DiNapoli's Office Completes School Audits
New York State Comptroller Thomas P. DiNapoli today announced his office completed audits of Amber Charter School, Canaseraga Central School District, Herkimer-Fulton-Hamilton-Otsego BOCES, Our World Neighbor Charter School, Plainview-Old Bethpage Central School District and Wappingers Central School District.
“My office’s audits of school districts, charter schools and BOCES help schools improve their financial management practices,” DiNapoli said. “These audits are tools for schools to make sure proper policies and procedures are in place to protect taxpayer dollars and provide students with the best possible education.”
Amber Charter School – Financial Management Practices (New York County)
The audit reviewed the adequacy of the internal controls established by school officials over selected areas of financial operations and identified a number of weaknesses in these controls. For example, cash funds were not adequately controlled, contracts were not competitively bid and adequate inventory records were not maintained. The audit also found that a large pay increase may not have been approved by the school’s board of trustees, and some of the individuals hired by the school did not undergo a criminal history record check before beginning their employment. To view this audit, visit: http://osc.state.ny.us/audits/allaudits/093008/07s101.pdf.
Canaseraga Central School District – Internal Controls Over Cafeteria Cash Receipts (Allegany, Livingston and Steuben counties)
District officials have not adopted written policies governing cafeteria cash receipts. The three cafeteria employees shared a common cash drawer and used the same password to access the point-of-sale software at the register. The cafeteria manager counted the cash from meal sales, printed out sales reports identifying cash received, and brought the cash to the treasurer daily. However, the t treasurer counted the cash without the cafeteria manager being present, and did not issue a receipt to the cafeteria manager as evidence of the amount remitted.
Herkimer-Fulton-Hamilton-Otsego Board of Cooperative Education Services – Internal Controls Over Payroll (Fulton, Hamilton, Herkimer and Otsego counties)
Auditors found that payroll duties were not properly segregated. However, at the beginning of the 2007-08 fiscal year, management implemented corrective measures. Segregation of duties problems were eliminated by giving the responsibility for adding new employees and entering employee pay rates to the human resources clerk and the payroll clerk’s computer access rights to perform these tasks were removed. Except for minor deficiencies, which we discussed with BOCES officials, the internal controls over payroll were determined to be adequate after the corrective measures were implemented.
Our World Neighbor Charter School – Financial Management Practices (Queens County)
The audit reviewed the adequacy of the internal controls established by school officials over selected areas of financial operations and identified certain weaknesses in these controls. For example, established procurement procedures were not always followed and adequate inventory records were not maintained. The audit also found that many of the individuals hired by the school did not undergo a criminal history record check before beginning their employment. To view this audit, visit: http://osc.state.ny.us/audits/allaudits/093008/07s56.pdf.
Plainview-Old Bethpage Central School District – Internal Controls Gasoline Credit Accounts and Cellular Telephones (Nassau County)
Auditors found that the district established adequate controls over gasoline credit account usage. The audit also found that the district has been generally proactive in monitoring cellular telephone expenses.
Wappingers Central School District – Internal Controls Over Financial Activities (Dutchess and Putnam counties)
Although controls over cash disbursements were generally adequate, controls over cash receipts need improvement. Policies and procedures were not complete, press-numbered receipts were not always issued, bank deposits were not always completed timely and district officials did not provide adequate oversight of a student activity account. Further, accounting duties were not properly segregated, required certifications on the treasurer’s monthly reports were not completed and bank reconciliations contained errors and inconsistencies. The audit also disclosed that the district does not have a disaster recovery plan to address the recovery of its computerized data and resumption of operations in the event of a disaster.
School District Accountability
In order to improve accountability of the state’s schools, DiNapoli’s office will audit all of New York’s 834 school districts, Board of Cooperative Educational Services (BOCES) and charter schools by 2010. The State Comptroller’s office has completed 400 school audits and approximately 200 audits are currently underway.
Click here to view the audits above.
If you have any questions or would like a comment from the Comptroller’s office regarding any of the audits above, please call Press Office at 518-474-4015.