fixed assets and transportation inventory: The district has not performed a comprehensive physical asset inventory recently; the business office and IT track many items but the auditor recommended periodic physical inventories (the district noted a five-year physical inventory policy update). Transportation spare parts are tracked in an Excel file by a single individual; the audit recommended a more robust inventory system and cross-training a second staff member.

- Information technology and disaster recovery: Michael reported the disaster plan is up to date and password protections are being strengthened; no significant IT control failures were reported.

Recommendations and follow-up: The internal audit report included recommendations to strengthen documentation for select vendor invoices, improve ticketing controls at events, continue follow-up on stale checks, perform periodic physical inventories for fixed assets, cross-train transportation inventory staff and monitor extra-classroom fund balances. Committee members said many items reflect operational improvements already under way and asked staff to track corrective actions.

Committee coordination and next steps: The audit committee and business office agreed to coordinate schedules so the external audit's draft financial statements can be presented to the full board in advance of the NYS filing deadline. Bonadio listed its client service team for the engagement as Alan (partner), Kylene Fedcic (principal), Tim Doyle (advisory partner) and Jennifer Wood (quality assurance partner).

Votes at a glance: The committee approved the minutes of the April 11, 2025 audit committee meeting and then voted to adjourn. The transcript records the motions and voice approvals but does not record a roll-call vote or full member names for the motions.

The audit committee will use the internal audit's observations to inform the external audit and ongoing internal-control improvements; no corrective-action plans rising to the level of material weaknesses were required based on the internal auditor's findings.