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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Green Island Union Free School District – Claims Processing (2012M-72)


Released: August 31, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the District's internal controls over claims processing for the period July 1, 2010, to January 31, 2012.

Background

The Green Island Union Free School District is located in the Village of Green Island, Albany County. The District is governed by the Board of Education, which comprises five elected members. The District's 2010-11 operating expenditures totaled $6,523,974 for the general fund and $327,898 for special aid fund.

Key Finding

  • During our prior audit of the District, we found weaknesses in controls related to the processing of claims and we specifically recommended that the District perform a thorough audit of all claims and ensure payments are made only after the claims are audited. On September 1, 2007, the Board did adopt policies and procedures for claims audit, which included the Board's stated intention to appoint a claims auditor. During our audit period, the Board did not appoint a claims auditor until September 1, 2011. The Board was, therefore, responsible for performing a proper audit of claims from July 1, 2010 through August 31, 2011. However, the Board did not do so, either before or after claims were paid. Further, although the claims auditor does audit claims, the review takes place after the Treasurer has paid the vendors. District officials informed us that all claim payments are made prior to a review by the claims auditor.

Key Recommendation

  • Ensure that all claims, other than those exceptions allowed by Education Law, are audited and approved by the claims auditor before the Treasurer pays them.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236