External auditor reports strong finances for Eastport-South Manor; GASB 101 raises reported compensated-absence liability
December 11, 2025 | EASTPORT-SOUTH MANOR CSD, School Districts, New York
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Jill Sanders of audit firm Cullinan Danowski told the Eastport-South Manor Central School District Board of Education on Dec. 10 that the district's 06/30/2025 audit reflects required accounting changes and overall fiscal strength. "This was the completion of our audit for 06/30/2025," Sanders said as she reviewed the report provided to trustees.
Sanders said the district implemented GASB 101 for reporting compensated absences. "Now under GASB 101, the number is much larger," she said, explaining the change expands the reported liability to include accumulated but unused leave. The auditor described the adjustment as a "reporting number only" and gave the value as "a big adjustment. It's $2,000,000, a little bit better than 2,000,000." She added the district appropriately charges payouts against the budget when leave is actually paid.
On the district's overall condition, Sanders told the board the district has a sound internal-control structure: there was no management letter and audit adjustments were limited to standard audit entries. She said Standard & Poor's awarded the district a double-A rating and that favorable market conditions produced "a premium of over $3,000,000" when issuing debt, which reduces net borrowing costs.
The audit also included a separate cash-basis statement for extra-classroom activities. Sanders said about $300,000 flows through club and activity accounts and that the aggregate year-end cash balance was about $150,000.
Board members thanked the auditors and district business-office staff for cooperation. The board accepted the auditor's report as part of the consent agenda later in the meeting.
What happens next: the district will incorporate GASB 101 reporting in its financial statements and continue monitoring budget and reserve levels; board and administration noted the audit committee reviewed the statements in November and will remain engaged during next year's budget process.
Sanders said the district implemented GASB 101 for reporting compensated absences. "Now under GASB 101, the number is much larger," she said, explaining the change expands the reported liability to include accumulated but unused leave. The auditor described the adjustment as a "reporting number only" and gave the value as "a big adjustment. It's $2,000,000, a little bit better than 2,000,000." She added the district appropriately charges payouts against the budget when leave is actually paid.
On the district's overall condition, Sanders told the board the district has a sound internal-control structure: there was no management letter and audit adjustments were limited to standard audit entries. She said Standard & Poor's awarded the district a double-A rating and that favorable market conditions produced "a premium of over $3,000,000" when issuing debt, which reduces net borrowing costs.
The audit also included a separate cash-basis statement for extra-classroom activities. Sanders said about $300,000 flows through club and activity accounts and that the aggregate year-end cash balance was about $150,000.
Board members thanked the auditors and district business-office staff for cooperation. The board accepted the auditor's report as part of the consent agenda later in the meeting.
What happens next: the district will incorporate GASB 101 reporting in its financial statements and continue monitoring budget and reserve levels; board and administration noted the audit committee reviewed the statements in November and will remain engaged during next year's budget process.
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