001Good evening everyone. Um, and welcome to uh the monthly work session of the East Rockway Board of Education. I'd like to call this meeting to order at 6:00 p.m. on October 15, 2025. At this time, can we please stand for the pledge of allegiance? I pledge algiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Okay. Uh Mr. Damaso present. I just want to mention one thing for new business that our uh district-wide safety uh is up and running on the website. We just had our safety meeting yesterday. >> Yesterday. yesterday and there are a few updates. If you have any questions about that, please let me know. It'll be on the website for 30
002days and then be up for adoption. So that's our district-wide safety uh policy. >> That's it for business. >> All right. Thank you. Uh so next is the um presentation audit presentation. >> Right. You need to stand. Sit. >> Where's the best spot? Claire, >> maybe move closer to the table. Closer to the microphone. >> Huh? Want me to stand? It's easier. >> Yeah, that's great. >> Okay, perfect. I'll be quick. So, thank you. My name is Dave Tellier. I'm an audit partner with Naki Smith. We run the audit of the district's financial statements for the year of June 30, 2025. So, uh I pres I provided you with the presentation. I'm going to kind of flip through it quick just kind of give you the highlights. Stop me if you want to talk about
003anything specific. So, before we get into the numbers, uh first and foremost, just talk a little bit about the district. Uh another great audit cycle. Uh the business office did a tremendous job. Mike, Ellen, everybody else that we kind of worked with. Uh phenomenal to work with. We really appreciate all the time, effort, energy that gets put into this. Um I probably say this a lot. I say it a lot here and I've probably been caught on mic saying it a lot, but just to understand for for the committee members, for the board members is for me to take a minute to kind of uh read my praise on them. Remember that this entity is about a $45 million entity business entity that works with a handful of people in the business office. It's not
004a for-profit company that's got, you know, accounting divisions and controllers and CEOs and all this other stuff to manage it. You got a few uh people that are running the running the show here. We came in within 45 uh days of year end and the district was closed out. We had a couple of adjustments which were year-end kind of closing adjustments that we worked with the district on. Outside of that, everything was found to be in order. Uh no material weaknesses, no significant deficiencies. We had no findings, recommend or suggestions. Everything is operating efficiently and effectively. So um for the two quick minutes that I had, I wanted to make sure that you understood that uh you know the business office is operating very very well. >> That's good to hear. Thanks Ellen. Thank you
005Mike. >> Thank you. >> So before uh and then the last thing before we get to the numbers is there was a new accounting standard that was enacted this year. It was called Gazsby 101 related to compensated absences. Um it just the um the new standard kind of talked about different ways in which uh compensated absences should be recorded on the books and records here at the district. Again, this is on the full acrual side of things. Doesn't affect your day-to-day operations. Obviously, people uh retired, they get paid in accordance with their contracts, things of that nature. But on the full acral side, there was uh a difference of how we should be accounting it uh which resulted in a prior period adjustment about $1.1 million on the overall uh aspect of things. But again,
006that's uh on the full pool side, not the day operations of everything. So, so now kind of walking you through the through the financial statements. The first few pages as well as the last few pages is our auditor's report. Everything was a clean or unmodified opinion which means that the numbers are presented in accordance with US generally accepted accounting principles and in accordance and our audit was conducted in accordance with US general accepted auditing standards. We move into the first section which is called the management discussion and analysis section. This goes uh through pages four through 14 of the the main financial statements that you have. This just provides a general overview and analysis of the financial statements. Uh has comparative data. We look at variance and analytics and things of that nature. It's nice
007because it gives management the opportunity to really uh put some words into what actually happened as opposed to just having numbers on a on a piece of paper. It actually talks about why did things uh increase or decrease in a certain in a certain regard or what was new to the district this year? What's coming due uh or coming up that's going to affect the district whether it's financial related, enrollment related, things of that nature. So, it's a good read for uh for any district, but uh specifically here, especially if you're don't have time to go through the 65 pages of all the other stuff, it should give you a good snapshot of what's kind of uh contained there. The next uh section is what's called the district-wide financial statements. These are on the full
008acrual statements. Um so, some of the key things here that I wanted to point out, the district has capital assets net of depreciation totaling about $55.6 million with a net increase of the year a little over $622,000. That means the additions and the capital projects uh were greater than the depreciation charges for the year. So there was an increase on that side. You have uh outstanding bonds payable totaling $15.6 million with you had a current year issuance of about $4 million and you had principal payments or payowns about 645,000 in accordance with the debt instruments. Your total other post-employment benefit liability sits at $38 million with a decrease for the year of about $5.5 million. This was primarily related to some changes on the actuarial side, primarily the discount rate went from just under 4%
009to a little over 5%. So that changed some of the parameters there. Big thing here is again that's this large number that's out there and it's great to know and it's usually forformational purposes, but what did how did it affect the district? So on a current year basis, we had $1.2 million >> payments that were that were made on behalf of our retirees of the district. So that's the cash that actually um you know left uh due to that liability. So um just going through the next section is called the governmental fund financial statements. These are the funds that are managed on a day-to-day basis by the business office. Your first fund is your general fund. That's your main operating fund. This is what the voters have approved and well voted and approved the year
010budget for. So at the end of the year, you had total assets of a little over $22 million with total liabilities sitting about 3.7 million. uh you actually had uh what they call deferred inflow is really deferred revenue relating to uh the last property tax payment that was made by Nassau County was received after the 60-day window. So we couldn't recognize it as revenue. So that'll be recognized next year. So that was about 758,000 and that leaves you fund balance of about $17.7 million. Of the classifications within uh within the fund balance for the general fund, you have 1.9 million in unassigned or unrestricted monies. uh district is allowed to carry over 4% of next year's budget as unassigned or unrestricted. You're obviously within that. You have a million dollars of assigned funds. This is
011monies that have been appropriated for to balance next year's budget as well as some incumbrances or items that um you know related to this fiscal year that will be received and paid for in the next fiscal year. And then you have $14.9 million of restricted funds. Uh and of the restricted funds, you have five different reserves. The largest being the capital reserve, the retirement contribution reserve and then a new debt service reserve that was created this year. Um again everything was found to be well within uh applicable limits and allocations uh within that the year. Uh on the general fund side you had total revenues a little over $45 million, total expenses of a little over $44 million to leave you with a net change of about two and a half. What we like is
012when we look at this, the budget, your revenues were overbudget uh by about 1.4 million or about a little over 3% and your expenditures were under budget by about 986,000 or a little a little over 2%. So really uh managing the budget very very well on a day-to-day basis on a year-over-year uh allocation. The next funds that are in there, and I won't go into too much detail, obviously is your capital projects fund that manages all the capital projects that's administered here throughout the district and overseen. Uh these are projects that are obviously not just well some can just be within the year but some are multi-year projects so they span uh over time. The current year I I mentioned that we did have a current year bond issuance of $4 million to uh start
013to continue to fund those projects that the district has going. Um the next fund is the special aid fund. This accounts for certain reimburseable state and federal grants that the district receives. So there is no fund balance here. everything that's expensed or spent out is received or vouchered. The only thing here is obviously timing because we have to spend the money first and then voucher for it and then receive it. So there's always a time lapse gap there. Um but outside of that, nothing was uh really uh noted to uh to to bring to your attention. The other fund is the school lunch fund. Obviously it it manages the operations of the food service program here at the district. Um you've seen over the last couple of years we've had a reduction in the fund
014balance side um with uh you know with not only equipment purchases and and increased cost and things of that nature but um again you're now within the allowable limit I think of the carryover as far as what New York State allows you to carry on the school school lunch side. So um so again another great management within uh within the district. The last fund is what's called the miscellaneous special revenue fund. a few years ago. This fund was created to account for the extra classroom activity funds and scholarships uh here at the district. So again, this fund is uh you don't really see many liabilities here. It's kind of like a cash in cash out because of uh what it what it's uh attributable to. And obviously the activities here kind of eb and flow
015based on participation and and how involved the students get on a year-to-year basis. But again, something to account for. you have a quarter of a million dollars flowing in and out you know based on activities of the students here at the at the school. So that's uh you know I think that's a very positive thing. After the financial statements the notes of the financial statements all uh pretty consistent with the previous year there are three things that I've highlighted for you here just talking uh the only changes that were made related to the new Gazsby standard that I mentioned. So we had to add in some additional language. Um so you'll you'll find those those specific pages. Nothing really uh outside of that to highlight. Finishing up the financial aids are the supplementary schedules. Some
016are required by the Governmental Accounting Standards Board. Others are required by the New York State Education Department. Those schedules are consistent with the prior year as far as content uh format, things of that nature. So nothing new to uh to point out there. That's the main financial statements. We also performed the audit classroom activity funds. That was a clean modified opinion. Those on the cash basis of accounting. So again, cash in cash out. we have our balances left over to roll into the next year for the various clubs. We audited that everything was found to be in conformity as well. And then the last thing is the federal single audit uh which we do a special audit relating to the federal funds that I talked about kind of that's contained within the special aid fund.
017Um it's not only a financial audit but it's also a compliance audit. We've done all the work. We have the report drafted ready to go. the we cannot issue it yet only because the compliance supplement that is put out by the federal government has not is is still in draft form. They have not finalized it yet. So we're not allowed to finalize our single audit reports until that instrument is finalized so that we could verify that all the various compliance um aspects of these particular grants have been audited appropriately by us. We don't anticipate there to be any changes in in anything, but if there is, then we'll obviously have to stop back at the district to to finish that work up, but we anticipate that uh being good to go uh once that gets
018finalized. And uh and that's pretty much it. I kind of already mentioned that, you know, no current year recommendations or suggestions. So, >> was quick. >> I hope. >> Yeah. Yeah. I I I could do it. I got five minutes. I'm used to going quick quick. um >> and thorough. Great job. >> Yeah, I hit all the hot topics. Um no, it's a lot of information. So, again, the last page within there is my contact information. Steven's contact information, who isn't here, but he was our our uh manager that oversaw the audit engagement with our staff. Anything comes up today, tonight, tomorrow, next month, six months from now, always please know that you can reach out. I'd be happy to have a conversation, explain anything to you, walk you through stuff. Um, >> Thank you
019so much. Thanks a lot. No problem. Appreciate it. >> Thank you very much. >> Uh, next. Um, all right. Items for discussion. Review uh minutes of special board meeting on 9925. Are there any questions about the meeting? No. >> No. >> All right. About any questions of um the regular board meeting on 9:16? No questions. Okay. Uh how about questions on the upcoming board meeting on 10:21? >> No questions. >> All right. >> Um at this point, I have a motion to adjourn the work session. >> Motion by Mrs. Doyle. Second. >> Second by Mrs. Salo. All in favor? >> Opposed? Abstain. Motion approved at 6:13 p.m. All right. Good night, everyone. >> Good night. Thank you. >> Good night. All right. You're not running