External auditors outline 2025 audit schedule, note new compensated-absences reporting standard

Craig Hauser, senior manager with Rocky Smith, presented the district's external audit plan for the fiscal year ending June 30, 2025, at the July 8 meeting of the East Rockaway Board of Education. Hauser described a four-stage audit approach (planning, preliminary procedures, final audit procedures and final reporting) and outlined key dates: preliminary on-site work has been completed, auditors will return for final procedures beginning Aug. 11, the audit team aims to draft financial statements by about Sept. 19 and intends to deliver final statements in time for the state deadline of Oct. 15.

Hauser said the auditor will perform a single audit of the district's major federal award programs in accordance with OMB Uniform Guidance and will audit extra-classroom activity funds on the cash basis of accounting. He also outlined areas of testing including payroll, purchasing, revenue, capital expenditures and legal expenses, and noted the team obtained and reviewed board minutes and outside audit reports as part of planning.

On new accounting guidance, Hauser summarized a standard affecting compensated absences that became effective for governments on 06/30/2025. He said the standard replaces a —probable— recognition threshold with a —more likely than not— (>50%) threshold and clarifies the rate to be used when measuring the liability. "We do not foresee this standard really changing any of the reporting," Hauser said, adding that the change primarily impacts government-wide statements rather than fund statements and that the firm will provide a brochure to district staff explaining the changes.

Hauser invited questions and said final reporting to the board and audit committee will occur in October once audit procedures are complete. The district and audit team will follow the established schedule unless subsequent events require modification.