For school districts, a financial statement audit is an important opportunity to demonstrate financial transparency, accountability, and sound stewardship of public resources. While audits occur annually, successful audits are the result of year-round preparation. Taking a proactive approach can help reduce disruptions, improve efficiency, and ensure the audit process runs smoothly for both district personnel and auditors.

Establish Strong Oversight

An effective audit begins with strong governance. Under New York State Education Law, school districts are required to maintain an audit committee responsible for overseeing the audit process. The committee serves as the primary liaison between auditors and district personnel, reviews audit results, and helps implement recommendations for improvement.

Audit committee members should understand their responsibilities, the scope of the audit, and applicable financial reporting requirements. Resources such as the Government Finance Officers Association’s (GFOA) best practices can help committees fulfill their oversight role effectively.

Stay Current and Understand Expectations

School districts must comply with evolving financial reporting requirements, including Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) standards. Staying informed about new pronouncements and updates can help avoid compliance issues and last-minute adjustments.

It is equally important to understand the audit process itself. Auditors are responsible for evaluating and verifying financial information—not preparing accounting records. Before fieldwork begins, districts should ensure that supporting schedules reconcile to the trial balance and that any known discrepancies have been resolved.

Organize Financial Records and Review Internal Controls

Well-organized documentation is essential to an efficient audit. Districts should gather and review key financial records, including general ledgers, reconciliations, payroll reports, invoices, contracts, purchase orders, and supporting schedules. Ensuring records are complete and readily accessible can significantly streamline the audit process.

Districts should also periodically evaluate their internal controls, including procedures related to authorization, recordkeeping, reconciliations, and financial oversight. Strong controls help protect district assets and reduce the risk of errors or fraud. Any prior-year audit findings should also be reviewed to confirm that corrective actions have been implemented and that previously identified issues have been addressed.

Communicate Early and Often

Open communication between district personnel and auditors is one of the most effective ways to avoid delays. District leaders should be prepared to discuss financial processes, operational changes, staffing updates, and any other developments that may affect the audit. Addressing questions promptly and maintaining transparency throughout the engagement helps create a more efficient and productive audit experience.

A Smooth Audit Starts with Preparation

A successful audit is rarely the result of last-minute effort. By maintaining strong oversight, staying current on reporting requirements, organizing financial records, reviewing internal controls, and communicating proactively with auditors, school districts can approach the audit process with confidence. If you have any additional questions about financial statement audits, our education accounting team at RBT CPAs is here to help. For 57 years, we have provided high-quality audit, accounting, tax, and advisory support to organizations throughout the Hudson Valley and beyond. Contact us today to learn how we can be Remarkably Better Together.

Within their first year of service, every member of the board of education is required to partake in a minimum of six hours of training in financial responsibilities and oversight. But what exactly is covered in this training, and why is it so important for board members to participate? Let’s talk about it.

Overview of Requirements

Section 2102-a of the New York State Education Law requires board members within the first year of their term to complete at least six hours of mandatory training on financial oversight, accountability, and fiduciary responsibilities of board members. This requirement applies to all appointed or elected board of education members and BOCES board members. Even board members who are certified public accountants with experience auditing school districts are required to participate.

All training curricula and providers must be approved by the Commissioner of Education. Acceptable courses include those offered by the State Education Department, the Office of the State Comptroller, and organizations or individuals that have been approved by the Commissioner of Education. Trainings are offered in person, in live virtual format, or online. After completing training, board members must file a certificate of completion with the district clerk. Board members are only required to complete this training once, regardless of terms served.

Why Is This Training Necessary?

The purpose of this mandated training is to ensure board members are aware of their legal and fiscal responsibilities, as well as to equip them with the expertise needed to provide financial oversight, manage district funds, and improve student outcomes.

What Does the Training Cover?

Topics covered by these courses include the following:

• The roles and responsibilities of district officials, including internal auditors, treasurers, and members of the audit committee
• Financial reports
• Relevant laws and regulations
• Internal controls and risk assessments
• Revenue sources and the budget process
• Internal and external audits
• Monitoring school district financial condition
• Key financial management and accounting practices such as cash flow projections and budget transfers
• Preventing and responding to fraud, waste, and abuse of district resources
• Indicators of a financially stressed district

The Importance of Fiscal Oversight Training

Training in these core areas provides board members with an understanding of key financial concepts, their fiduciary responsibilities, and how to manage public funds. While not required, it is recommended that board members periodically re-take courses to stay up to date with changing regulations. Participating in these trainings is just one step to ensure the financial health of your school district. Another way to keep your district fiscally sound is by partnering with RBT CPAs’ education accounting team. Our experts are familiar with the unique financial challenges facing public school districts and are well-equipped to support your district’s accounting, tax, audit, and advisory needs. Give RBT CPAs a call today and find out how we can be Remarkably Better Together.

In April of 2024, the Office of Management and Budget (OMB) issued significant revisions to Uniform Guidance, updating several administrative, cost, and audit requirements for recipients of federal awards. Effective for fiscal years starting on or after October 1, 2024, these revisions are intended to reduce administrative burdens on award recipients, align with statutory requirements, clarify certain sections of the guidance, and simplify language to improve readability. This article provides an overview of some of the changes to Uniform Guidance and the Single Audit that school districts should be aware of.

Key Changes to Single Audit Requirements

• Increased Single Audit threshold: The spending threshold for the Single Audit has been raised from $750,000 to $1 million, meaning only school districts that expend $1 million or more in federal funds within the fiscal year will be subject to a Single Audit.
• Revised type A program determination: The threshold for defining “Type A” programs has also been raised from $750,000 to $1 million for entities expending between $1 million and $34 million in federal awards.
• New cybersecurity requirements: Recipients of federal awards must now implement reasonable cybersecurity measures as a part of their internal controls to safeguard sensitive information.
• Increased de minimis indirect cost rate: The de minimis rate for indirect costs has been raised from 10% to 15% of modified total direct costs (MTDC).
• Revised terminology: The term “non-federal entity” has been replaced with the term “recipient” or “subrecipient.”
• Increased subaward threshold: The exclusion threshold of subawards has been raised from $25,000 to $50,000 for modified total direct costs.
• Updated definition of equipment: The capitalization threshold for equipment has been raised from $5,000 to $10,000.
• “Questioned costs” clarification: The definition of “questioned costs” has been revised, with examples added to provide further clarification.
• Explanation required for questioned costs: When there are questioned costs, but the dollar amount is undetermined or not reported, the audit finding must include an explanation describing why the dollar amount is undetermined or not reported.
• Clarified definition of “period of performance”: The definition of “period of performance” has been updated to mean the interval of time between the start and end date of a federal award, which may span multiple budget periods.

What’s Next?

School districts should review and update their internal controls to ensure compliance with the revised Uniform Guidance. For additional assistance in preparing your district for audits and for all of your other accounting needs, please don’t hesitate to reach out to our education accounting team at RBT CPAs. We’re here to ensure your school district stays in compliance with all applicable federal and state requirements and accounting standards. Give us a call today and find out how we can be Remarkably Better Together.

Two statements issued by the Governmental Accounting Standards Board (GASB)—Statement 103 and Statement 104—have become effective for fiscal years beginning after June 15, 2025. Here’s what school districts need to know about the updated financial reporting requirements under these two statements.

GASB 103: Financial Reporting Model Improvements

The purpose of GASB 103 is to improve certain aspects of the financial reporting model in order to enhance its effectiveness in conveying essential information. These changes, effective for fiscal years beginning after June 15, 2025, are intended to improve clarity, quality, consistency, comparability, and accountability within the financial reporting process for governmental entities.

Below are the components of the financial reporting model that have been modified under GASB 103:

1. Management’s Discussion and Analysis

• • Information in MD&A must be limited to the topics discussed in these five sections: Overview of Financial Statements, Financial Summary, Detailed Analyses, Significant Capital Asset and Long-Term Financing Activity, and Currently Known Facts, Decisions, or Conditions.
  • Analyses should explain why balances and results of operations changed, rather than merely stating the amounts or percentages by which they changed.
  • Explanations provided in the MD&A section should not be duplicated across multiple sections, and “boilerplate” discussions should be avoided. Discussions should focus on the most relevant information specific to the primary government.

2. Unusual or Infrequent Items

• • “Unusual or Infrequent items” are transactions or other events that either occur infrequently or are unusual in nature.
  • School districts must display the inflows and outflows related to each “unusual or infrequent item” separately.

3. Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position

• • Note: Though not typical, proprietary fund statements are occasionally required for school districts operating business-type activities.
  • GASB 103 requires that governments continue to distinguish between operating and nonoperating revenues and expenses in the proprietary fund statement of revenues, expenses, and changes in fund net position.
  • “Nonoperating revenues and expenses” include:
    • subsidies received and provided,
    • contributions to permanent and term endowments,
    • revenues and expenses related to financing,
    • resources from the disposal of capital assets and inventory, and
    • investment income and expenses.
  • “Operating revenues and expenses” include all revenues and expenses that are not nonoperating revenues and expenses.
  • A subtotal for operating income (loss) and noncapital subsidies must be presented before reporting other nonoperating revenues and expenses.
  • “Subsidies” are defined as:
    • resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise,
    • resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and
    • all other transfers.

4. Major Component Unit Information

• • School districts must present each major component unit separately in the statement of net position and statement of activities (as long as it does not reduce the readability of these statements).

5. Budgetary Comparison Information

• • School districts must present budgetary comparison information as required supplementary information (RSI).
  • Districts must present (1) differences between the original and final budget amounts and (2) differences between the final budget and actual amounts.
  • Significant variances must be explained in notes to RSI.

GASB 104: Disclosure of Certain Capital Assets

The objective of GASB 104, which is also effective for fiscal years beginning after June 15, 2025, is to provide users of government financial statements with important information regarding certain types of capital assets. Certain assets must now be disclosed separately, by major asset class, in the capital assets note disclosures.

Below are the capital assets that must now be separately disclosed:

• Lease assets recognized under Statement No. 87, Leases,
• Intangible right-to-use assets recognized under Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements,
• Subscription assets recognized under Statement No. 96, Subscription-Based Information Technology Arrangements, and
• Intangible assets other than the three types listed above.

GASB 104 also requires additional disclosures for capital assets held for sale. An asset meets the definition of a “capital asset held for sale” if (1) the government has decided to pursue the sale of the capital asset and (2) it is probable that the sale will be finalized within one year of the financial statement date. Capital assets held for sale should be evaluated each reporting period. Governments should disclose the following: (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.

Additional Guidance

RBT CPAs’ education accounting team is here to support your district as you prepare for the new reporting requirements under GASB 103 and 104. Please don’t hesitate to reach out for additional guidance and support.

On January 13, Governor Hochul delivered the annual State of the State Address from Albany, emphasizing the priorities of affordability, safety, and expanded opportunities for New Yorkers. Included in the governor’s proposal are several initiatives related to education, with a focus on affordable child care and supporting New York’s students across all age groups. Below are some of the education-focused initiatives proposed as part of the 2026 State of the State agenda.

• $1.7 billion increase in funding for universal child care, in addition to previous expansions.
• $500 million investment towards accomplishing the goal of statewide universal access to prekindergarten for four-year-olds by the start of the 2028-29 school year.
• Launch of “2-Care” in New York City, providing free child care to two-year-olds, including students with disabilities and English language learners.
• Partnership between the governor and New York City to strengthen the city’s 3-K program.
• $1.2 billion increase in investment in the Child Care Assistance Program (CCAP).
• Legislation aimed at expanding the NYS child and dependent care tax credit to provide relief for child care costs.
• Establishment of the Office of Child Care and Early Education, which will lead the implementation of universal child care throughout the state and ensure the quality of programs.
• A review of state regulations and policies with the goal of reducing barriers to providing childcare.
• A review of tax incentives for NYS employers for addressing the childcare needs of their employees through methods such as subsidies and on-site child care.
• Support for the early education workforce through expanded access to funding, credentialing, and training for prospective educators—initiatives include expanding the Masters in Education Teacher Incentive Scholarship, classifying early education as an in-demand occupation so that early education students can qualify for federal Workforce Pell grants, expanding part-time Tuition Assistant Program (TAP) aid for students in approved non-degree teaching and child care programs, and more.
• Increased awareness of expanded state child tax credit, which went from $330 per child to $1,000 per child under 4 beginning in 2026, and to $500 per child ages 4-16 beginning in 2027.
• State-supported partnerships between high-need districts and tutoring providers to deliver high-impact tutoring to students.
• A task force aimed at examining the cause of the teacher shortage in the state and proposing solutions.
• Schoolyard infrastructure and nature-based solutions to combat extreme heat in New York’s playgrounds.
• Expansion of the Indigenous Youth Service Project to additional districts.
• Continued freeze on tuition for resident undergraduate students at SUNY campuses and CUNY senior colleges to make college more affordable for New York residents.
• Expansion of the list of eligible high-demand jobs under SUNY and CUNY Reconnect to include fields such as logistics, air traffic control and transportation, and emergency management.
• Youth mental health initiatives, such as mental health first aid training and financial awards for schools that demonstrate strong mental health supports.

Learn More and Connect

This article highlights many of the proposed education initiatives for 2026, but it is not an exhaustive list. To read about each of the initiatives in depth, please refer to the 2026 State of the State Book. Consider partnering with RBT CPAs as your district navigates new state programs and funding. RBT CPAs is here to support all of your district’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

Like all other organizations, school districts require a strong system of internal controls to protect their financial operations. Internal financial controls help to safeguard a district’s assets, preventing abuse, waste, and corruption. This article highlights the financial areas for which school districts should establish internal controls and provides examples of controls for each. Please note that these examples are not exhaustive.

According to the Office of the New York State Comptroller, school districts should implement internal controls for each of the following key financial areas.

1. Cash Receipts: Cash—which encompasses money, checks, and money orders—is the most vulnerable to theft.

Control Examples:

• • Centralize cash collections in the office of the CFO or treasurer to reduce the number of locations and people handling cash.
  • Assign separate cash drawers for each employee handling cash.
  • Segregate duties between employees with custody of cash, employees authorizing transactions, and those reporting transactions.

2. Cash Disbursements: Fraud is even more common in the area of cash disbursements than in the area of cash receipts.

Control Examples:

• • Keep blank checks in a secure location.
  • Segregate duties between the employee who prepares and signs checks and the person who audits and approves claims.
  • Limit the authority to sign checks to a minimal number of employees.

3. Bank Accounts: Steps must be taken to ensure that your district’s bank account information is protected, especially in today’s digital environment.

Control Examples:

• • Reconcile bank accounts monthly.
  • Limit access to account information.
  • Segregate duties between the employee performing bank reconciliations, employees with custody of cash, and those recording or authorizing transactions.

4. Billed Receivables: When school districts collect funds for services they provide, those charges and accounts must be accurately recorded and tracked.

Control Examples:

• • Create a written policy stating the frequency of billings, billing rates, collection periods, and other guidelines for collections.
  • Post payments received to individual accounts as soon as possible.
  • Reconcile the receivable control account balance to the sum of individual accounts.

5. Procurement: Internal controls over procurement procedures help to prevent unauthorized and nonessential purchases, evaluate cost-effectiveness, and ensure requirements for fair and open competition are followed.

Control Examples:

• • Establish clear approval processes for purchases.
  • Verify the availability of budget appropriation prior to approval.
  • Segregate duties within the approval process.
  • Establish policies governing credit card usage.

6. Payroll: Controls over payroll and benefits ensure that employees are paid the correct amount and help to prevent payroll fraud.

Control Examples:

• • Establish salary authorization procedures.
  • Reconcile the payroll bank account monthly.
  • Segregate payroll authorizations from payroll preparation and processing.
  • Limit access to digital payroll files and applications.

7. Classifying Employees vs. Independent Contractors: School districts should have procedures in place for determining whether someone is an employee or an independent contractor.

Control Examples:

• • Formally create all new employee positions, with approval from the appropriate civil service agency if required.
  • Only add individuals to payroll when a vacant civil service position exists or has been requested through the proper channels.

8. Equipment and Consumables: This category includes large equipment such as snow plows and certain office equipment, as well as portable items like laptops and cameras. Consumables include items such as gasoline, cafeteria food items, and printer paper.

Control Examples:

• • Maintain inventory records and conduct yearly physical inventory counts.
  • Label equipment as property of the school district or with serial numbers.
  • Store consumables in locked areas.
  • Periodically reconcile fuel purchases vs. usage.

9. Information Technology: Financial processes today are inextricably linked with information technology. A secure IT system is necessary to protect your district’s financial information and resources.

Control Examples:

• • Establish a centralized IT administration for overseeing computer and network operations.
  • Require approval for all new hardware and software from IT administration.
  • Adopt a comprehensive IT security plan.
  • Establish a two-factor authentication system for users to sign into the network and certain applications.

10. Outsourced Services

Control Examples:

• • Create written agreements stating the contractual responsibilities of both the service provider and the school district.
  • Review the service provider’s audit reports and internal control procedures.

Protect Your School District with RBT on Your Team

RBT CPAs’ experts are here to assist in making sure your district’s assets are protected from risk. Among our other services, RBT’s Education team can evaluate your school district’s system of internal financial controls for quality and effectiveness. Call us with your questions or for more information, and find out how we can be Remarkably Better Together.

With the October 15^th deadline for external audits behind us, it’s time for school districts to start thinking about internal audits. This article provides a broad overview of internal audits and their role within school districts.

As of 2006, all school districts and BOCES in New York State are required to establish and maintain an internal audit function and to conduct internal audits at least annually. The only districts exempt from this requirement are districts that employ fewer than eight teachers, those with general fund expenditures totaling less than $5 million in the previous school year, and districts with enrollment of less than 1,500 students in the previous school year. Exempt districts must certify their exemption annually. A school district may hire an independent contractor or utilize a district employee to conduct an internal audit. In either case, the internal auditor must be independent of district business operations and also meet certain professional auditing standards.

The purpose of an internal audit is to review the district’s financial operations, identify risks, and assess the district’s system of internal controls. In conjunction with external audits, internal audits help to safeguard your district’s assets, prevent waste and abuse, and maintain your district’s compliance with applicable policies and laws. It is the responsibility of the board to take corrective actions based on the findings of the internal audit. The audit committee is required to assist in the oversight of the internal audit function, review the findings of the internal auditor, and monitor the implementation of the internal auditor’s recommendations by management.

The internal auditor is responsible for the following:

1. Developing a risk assessment of district operations that reviews the district’s financial policies, procedures, and internal controls (i.e., segregation of duties, authorization processes, recordkeeping, reconciliations).
2. Annually reviewing and updating this risk assessment.
3. Periodically testing one or more areas of the district’s operations.
4. Preparing reports (at least annually) stating risk assessment findings and recommended changes, with timeframes for implementation.

The New York State Office of the State Comptroller highlights some of the questions that internal audits aim to answer. These include:

• Efficiency of operations: Are the district’s resources being used in the most efficient manner possible?
• Effectiveness of operations: Is a particular program or operation successfully achieving its intended results?
• Compliance: Is a particular area of operations being conducted in compliance with the relevant laws, regulations, agreements, policies, and procedures?

Financial operations that may be evaluated include, but are not limited to:

• Payroll and personnel
• Cash receipts and revenue
• Accounts payable
• Cash disbursements
• Travel and conference expenses
• Extra-classroom activity funds

Internal audits can extend beyond risk assessments of financial operations. Some other operational areas that internal auditors can assess include, but are not limited to:

• School security
• Bus routes
• Insurance coverage
• Performance evaluations
• Energy conservation programs
• Portable inventory items
• Fuel facilities

Conclusion

Internal audits represent a critical function that, in conjunction with annual external audits, help school districts monitor and maintain their financial health. For additional guidance regarding the internal audit process, please do not hesitate to reach out to our experts at RBT CPAs. RBT is here to support your district’s accounting, tax, audit, and advisory needs. Give us a call today to learn more.

The New York State budget for 2025-2026, passed in May, includes several education initiatives aimed at expanding access to educational opportunities for New York residents. Among these initiatives is the SUNY and CUNY “Reconnect” program, which launched with the start of the Fall 2025 semester. The State has allocated $47 million toward this program, which offers free community college to adult SUNY and CUNY students in high-demand fields. Below are some of the highlights of this statewide initiative.

What is the purpose of the program?

The purpose of the CUNY/SUNY Reconnect program is to expand access to higher education and career mobility for adult learners in New York State. The program aims to make college affordable for a greater pool of New Yorkers while also strengthening the state’s workforce in emerging industries.

Is this program new to New York State?

CUNY Reconnect first launched its pilot program in the fall of 2022, with funding of $4.4 million. The FY26 enacted state budget significantly expands the reach and impact of the CUNY Reconnect program. SUNY Reconnect launched for the first time in 2025.

Who qualifies for the program?

The program is open to New York residents between the ages of 25 and 55 with no previous college degree, who enroll in approved SUNY or CUNY associate degree programs in the following high-demand fields:

• Advanced manufacturing
• Artificial Intelligence
• Cybersecurity
• Engineering
• Technology
• Nursing and allied health professions
• Green and renewable energy
• Pathways to teaching in shortage areas

Students must be New York State residents or qualify for in-state tuition. Students must also take at least six credits per semester and must complete their degree within ten semesters.

What costs does the program cover?

The Reconnect program covers tuition, fees, books, and supplies, after applicable financial aid, for qualifying students. Eligible students will also have access to academic advising and personal support through the program.

Are online courses covered?

Yes, both SUNY and CUNY Reconnect cover eligible online courses in addition to in-person classes.

When is funding available?

Funding became available at the start of the Fall 2025 semester.

Have more questions?

New York’s free community college program aims to remove financial barriers to higher education for adult learners while also promoting workforce development in high-demand fields. Additional information regarding this initiative, including application information and answers to Frequently Asked Questions, can be found on the SUNY and CUNY websites. And as always, for all your school district’s accounting, tax, audit, and advisory needs, please don’t hesitate to reach out to RBT CPAs. RBT CPAs has been providing accounting services to organizations and businesses in the Hudson Valley and beyond for over 55 years. Call us today to find out how we can be Remarkably Better Together.

It’s that time of year again—school has started back up in New York. And with the new school year comes new state mandates, including a major policy change—no more smartphones in schools.

Beginning with the 2025-2026 school year, all New York public schools are required to implement distraction-free school policies. These policies must prohibit the use of non-school-issued internet-enabled devices during the entire school day (“bell to bell”) on school grounds. Such devices include, but are not limited to, cellphones, smartwatches, and tablets. The law applies to all public school districts, BOCES, and charter schools serving students in grades 7-12.

The policy includes certain exemptions to cellphone restrictions, such as when a cellphone is needed to manage a students’ healthcare needs (i.e., monitoring insulin levels), for an educational purpose authorized by a teacher or principal, for translation services, for use by a student in family caregiving, in the event of an emergency, and when included in a student’s IEP or Section 504 plan.

New York is the largest state to enact a statewide bell-to-bell smartphone restriction policy.

Policy Requirements

The law mandates that schools develop and implement distraction-free policies, beginning with the 2025-26 school year. Districts were required to adopt a policy by August 1, 2025. Local stakeholders, including teachers, parents, and students, must be consulted in the development of the policy. Policies must include a plan for storing devices and a method by which parents can contact their children during the school day. Schools can choose which storage solutions work best for their needs. The policy must be posted and accessible on the school’s website.

What funding is available for implementation?

Funding for policy implementation totals $13.5 million. Schools will be granted $10.90 per secondary student, based on 2023-2024 school year enrollment. These funds must be used exclusively to support distraction-free learning policies.

According to NYSED, allowable uses of funds include:

• Device storage, such as lockers, lockable pouches, and centralized secure storage.
• Policy development, including policy drafting and stakeholder consultation.
• Professional development to train staff on policy implementation and enforcement.
• Family and student outreach, including communicating and translating the policy.
• Student education to teach responsible device use.
• Other implementation costs (must be documented).

Why was the law passed?

The goal of a bell-to-bell distraction-free learning environment, according to the NYSUT Bell-to-Bell Local President Toolkit, is “to create a space where students can think critically, stay present, and build strong academic and social-emotional skills free from the pull of notifications or social media.”

Reasons for the law’s enactment include the following:

• To remove the influence of digital distractions during the school day.
• To encourage students to engage meaningfully with learning and with their peers.
• To protect youth mental health and support student wellbeing.
• To enhance educational outcomes.

What are the benefits of distraction-free learning?

According to NYSUT’s Bell-to-Bell Toolkit, the benefits of distraction-free learning include:

• Academic benefits: improved student focus, engagement, test scores, and academic performance, and more efficient use of instructional time.
• Social-emotional benefits: improved socialization in lunchrooms and hallways, stronger communication skills, decreased social anxiety, and reduced cyberbullying.
• Instructional benefits: fewer discipline referrals and fewer bathroom requests to check phones.
• Mental health benefits: decreased stress and anxiety, less social media-related drama, reduced bullying, and fewer visits to school counselors for mental health.
• Benefits for educators: improved staff morale and job satisfaction, more instructional time, and more meaningful interactions with students.

Many school districts that implemented distraction-free policies prior to the statewide mandate have already noticed positive impacts, including increased focus and classroom engagement, improved student interactions, decreased burden on teachers, a reduction in fights and suspensions, and improved test scores.

How We Can Help

While you focus on keeping your district distraction-free and navigating the state’s new mandates, remember that RBT CPAs is here to support all of your district’s accounting, tax, audit, and advisory needs. Call us today to find out how we can be Remarkably Better Together.

Managing a school district comes with a range of financial responsibilities—and having the right knowledge and tools at your disposal makes all the difference. To help local municipal and school district leaders stay on top of budgeting, cash flow, and long-term planning, the Office of the New York State Comptroller (OSC) created the “Financial Toolkit for Local Officials.” Below, we’ve highlighted some of the points you may find most useful.

Spotting Signs of Financial Stress

The first step in protecting your district’s financial health is knowing how to identify early warning signs of fiscal stress. The OSC toolkit suggests:

• Performing regular financial condition analyses.
• Looking at audit findings from other school districts.
• Using the OSC’s Fiscal Stress Monitoring System (FSMS) for objective insights.

Together, these strategies can help you stay ahead of potential issues before they grow into more serious financial challenges.

Budgeting with Confidence

Budgeting is central to the financial management of any organization. The OSC guide, Understanding the Budget Process, walks local officials through the essentials of preparing, adopting, and monitoring a budget. Here are some of the key steps of the budgeting process covered by the guide:

1. Estimating Expenditures: Expenditure estimates should include categories such as employee salaries and benefits, debt service, energy costs, transportation, maintenance, administration, “charter school basic tuition” payments, and payments to employees for compensated absences or employee separation. Estimates are reviewed by the budget officer (typically the superintendent in a school district).
2. Projecting Revenue: Revenue forecasts typically rely on 3–5 years of historical data and should include sources such as real property taxes, non-property taxes, state and federal aid, and any other sources of revenue.
3. Estimating Fund Balance: Since fund balance can be used to help fund the budget, it’s important to estimate it carefully—even if projecting months in advance can be tricky.
4. Determining Real Property Taxes: Finally, school districts need to determine the amount of real property taxes needed to balance the budget. The formula for calculating the tax levy can be found in the OSC guide.

If your district is already facing a budget deficit, the toolkit also outlines options such as modifying the current budget, using reserve funds, drawing on surplus fund balance, or issuing short-term debt.

Staying on Top of Cash Flow

Cash flow management involves policies and procedures that help to control the movement of cash in and out of the school district. The OSC’s recommendations for effective cash flow management include:

• Actively monitoring cash flow.
• Accelerating the collection and deposit of receipts.
• Timing disbursements strategically.
• Maximizing interest earnings.
• Following state laws for depositing and investing public funds.

Additional Resources

School district leaders can refer to the OSC Financial Toolkit for additional information and resources including publications, fact sheets, and webinars.

And remember—you don’t have to navigate these financial challenges alone. At RBT CPAs, we partner with school districts and municipalities across New York to provide accounting, audit, tax, and advisory services that keep communities running smoothly. Reach out to learn how we can be Remarkably Better Together.