Internal Controls Over Purchasing
The Board adopted a purchasing policy that does not require use of competitive methods or outline procedures for acquiring professional services. The policy states that the acquisition of professional services, unless directed by the Board, requires no solicitation of proposals or quotations. We found that the Village did not solicit competition, such as a request for proposal (RFP), or provide adequate documentation of actions taken when procuring six of the 10 professional services vendors, who were paid approximately $332,000 during our audit period. We also found that Village officials did not always comply with the Village’s policy and obtain the required number of quotes or proposals when procuring products and services. We examined payments to seven vendors totaling approximately $51,000 that required quotes or proposals. We found five of the seven purchases or services, totaling approximately $44,000, were procured without soliciting the required quotes or proposals. Village of Bronxville[complete audit - pdf]

Internal Controls Over Selected Financial Operations
Of the 10 audit recommendations, seven recommendations were fully implemented, two recommendations were partially implemented, and one recommendation was not implemented. East Syracuse-Minoa Central School District[complete audit - pdf] | [2008 audit report - pdf]

Internal Controls Over Financial Operations
Internal controls were not established to ensure the Town’s financial activity was accurately recorded and reported on a timely basis. The bookkeeper attempted to keep track of Town finances, but lacked the training and experience to adequately do so. As a result, financial operations were deficient because the Supervisor failed to maintain complete and accurate financial records and did not submit, along with other officers and employees of the Town, his records to the Board for the required annual audit. The lack of complete and accurate accounting records limits the Board’s ability to make informed financial decisions and the lack of Board oversight exposes Town assets to the risk of fraud and abuse without detection by Town officials. Finally, internal controls over fuel inventory and usage were not appropriately designed to adequately safeguard the Town’s fuel. Neither the Superintendent nor the golf course manager maintained adequate inventory records. Town of Elizabethtown[complete audit - pdf]

Internal Controls Over Purchasing and Capital Assets
Of the five audit recommendations included in the report, one recommendation was implemented and four recommendations were not implemented. Germantown Central School District[complete audit - pdf] | [2007 audit report - pdf]

We found that 75 percent of the authorities we examined compensated their board members appropriately. Ten of these authorities were not authorized to compensate their board members, and they did not. Of the five that could compensate their board members, three provided compensation within statutory limitations and two chose not to provide compensation. However, we found that the remaining 25 percent of local public authorities audited were providing compensation, including fringe benefits, which exceeded authorized amounts by $244,278. Three water authorities and one housing authority failed to consider the value of the board member’s fringe benefits, such as health insurance, in determining the total amount of compensation paid to each board member. Additionally, one housing authority failed to pay the compensation of its board members; these board members were inappropriately compensated by the town in which the authority is located. Not only did the town inappropriately compensate the authority’s board members, but it also provided them with compensation, including fringe benefits, that was well beyond statutory limitations. Public Authority Board Member Compensation[complete audit - pdf]

Internal Controls Over Selected Financial Operations
In July 2007, $600,000 was improperly transferred from a District bank account to various external bank accounts. The depository bank quickly recovered all but $105,000, which the District was able to recoup from its insurance company and the bank in May 2008. However, the District has still not improved controls over all types of wire transfer activity. Further, the District paid $9.4 million to vendors without auditing the claims, and paid $900,000 for professional services that were awarded without using RFPs. Lindenhurst Union Free School District[complete audit - pdf]

Internal Controls Over Selected Financial Operations
Of the 19 audit recommendations, nine recommendations were fully implemented, nine recommendations were partially implemented, and one recommendation was not implemented. Clymer Central School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Selected Financial Operations
Of the eight audit recommendations, seven recommendations were implemented and one recommendation was not implemented. Cortland City School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Selected Financial Activities
Of the 12 recommendations, we found that nine recommendations were fully implemented, one was partially implemented, and two were not implemented. Lake Placid Central School District[complete audit - pdf] | [2006 audit report - pdf]

Internal Controls Over Cash Receipts
Of the 11 audit recommendations included in the original report, nine recommendations were fully implemented and two recommendations were partially implemented. Village of Port Henry[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Selected Financial Activities
Of the 12 audit recommendations, three recommendations were fully implemented and nine recommendations were partially implemented. Schoharie Central School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Computer Equipment and Employee Expense Reimbursements
Of the 12 audit recommendations, the District fully implemented 10 recommendations and did not implement two recommendations. Schuylerville Central School District[complete audit - pdf] | [2006 audit report - pdf]

Internal Controls Over Purchasing
Although the Board has adopted a purchasing policy, it is not adequate and Village officials did not always adhere to it. The policy does not require the use of competition or provide proper and detailed guidance for Village employees when procuring professional services. The policy simply states that "professional services requiring special or technical skill, training or expertise must be chosen on accountability, reliability, responsibility, education and training, judgment, integrity and moral worth. These qualifications are not necessarily found in the individual or company that offers the lowest price and the nature of the services are such that they do not readily lend themselves to competitive procurement procedures." Therefore, Village officials paid $50,208 for professional services and $15,387 for goods without seeking competition. Village of Sloatsburg[complete audit - pdf]

Internal Controls Over Selected Financial Operations
Of the nine audit recommendations, seven recommendations were fully implemented, one was partially implemented and one recommendation was not implemented. South Glens Falls Central School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Selected Financial Operations
Of the 11 audit recommendations, eight recommendations were fully implemented and three recommendations were partially implemented. Warrensburg Central School District[complete audit - pdf] | [2007 audit report - pdf]

Financial Condition and Internal Controls Over Selected Financial Activities
The District has accumulated approximately $8.9 million that should be used to benefit taxpayers by paying one-time expenditures, funding necessary reserves, reducing debt and/or reducing the tax levy, in accordance with applicable statutory requirements. The District has not ensured that budget estimates are reasonable. We found that District officials routinely overestimated appropriations and underestimated revenues. Poor budget estimates resulted in revenues exceeding expenditures by approximately $30.1 million, in total, (average of $7.5 million) over the last four fiscal years, on an average total budget of about $136 million. These operating surpluses have been used to increase nine general fund reserves. In addition, District officials could not provide adequate documentation to support the funding levels of two reserves and did not properly use another reserve. Further, District officials did not properly account for and report a current liability and reserve for encumbrances, which had the effect of reducing unreserved fund balance by nearly $4 million. In addition, the Board has not established adequate policies or procedures for the audit of claims. Finally, the District's purchase card policy and procedures do not adequately ensure that all transactions made with purchase cards are appropriate. Williamsville Central School District[complete audit - pdf]

Audit of Selected Financial Transactions
The Board did not protect the District's financial interests from waste and abuse. The Board's failure to develop sound policies to manage District resources, its unwillingness to monitor District finances, and its deference to the individuals holding the Superintendent's position resulted in a poor control environment. In addition, the former Superintendent compensated Superintendent's Employee Group members at his discretion and provided employees with $164,550 in undocumented bonuses and salary increases. The claims auditor failed to audit $9 million in District claims. Finally, the District did not adopt comprehensive purchasing procedures. We found exceptions with all 61 contracts with professional service providers totaling $2,673,082 that we examined, including that the District entered into 58 of these contracts totaling $2,584,082 without issuing requests for proposals. Rochester City School District[complete audit - pdf]

Internal Controls Over Selected Financial Activities
Internal controls over purchasing and information technology were not appropriately designed and operating effectively because the Board did not provide sufficient oversight over the purchasing process and the Board and Town officials did not establish adequate policies and procedures to address the possible loss or misuse of the Town's information technology (IT) system and computerized data. In addition, we reviewed internal controls over the police payroll and found them to be appropriately designed and operating effectively. Town of Rotterdam[complete audit - pdf]

Financial Condition and Internal Controls Over Payroll and Purchasing
The District's budgeting practices have resulted in the District accumulating more than $22 million in idle funds, much of which should be used to benefit taxpayers. The Board and District officials consistently overestimated expenditures and underestimated revenues, which resulted in annual operating surpluses, and increases to fund balance, totaling $19.5 million over the last five fiscal years. In fact, there appears to be a pattern of adopting budgets that generate more revenue than required for District operations, and then allocating the unused balance to reserve funds in amounts which appear unnecessary and excessive. We found that reserve funds contained $19 million in unsupported or unauthorized funds. We also found that 21 employees were granted an additional 1,266 days of sick leave without Board approval. Three of the 21 employees have retired and were paid almost $16,000 for these additional days. Finally, District officials have not fully implemented or enforced the purchasing policy. We found that the services of three of the providers were procured without the use of requests for proposals (RFPs) or any other form of competition. Rush-Henrietta Central School District [complete audit - pdf]

Internal Controls Over Selected Financial Operations
We found that the District paid 11 of the 14 employees tested, a total of $58,415 upon separation for 300 vacation and personal days to which they were not entitled by contract. The former Associate Superintendent for Personnel and Administration was also overpaid $5,800 for 65 sick days that were not authorized by his individual employment agreement. We also found that the accrual records of the three chief and four head custodians we examined had inaccurate vacation leave balances, which, if converted into cash payments, would result in total overpayments of $20,546. We also found weaknesses in the internal controls over cash disbursements and fuel inventories. Lastly, we found that District managers have not effectively addressed the safeguarding of computerized financial data against unauthorized access or potential loss in the event of a disaster. West Babylon Union Free School District[complete audit - pdf]

Internal Controls Over Select Financial Activities
Because BOCES entered into a service agreement without authority to do so, public funds were used for questionable overseas activities. BOCES then placed approximately $1.2 million in proceeds in the Monroe 2-Orleans Educational Foundation, Inc. (Foundation) with no authority to use public funds for this purpose. The Foundation appears to have transferred the moneys to the Rochester Area Community Foundation, Inc (RACF) in order to avoid the restrictions on investments of BOCES moneys. As a result of using higher risk investments, there was a decline of approximately $300,000 as of March 31, 2009. BOCES officials also contributed over $10 million to an Other Post Employment Benefits Trust, without the legal authority to maintain such a trust. In addition, the Board failed to properly establish two reserves or provide adequate oversight for five reserves, which had a combined balance of almost $2.5 million as of June 30, 2009. The Board failed to properly oversee and train the claims auditor, and did not receive or require monthly reports from the claims auditor. Finally, we found weaknesses in BOCES' information technology structure, such as a lack of an entity-wide security assessment, lack of a disaster recovery plan, and inappropriate user rights assigned to some individuals. Monroe 2 Orleans BOCES[complete audit - pdf]

Internal Controls Over Financial Operations
The Board did not hold the number of meetings required by its bylaws, some Trustees did not fulfill their obligation to attend meetings, and the Board's Secretary and Treasurer did not perform the duties for which they were appointed. The Board failed to provide proper stewardship of Library operations, set an example to staff, or fulfill its fiduciary responsibilities, including auditing and approving claims before payment; ensuring that Board meetings were recorded and that Library funds were disbursed in accordance with industry guidelines; maintaining a proper segregation of duties between financial decision-making and cash custody; and preparing financial reports in a manner consistent with the City's accounting methods. We also found control weaknesses in the cash receipts function, including the use of common cash drawers, inconsistent use of duplicate receipts, inadequate segregation of duties, and unconfirmed cash counts. As a result, $6,967 in revenue from fines was unaccounted for over a two-year period, and Library officials cannot be assured that moneys are properly collected, recorded, and deposited. Niagara Falls Public Library[complete audit - pdf]

Internal Controls
Based on limited procedures, it appears that the district has made significant progress in implementing corrective action. Of the 18 audit recommendations, 14 recommendations were fully implemented, two recommendations were partially implemented and two recommendations were not implemented. For example, in response to our audit report, the Board indicated that the District would update the cash management policy to include the requirement that all cash be deposited within 48 hours of receipt in the Business Office. While we found that the cash is being deposited within 48 hours, District officials could not provide us with evidence that the Board had formally updated the cash management policy. Brentwood Union Free School District[complete audit - pdf] | [2006 audit report - pdf]

Internal Controls Over Credit Card Purchases
Based on limited procedures, it appears that the District has made considerable progress in implementing corrective action. We found that all four recommendations were fully implemented. For example, the Board's claims auditor policy has been updated to require the claims auditor to monitor credit card purchases and submit a report of irregular transactions to the Board. Brockport Central School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Electronic Equipment Inventories and Employee Reimbursements
Based on those procedures, it appears that the School District has made progress in implementing our recommendations. Of the six audit recommendations, three recommendations were fully implemented, one recommendation was partially implemented, and two recommendations were not implemented. For example, the Board adopted a comprehensive inventory policy on November 12, 2009. The policy includes provisions related to the assignment of duties, requirements for the maintenance of records and procedures for the inventory of equipment. The policy also requires that the school Business Official arrange for an annual inventory of equipment. Canajoharie Central School District[complete audit - pdf] | [2006 audit report - pdf]

Internal Controls Over Financial Operations
Based on our limited procedures, it appears that the District has made considerable progress in implementing our recommendations. Of the nine audit recommendations, seven recommendations were fully implemented and two recommendations were not implemented. For example, the District has taken steps to tighten controls in the Purchasing Department. All district employees involved in procurement have received the District's procurement policy and regulations. The purchasing agent reviews all orders and ensures any orders over $500 have a valid contract attached. Commack Union Free School District[complete audit - pdf] | [2007 audit report - pdf]

Financial Condition and Internal Controls Over Financial Operations
Based on our limited procedures, it appears that the District has implemented all 16 of the audit recommendations. For example, the District developed job descriptions with required qualifications for the positions of Assistant Superintendent for Business and District Treasurer, and hired qualified individuals to hold these positions. In March 2005, the Board appointed a Certified Public Accountant (CPA) as District Treasurer. Prior to his appointment, this individual had experience as treasurer at other school districts. In June 2006, the Board appointed an Interim Assistant Superintendent for Business who had over 26 years of prior school business administration experience. The Interim Assistant Superintendent for Business trained and mentored the current Assistant Superintendent for Business from June 2006 to June 2009 to ensure that he was properly trained to take over the position. Hauppauge Union Free School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Selected Financial and Capital Project Activities
Based on our limited procedures, it appears that the District has made substantial progress in taking corrective action. Of the eight audit recommendations, five recommendations were fully implemented, one recommendation was partially implemented, and one recommendation was not implemented. The remaining recommendation was not applicable under the present circumstances. For example, the District hired a new accountant whose duties are to account for capital projects, separating this function from the Treasurer's immediate control. The new distribution of responsibilities adequately mitigates the risks related to the Treasurer's previous role in performing incompatible duties. Haverstraw-Stony Point Central School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls
Based on our limited procedures, it appears that the School District has made considerable progress in implementing our recommendations. Of the 12 audit recommendations, 10 recommendations were fully implemented, and two recommendations were partially implemented. For example, the District took steps to properly segregate duties in the Treasurer's office and to provide for appropriate management oversight. In addition, bank reconciliations and wire transfers are approved by the Assistant Superintendent for Business. Finally, the Treasurer is now in control of her signature disk, which was previously in the possession of Nassau BOCES. Jericho Union Free School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Selected Financial Activities
Based on our limited procedures, it appears that the District has made considerable progress on the implementation of our recommendations. Of the eight audit recommendations, four recommendations were fully implemented, and four recommendations were partially implemented. For example, the duties of the Treasurer have either been segregated or compensating controls have been implemented. The Superintendent's secretary now keeps a mail log of all incoming checks before they are given to the Treasurer for deposit. The account clerk now performs the bank reconciliations and the Superintendent reviews and signs them. The journal entries are now printed and signed by the Superintendent as evidence of his review and authorization. Margaretville Central School District[complete audit - pdf] | [2008 audit report - pdf]

Internal Controls Over Payroll and Selected Financial Activities
Based on our limited procedures, it appears that the District has made considerable progress in implementing our recommendations. Of the 14 audit recommendations, 11 recommendations were fully implemented, one recommendation was partially implemented, one recommendation was not implemented, and one recommendation was no longer applicable. For example, at the time of our review, the Board was in the process of developing an overtime policy. District officials have developed procedures for overtime payments. We compared a six-month period from July 2007 to December 2007 to the six-month period of July 2008 to December 2008, during which the District reduced overtime by almost 134 hours for a cost savings of approximately $13,500. Nanuet Union Free School District[complete audit - pdf] | [2007 audit report - pdf]

Safeguarding District Assets
Based on our limited procedures, we found that District officials have taken no corrective action. Our audit recommendations were provided to help District officials monitor District finances and protect taxpayer dollars. However, none of the seven audit recommendations were implemented. For example, although the Board received monthly budget status reports and budget transfer reports, the Board did not ensure compliance with its budget transfer policy. We reviewed these reports for the months of January 2007, October 2007 and March 2009 and found 61 budget transfers totaling $167,207. Of the 61 transfers, 39 transfers totaling $116,680 (70 percent) occurred after a purchase was made. In addition, we found 56 accounts totaling $1,256,432 had a negative balance and no corresponding budget transfer. Therefore, the Board's procurement and budget transfer policies are still not being followed. Penn Yan Central School District[complete audit - pdf] | [2006 audit report - pdf]

Financial Condition and Internal Controls Over Selected Financial Activities
Based on our limited procedures, it appears that the District has made progress in implementing corrective actions for the 17 audit recommendations contained in our report. Of the 17 audit recommendations, 10 recommendations were fully implemented, five recommendations were partially implemented, and two recommendations were not implemented. We compared the projections of unreserved fund balance at the end of the fiscal years 2007-08 and 2008-09 against the actual unreserved fund balance at June 30, 2008 (audited) and June 30, 2009 (unaudited) and found that the Assistant Superintendent for Business made conservative projections that resulted in realistic estimates of unreserved fund balance at the end of these fiscal years. Seaford Union Free School District[complete audit - pdf] | [2006 audit report - pdf]

Internal Controls Over Financial Operations
Based on our limited procedures, it appears that the District has made progress in implementing our recommendations. Of the eight audit recommendations, four recommendations were fully implemented, and four recommendations were partially implemented. For example, the District has developed a disaster recovery plan and implemented policies and procedures to strengthen internal controls for off-site computer data storage. The policy was adopted by the Board in October 2009. Sewanhaka Central High School District[complete audit - pdf] | [2007 audit report - pdf]

Internal Controls Over Selected Financial Operations
Based on our limited procedures, it appears that the District has made some progress in implementing our recommendations. Of the 22 audit recommendations, nine recommendations were implemented, five recommendations were partially implemented, four recommendations were not implemented, and four recommendations were no longer applicable. The Superintendent stated, and Board members confirmed, that the Board's policy committee is reviewing policies and is in the process of updating the entire Board Policy Book in consultation with the District's Legal Counsel. We found that the Board has adopted several formal policies, including those that address the claims auditor's duties and how to identify fraud, abuse and waste. However, the Board has not developed formal policies and procedures regarding grant records and activities, fringe benefits, payroll, leave time records, Treasurer's office, and information security. Valhalla Union Free School District[complete audit - pdf] | [2008 audit report - pdf]

Internal Controls Over Selected Financial Activities and Computer Data
Based on our limited procedures, it appears that the District has made significant progress implementing our recommendations. Of the seven audit recommendations, five recommendations were implemented, and two recommendations were not implemented. For example, District management still believes that the overpayments did not occur and that based on the memorandum of understanding (MOU) and the school attorney's review, they should not have to recover any overpayments. We disagree with the payouts for unused benefits and the MOU. In addition, the District still uses an employee of the Broome Tioga BOCES Central Business Office for claims audit services. This is inappropriate and contrary to the SED guidance, because the District has material and significant contract payments to the BOCES. Vestal Central School District[complete audit - pdf] | [2008 audit report - pdf]

Computer Equipment: Energy Conservation and Cost Savings
Based on our limited procedures, we found that the district has implemented all three of our recommendations. The District has enabled conservation settings on computers and is tracking the usage. The District also uses computer software to track each networked computer and report energy savings for each machine. The report that is generated by this software is detailed enough to allow staff to test specific machines, as it includes the computer equipment name and IP address, and to see that each is set to conserve energy when not in use. District officials have taken measures to conserve electricity usage and in doing so have improved their impact on the environment. Vestal Central School District[complete audit - pdf] | [2008 audit report - pdf]

Internal Controls Over Financial Operations
Based on our limited procedures, we determined that the District has made progress in implementing our recommendations. Of the 12 audit recommendations, eight recommendations were fully implemented, two recommendations were partially implemented and one recommendation was not implemented. In addition, one recommendation is no longer relevant because the District redesigned its cash handling procedures. For example, the Business Administrator provided us with written cash receipt and disbursement procedures for the Extra-Curricular Activity (ECA) Fund. The procedures adequately provide for oversight of the ECA Treasurer's work, including having the Business Administrator sign ECA checks. Warsaw Central School District[complete audit - pdf] | [2006 audit report - pdf]

Financial Operations
BOCES officials did not ensure that all moneys due were received, recorded and deposited because the internal controls over cash receipts were weak to non-existent. For example, cash receipt duties were not segregated, receipts were not always issued, and detailed records were not retained for credit card payments. As a result, BOCES officials during November 2008 could not account for $3,800 paid by students. In addition, BOCES officials could not verify that credit card refunds totaling $12,000 were for the correct amounts or paid to the correct individuals, nor could they verify that career and technical education (CTE) materials and supplies totaling $85,898 were purchased for instructional purposes, or if the moneys received for CTE services were properly charged and deposited. In addition, the purchasing agent and department heads did not ensure that purchases were authorized, for appropriate purposes, or made at the lowest cost. The Business Office Controller and Treasurer did not ensure that disbursements were authorized and for appropriate purposes. Finally, the Board did not ensure that fund balances and reserve balances were necessary and used for appropriate purposes. As a result, BOCES has accumulated reserve funds totaling $5.5 million for employee benefits and unemployment insurance, balances which significantly exceed amounts reasonably needed to meet related liabilities. Broome-Delaware-Tioga BOCES[complete audit - pdf]

Management Oversight and Controls Over Selected Financial Operations
The Board has failed to adequately oversee the BOCES operations, setting a poor "tone at the top" that allowed numerous deficiencies in BOCES operations to develop and escalate. Three BOCES Board members did not publicly disclose their potential interest, as required by Education Law, in BOCES' property lease with the Monroe #1 Educational Foundation. BOCES leased a bus garage owned by the BOCES head bus mechanic, who also controlled BOCES parts inventory and equipment, supervised BOCES mechanics and ran a private used car dealership out of the facility. The Board also failed to perform sufficient market value analyses prior to entering into leases on behalf of BOCES, as required by Education Law, or to adopt resolutions explaining why such leases are in the best financial interest of BOCES. Finally, BOCES officials also did not develop payroll policies or procedures for compensatory time, employee time sheets, or the monitoring of off-site work. Monroe #1 BOCES[complete audit - pdf]

Internal Controls Over Selected Financial Activities
Ulster BOCES generally complied with the requirement to return surpluses to the component districts. However, BOCES officials withheld amounts erroneously accrued and accumulated in the general fund as Other Post-Employment Benefits (OPEB) Payable (approximately $12.8 million) from refunds due to the component districts. BOCES' internal controls over payroll also need to be improved. We also found that internal controls over cash receipts collections in the Business Office were not properly designed or operating effectively. Our audit also disclosed that BOCES entered into professional services contracts with a Contractor that also identifies the wife of a BOCES official as the consultant for the Contractor. The BOCES official did not disclose his interest in the professional services contracts in writing to the Board as required, and there is no evidence that the Board approved the contracts. Finally, BOCES officials have not established adequate internal controls to effectively safeguard BOCES' computer systems and data. Ulster County Board of Cooperative Educational Services[complete audit - pdf]