Frontier Central board accepts Bonadio audit, approves corrective-action plan

The Frontier Central School District Board of Education accepted an external audit prepared by Bonadio & Company LLP for the fiscal year ended June 30, 2025, and approved a superintendent-recommended corrective action plan.

Auditor Randy Shepherd told the board that Bonadio issued "unmodified opinions on both" the districtwide and extra-classroom financial statements, while also including a paragraph noting prior-period adjustments and a finding under government auditing standards about internal controls over financial reporting. Shepherd said the finding is a continuation of a prior-year issue related to material audit adjustments.

Shepherd described several items the audit team flagged. He told the board there is a "significant balance" in the debt service fund that has not declined over the years and recommended the district work with bond counsel to determine whether some of those funds can be released to the general fund or used for future capital projects. He also said several older capital project funds appear to be complete and may need to be closed out after reconciliation.

On capital-asset accounting, Shepherd said district records did not match the BOCES-provided capital-asset software and an internal spreadsheet. "Our recommendation is just to make sure that either you utilize that software from BOCES and make sure that's complete or utilize the software internally that you have," he said, noting the district pays for the BOCES system and should ensure the data reconcile.

Shepherd reported four matters related to extra-classroom activity funds: missing signatures on some authorization forms, uncertainty whether certain elementary-level activity accounts are permitted under guidance, a number of clubs with no activity and the costs associated with maintaining inactive clubs, and inconsistencies between subledger software for clubs and bank balances that required reconciliation.

Bonadio said it expects to issue the district and extra-classroom financial statements the following week after completing an internal second-party review. The firm said the federal single-audit remained outstanding because the federal government had not yet issued its compliance supplement; the single-audit due date cited in the presentation was March 31, 2026.

After the presentation the board voted to accept and file the external audit (agenda item 3.2). The item was moved and seconded and carried on a voice vote. The board then approved the superintendent's corrective action plan for the year ended June 30, 2025 (agenda item 3.3); that motion was moved by Mr. Voto, seconded by Mr. Fortier, and carried on a voice vote.

The auditor provided the board with a required-communications letter that outlined accounting practices and estimates the audit reviewed, including depreciation, the district s share of the state pension liability, other postemployment benefit obligations (OPEB), and compensated-absence calculations; the letter also summarized audit adjustments that reduced a preliminary $7.8 million unfavorable change in fund balance to about $3.0 million after audit corrections. Shepherd told the board that management provided representation letters and that the firm and management were in agreement on the adjustments required to issue the final reports.

No public questions or extended discussion followed the presentation. The district will work through the corrective action plan and the auditor will issue final financial statements when its internal review is complete and once federal guidance for the single-audit is available.