001Okay, welcome back. Um, I need a motion to enter into our audit committee meeting. Kelly, second, Desmond. All in favor? Okay, thank you. All right, we are going to start our audit committee with our presentation from the Rockian myself and Christopher Anga the partner from Naki Smith. He was not able to make the meeting tonight. However, we prepared a presentation we'd like to take you through highlighting the results of the year as well as the results of the audit. Beginning with our scope of services, we performed an audit of the financial statements for the year end June 30, 2025 in accordance with the county standards. We also performed an a single audit of the district's major federal programs for the year ended June 30, 2025. That's in accordance with uh uniform guidance. We performed an
002audit of the district's extra classroom activity funds. Keep in mind these are on the cash basis of accounting. Also in accordance with standards. When necessary, we'll issue a management letter presenting any findings or recommendations on improving accounting procedures and internal controls. As far as audit readiness and responsiveness, there was a satisfactory closing of the books and records. Our field work began the week of August 18th. We did have excellent audit cooperation throughout fieldwork. Did want to commend both Elenny as well as Robert and Rhonda while she was here in that transition as well as the rest of the business office. They did provide everything in a timely basis and when when it was needed for the audit which made the audit run smoothly. There were no audit adjustments to the financial statements as originally presented.
003All of our planned audit procedures were successfully. One of the new changes this year is Gazsby 101 which is compensated absences. There was previously a Gazsby for compensated absences. This was just more or less a fine tuning of one of the biggest changes here and which did affect the district by the amount as you see below is about 193,000 as far as a prior period audit audit adjustment. This was related to the the version of use as far as time. So previously the district had acred benefits more or less vacation and sick time that was payable upon termination or resignation. Now Gatsby 101 includes a form of use. So the groups that were not eligible for payments now have but are able to acrue time. There's a liability for that portion of time for them
004to use it in the subsequent years. So that amount of use as we call it is about 193,000 which adjust the financial interest. I just wanted to confirm that was a result of this new um rule that was implemented. Correct. Okay. >> Correct. Now that use is allowed more or less the liability slightly went up by now. >> Thank you. >> Now I'll take you through the financial statement highlights beginning with our opinions. We had unmodified opinions on the financial statements as well as on the audit performed in accordance with government auditing standards. That's pages 1 through 3 and 63 and 64. The next section is our management's discussion and analysis. This is really a brief overview of what occurred throughout the year as well as um shows an analysis of the financials as well
005as the only area that shows comparative data. So if there was any section to review in the report, this would be a brief summary and where you want to look. This is followed up by our full approval statements or the districtwide financial statements. This is the financial statements that have all of the long-term items on them. So your capital assets, your bonds, things of things of that nature. Couple of the ratios we like to take a look at. Uh looking at your current assets and current liabilities as of year end. Current assets at about 23.8 million. Your current liabilities sitting at about 18 million. Showing it comparatively year-over-year. Your working capital ratio is your current assets less your current liabilities. That's at about 5.6 million, which is a healthy ratio. Your current ratio is about
0061.31. So what that means is your current assets divided by your current liabilities. So for every dollar uh of liabilities that you have, you have a $1.31 in assets to cover those on the current basis. So within the year, some of the long-term items, your capital assets net of depreciation total about 70.4 million as of year end. This is after a net increase of about 4.2 million. Your bonds payable were about 29.3 million. This reflects your current year your current year bond issuance of 14.9 million as well as principal payments of 2.6 million. Energy performance contract debt payable as of year end was 5.2 million. This is after current year payments of 1 million. Your total OPED liability sits at about 140.7 million. This is after a decrease of 20.8 million in the current year
007based on the current valuation that was performed. Uh this is also after current year payments of 6.1 million. Your net pension liability, your employee retirement system sits as a liability as of 4.9 million as of year end. The teachers retirement system this year is sits at a net pension asset after the valuation was performed. So what that means is the teacher retirement system is basically overfunded now is funded more so than the liability. So the share of assets where the district is 6.2 So that uh that was an increase of 4.2 million and that's a that's basically the construction that occurred throughout the year. So if you take a look as far as capital outlays concerned, we're going to get through the capital projects and we'll show you all the outlay that occurred. Uh now
008we'll take you through the government fund financial statements beginning with the general fund. As of year end there were total assets of about 35.6 million. Total liabilities and deferred inflows were about 11.8 million. This left you with fund balance of about 23.8 million. Of that amount 4 million is unassigned. And this is within the allowable New York State 4% maximum or statutory limit. 4.3 million is assigned. This consists of 2.9 million in the budget that's appropriated for next year as well as 1.4 million in encumbances. 231,000 is non-spendable and 15.3 million is in your restricted reserves. If you take a look at this table below, that is the breakdown of the 15.3 million almost. And you see where the reserves sit as well as where they compare with the prior year as well as seeing
009most of them have either gone down or up based on allocations over the 4% or used throughout the year. Next is this general fund current year activity. Revenues uh as you see are are slightly up just under 2%. Total expenses are rather consistent year-over-year, less than 1% change, leaving you with a change in fund balance for the year of negative 3 million. Overall, if you take a look at page your budget to actual schedule in the back of the financial statements, you'll notice the total revenues were under budget by 615,000. This is on page 56. and your uh your total expenditures were under budget by 4.1 million. And the breakdown on page 56 is the breakdown of each of those numbers and the different categories changes. As far as the capital projects fund, this is
010the next one of the next funds. Uh this capital projects fund is self-explanatory. A lot of the construction uh the bond monies that that did um you know that did were issued this year. It was a 15 million almost a $15 million bond as you see there under other financing sources. Uh this was to use mostly to pay off the bond anticipation note in the prior year as you see the total liabilities last year going from 16 million down to 600,000. Uh this also shows the capital outlay as as was questioned before as far as how much was spent both this year and last year. about $7 million in spendage. Next is your special aid fund. This is a fund utilized to more or less track the activity for grants. So your state and federal
011grants received as well as how they are spent. These grants are reimburseable. Uh so basically a budget is is is done by the district and then as as money is spent towards each grant is then claimed and reported as revenue. As you see, there is no change in fund balance, no net income, and there is no fund balance as a year end because revenues will match expenses. The school lunch fund is is your next fund. Uh this is self-explanatory. Houses your food services activities as far as your revenues and your expenses in this fund. One of the things we we we did note in the report and we'll note here, your school lunch fund is in excess fund balance. Uh based upon federal requirements, you are required remain under three months. They have expanded it
012to six months as far as having a formal report filed with the state. So, you're not as far as that. Uh but it is over three months. So, as you see, there was a loss for the year and that will be continued to be spent down. Next fund is your other miscellaneous special revenue fund. This was uh created a few years ago in regards to Gatsby 84. It includes your extra classroom activity funds as well as your scholarships, field trips, and other student activities. If you take a look there, you see the different activities. Fund balance remains rather consistent year over year. Page 22, you have your fiduciary fund statements. This is a fund utilized to show the activity where the district acts as an agent or a trustee for the benefit of others. In
013this case, it is the pass through of property taxes to the Sville Historical Society as well as the library. So if you look at that statement, more or less the money in gets remitted to them. This is followed by the notes to the financial statements 23 pages 23 through 55 which are in accordance with New York State education guidelines. For the most part, they were consistent year-over-year with with these three exceptions. We have three changes that are related to Gazsby 101 with the compensated absence implementation. The change in accounting principle was note three on page 37. We had updates to language in note one which talks about accounting policies related to Gazby 101. And then there's a prior period adjustment note in the back of the financials on note 17 which is page 55. This
014is followed by supplementary schedules. These are also consistent with the prior year more or less. There are budget to actual schedules. There's other post-employment benefits schedule which shows the trend over the last 10 years. There's also an employee retirement system and teacher retirement system. There are two schedules that also show the trends over the last 10 years. There's a capital project schedule as I pointed to before as well as a net investment capital assets for the federal single audit. We were happy to note there was an unmodified opinion on the auditor's report, which is a clean opinion. We didn't have any instances of non-compliance or questioned costs. There were two programs that were tested that fell under the special education cluster. We didn't have any current year or prior year compliance findings noted and there
015was no uh yeah, no findings. Uh one of the things we wanted to note was the 2025 compliance supplement. All of the federal grants fall under the compliance supplement. they have to more or less be administered under that. Uh it is not finalized to this point. So we will be unable to issue the single audit. What we have done is we've removed it in previous years. It was in the back of the report as far as the last few pages. We've removed it to make it a separate report so we can issue everything else on time. Uh once the federal government confirms and agrees that the compliance supplement has been finalized, we can then issue that report. So we will work with the district to do that. We have until March of next year to
016do that. So, we have some time, but uh that will be removed from the reporting. As far as the extra classroom activity funds, financial statements, that is the smaller package that you have next to you. That's a separate set of financials. We did have an unmodified opinion in that report in that auditor's report as well. These are presented under the cash basis of accounting. As far as findings and recommendations, we were happy to note there were no material weaknesses or significant deficiencies in internal control. We also did not have any current year or prior year recommendations. Some of our required auditor communications, we performed the audit under our responsibilities, general accepted auditing standards as well as government auditing standards. All significant accounting policies, management judgments, and accounting estimates were adequately disclosed. We didn't have any
017disagreements with management or difficulties encountered performing the audit. All of the current accounting and auditing developments were fully considered. As we indicated, Gazby 101 was effective this year. There were no contrary judgments about the quality of the district's accounting principles. We did not have any audit adjustments, so none were passed and our firm was independent with regards to performing the audit as is required. Following slide is our contact information. We make ourselves available throughout the year to the district. So, we want the water community to have that as well in case any will turn it back to the board for any questions. >> Thank you, Robert. One thing I will note is that in past years, we've gotten the report and then voted on the same night, but one of the things you expressed to
018me was you wanted time to digest. So, you're getting the report tonight and you'll vote to to resolution next week. And that makes sense with our new format. This is a discussion forum and then next week we vote >> and if there are any questions that arise obviously as a result of reviewing further, please feel free to reach out to us or contact. I also wanted to thank Elenny. So, she's really the one I mean, you're thanking me, but she's really the one that did all the hard work for me. >> Oh, yes. Well, big thank you to her. >> Yes. Um, I do appreciate having the time to kind of digest this is a not a financial brain here like I'll need to read it back over and I hope everyone else does and
019we'll ask questions if we need. Um, we are going to approve the minutes of this meeting tonight. Um, and then we will vote on the actual audit review next week. So, um, as as Mark said. Okay. Okay. Anybody else? Any other comments or questions? It will be a separate report. So it'll be >> Yeah, we'll vote on it. >> Yeah. When that's >> Mike, put your mic on, please. >> I just have one more question about the um the sick days. Can you just explain that to me in greater detail because I know you went into it a little bit. Yeah. But I'm just confused about the Gatsby 101. >> Sure. So the easiest thing to do I will point you to the notes. I will also explain one of the changes we do have
020added notes which are provide a lot of clarity. Page 30. So really what Gazby 101 does is it includes what if you kind of read the note the use of time. So there are several groups that can acrue time. So they can acrew sick days year over year four years but they won't get paid out when they get. So as a result this basically affects them in that they can take their time they can take good amount of time in subsequent years. So more or less what this is doing is creating a liability for that use of time. >> Okay. >> And this may not be a question for you. Maybe a question for you. How does that affect us budget wise? >> It really doesn't. It's it's an accounting entry that goes in the
021back end of the financial statements. >> Okay. These are long-term items. Doesn't affect your general fund or your current budget. Again, why it's created from a liability perspective? your budget is based on year and this is now time for prior years. So a lot of people taking time to respect you thinking that but yes it will only be on the government. It's very similar to capital assets liability. >> Okay that makes total sense. Okay. >> Yeah. It's not going to affect your payments to speak. >> Gotcha. Okay. Um and um going through we're going to take action item 301. Can I have a motion? >> Tom second Chris. Any discussion? All in favor? Motion passes. And now I'll take a motion to adjourn the um audit committee meeting. Motion, Kelly. Second, Desmond. All in favor
022of discussion. All in favor? Okay, we're done with our committee meeting and we're back in our general workshop meeting. >> Thank you. >> Yes. And >> yes, thank you very much. Thank you. >> Okay. >> All right. As we begin this meeting, can we please rise for the pledge?