DiNapoli's Office Completes School Audits
New York State Comptroller Thomas P. DiNapoli today announced his office completed audits of the Auburn Enlarged City School District, the Malone Central School District, the Schalmont Central School District, the Waterloo Central School District and the Beacon City School District.
"My office's audits of school districts 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."
Auburn Enlarged City School District – Internal Controls Over Medicaid Reimbursement (Cayuga County)
Auditors found the district did not process all of the claims for 26 Medicaid-eligible students with Individual Education Plans (IEPs), identify the Medicaid-eligibility status of 12 Medicaid-eligible students with IEPs or submit claims for services they received. The district also did not identify the potential Medicaid eligibility status of another six students with IEPs who received free school lunches. As a result, the district did not claim $25,751 for IEP-related services provided to these students. By extending the error rate identified in three samples, auditors estimate the district did not claim $295,660 (25 percent) in potential Medicaid reimbursements during the 2008-09 year.
Malone Central School District – Internal Controls Over Payments to Substitute Employees (Franklin County)
The district generally followed the policies and procedures for paying substitute employees and paid the proper amounts. However, there was one instance in which the district purposely withheld $4,100 in wages from a retired teacher who earned substitute teacher wages in 2009 to avoid exceeding the threshold established by Retirement and Social Security Law.
Schalmont Central School District – Internal Controls Over Cash Receipts and Disbursements (Schenectady, Albany and Montgomery counties)
The board has not adopted sufficient formal policies and procedures that address the collection and deposit of all district moneys, online banking, and electronic and wire transfers. Consequently, district personnel did not issue pre-numbered receipts, as required, and did not deposit 20 of the 40 receipts, totaling $8,900, in a timely manner. In addition, the district did not have an online banking agreement with one bank that processes its electronic transfers, and its online banking agreement with the other bank was incomplete and contained deficiencies. Finally, auditors found no requirement for secondary or independent authorization for intra-bank transfers, and no written confirmations for four of the five inter-bank wire transfers that we tested.
Waterloo Central School District - Electronic Document Distribution and Purchasing (Seneca County)
The district could achieve cost savings and reduce its impact on the environment by distributing more information, such as the annual school calendar, staff directory, school newsletters and student progress reports electronically. For example, the district could have saved $18,500 by providing its 2009-10 calendar information in an electronic format. In total, auditors estimated that the district could save $24,000 annually and be more environmentally friendly by distributing certain information in an electronic format. In addition, the board and district officials did not effectively monitor district purchasing.
Beacon City School District – Budget Review (Dutchess County)
Based on the results of a review, auditors found that the significant revenue and expenditure projections in the preliminary budget are reasonable.
To view the audits above, visit: www.osc.state.ny.us/localgov/audits/index.htm. If you have any questions or would like a comment from the Comptroller's office regarding the audits above, please call the Press Office at 518-474-4015 or email firstname.lastname@example.org.