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Auditors outline 2026 audit plan and GASB 103 changes to East Rockaway school board
Summary
At the East Rockaway Board of Education work session, Dave Tellier of Rock and Smith reviewed the firm’s audit plan for the year ending June 30, 2026, explained how GASB Statement No. 103 will change MD&A and budget variance reporting, and set a mid‑August fieldwork schedule and an Oct. 13 return to present results.
Dave Tellier, partner at accounting firm Rock and Smith, told the East Rockaway Board of Education at its monthly work session that his team will audit the district’s financial statements for the year ending June 30, 2026, and has begun preliminary procedures.
Tellier said the firm is planning to perform transaction testing, capital expenditure reviews, journal‑entry checks and reconciliations and expects to be on site for fieldwork in mid‑August. He told the board auditors will return on Oct. 13 to present the completed audit and any recommendations.
The presentation focused in part on GASB Statement No. 103, an accounting standard that Tellier said requires more explanatory management’s discussion and analysis (MD&A) and additional variance analysis in the budget‑vs.‑actual schedules. "They're really focusing on not using generic answers for why things increase and decrease," he said, adding that auditors and district management will work together to provide clearer, fund‑level context.
Tellier also noted that a single‑audit requirement tied to the federal major‑awards threshold may apply depending on the district’s federal receipts; he said at present the firm does not expect a single audit but will monitor receipts and notify the board if the threshold is crossed.
A board member asked how auditors would define which variances receive narrative explanation. Tellier said the team balances materiality and usefulness to readers when selecting items for commentary and that the district and auditors will jointly decide which variances to highlight. "You can't highlight everything," the member said; Tellier described analytical procedures the auditors use to identify meaningful swings.
The presentation included examples of routine confirmations (such as bank cash confirmations) and more complex verification work — for example, calculations behind compensated‑absence liabilities and retirement plan valuations — which can affect reported liabilities though they may not change cash flows.
Tellier said the firm will provide suggested internal‑control improvements and any significant deficiencies or material weaknesses at the board’s next public review. "I'll be seeing you on October 13th," he said, closing the presentation and wishing members a good summer.
