RS Abrams outlines audit timeline, GASB reporting changes and single-audit scope

RS Abrams auditors told the district audit committee that interim work is underway and the firm plans to present the districtwide financial statements and related audit reports to the board in October 2026. The auditors said their deliverables will include the primary financial statements, a second opinion under government auditing standards about internal controls and compliance, and a single-audit opinion addressing major federal programs.

The auditors said the single-audit will likely cover IDEA/special-education grants this year and that the district will receive a Schedule of Expenditures of Federal Awards (SEFA) summarizing federal awards expended in the fiscal year. They also reiterated that the district maintains a separate cash-basis statement for the extra classroom activity fund and that the auditors will render appropriate opinions on that presentation.

Tom, an RS Abrams presenter, summarized two GASB updates the district will need to implement. GASB 103 (financial reporting model improvements) will add a column to the supplemental schedule that shows variance between the original budget and the final budget and will require narrative explanations for material changes from original budget to final budget and from final budget to actual results. GASB 104 (asset-disclosure updates) will require separate presentation of certain asset classes (for example, capital assets versus subscription or intangible lease assets); auditors indicated the district’s statements already separate those categories and expected only minor formatting or footnote changes.

The auditors described two governance deliverables that will accompany the audited financial statements: a board governance letter, which will disclose required communications such as major accounting estimates, corrected and uncorrected misstatements, and any disagreements with management, and a management letter that summarizes control deficiencies and recommended improvements. Auditors noted historically there had been no disagreements with management and encouraged continued transparency in supporting documentation for transfers and budget changes.

The auditors also provided a short list of internal-control themes drawn from Office of the State Comptroller reports and their annual summary: procurement and piggybacking practices, documentation for professional services, pre-approval and documentation of overtime, and lead-in-water testing as a recent OSC emphasis area. They recommended the district continue strong documentation for budget transfers and to prepare clear variance explanations for the new GASB-required schedule.

The board and staff agreed to schedule the audit committee meeting for October 6 and the board presentation for October 8 and asked auditors to confirm whether those dates would require adjustment based on the auditors’ year-end work.

The audit committee asked auditors for sample regulations and templates to implement internal controls and stated the committee would review a revised policy and regulations before forwarding them to the policy committee or the full board.

The auditors’ discussion concluded with an offer to provide sample regulations and to return with the formal October presentations and letters.