Grant Thornton outlines FY26 audit plan for system and flags GASB presentation changes
May 27, 2026 | Public Universities Board of Trustees Meeting, School Districts, Connecticut
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Claire Estston, partner at Grant Thornton, briefed the audit committee on the firm's FY26 audit plan and timeline at the May 27 meeting. Estston said the plan was developed using management inquiries, an assessment of the operating environment and materiality, and includes planning and risk assessment work in the coming weeks, year-end field work in September and a target report issuance in December.
Estston highlighted the primary audit focus areas and called attention to two new GASB pronouncements (GASB 103 and GASB 104) that change presentation and disclosure in financial statements rather than accounting for transactions. "The main impact to the three entities within the system audits is going to be on your P&L," Estston said, describing a change in how state appropriations and certain subsidies may be subtallied in operating results to clarify operating income or loss.
Committee members raised the timing of component/unit (foundation) audits as a material coordination issue. Grant Thornton noted that foundation audits are completed by separate auditors and must be incorporated into system statements. Annette Pavone said state regulations currently allow foundation audits up to six months after their fiscal year-end, which can be too late for system reporting; she said she has requested government relations seek a statutory change to require an October 31 deadline or use memoranda of understanding to enforce timeliness.
Grant Thornton asked the committee whether members were aware of any fraud risks or related-party matters; the committee had no immediate responses and was invited to provide input later if needed. Estston and her team concluded their high-level remarks and invited questions from the committee.
Next steps include continuing planning procedures, coordinating with management on adoption of GASB presentation requirements, and working with institutional staff to align foundation audit schedules for timely system reporting.
Estston highlighted the primary audit focus areas and called attention to two new GASB pronouncements (GASB 103 and GASB 104) that change presentation and disclosure in financial statements rather than accounting for transactions. "The main impact to the three entities within the system audits is going to be on your P&L," Estston said, describing a change in how state appropriations and certain subsidies may be subtallied in operating results to clarify operating income or loss.
Committee members raised the timing of component/unit (foundation) audits as a material coordination issue. Grant Thornton noted that foundation audits are completed by separate auditors and must be incorporated into system statements. Annette Pavone said state regulations currently allow foundation audits up to six months after their fiscal year-end, which can be too late for system reporting; she said she has requested government relations seek a statutory change to require an October 31 deadline or use memoranda of understanding to enforce timeliness.
Grant Thornton asked the committee whether members were aware of any fraud risks or related-party matters; the committee had no immediate responses and was invited to provide input later if needed. Estston and her team concluded their high-level remarks and invited questions from the committee.
Next steps include continuing planning procedures, coordinating with management on adoption of GASB presentation requirements, and working with institutional staff to align foundation audit schedules for timely system reporting.
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