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August 04, 2011

 

DiNapoli's Office Completes School Audits

New York State Comptroller Thomas P. DiNapoli today announced his office completed the audits of the Central Islip Union Free School District, Eden Central School District and Fonda-Fultonville Central 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.”

Central Islip Union Free School District - Medicaid Revenue (Suffolk County)
Medicaid-eligible claims for at least 10 students were not submitted for reimbursement because district officials were not aware of the services that these students had received. District officials did not submit claims for students they knew received IEP-related services, case reviews, or transportation services due to a lack of documentation. In other cases, the district had documentation but did not submit it, or the services were not provided under the direction of a licensed therapist or speech pathologist. As a result, Medicaid claims for reimbursement for 50 students totaling $301,008 were not submitted. If these claims had been submitted and approved, the district and New York State would have received 25 percent of the cost totaling $75,252 each.

Eden Central School District - Financial Condition and Health Insurance Benefits (Erie County)
Over the past three years, district officials used non-transparent practices to reduce fund balance levels to within statutory limits rather than using surplus monies to reduce the tax levy as required by statute. District officials did not disclose their intent during the budget process to use $1.5 million to fund various reserves. Instead they simply transferred excess fund balance at year end. Further, for the fiscal years 2006-07 through 2009-10, district officials appropriated more than $4.6 million of fund balance to finance operations. However, because the district consistently experienced operating surpluses over this period, the appropriated fund balance was not actually used to finance operations. Significant procedure and control deficiencies over the monitoring and reviewing of health insurance benefits were also identified.

Fonda-Fultonville Central School District - Online Banking (Montgomery County)
The board did not adopt an online banking policy and did not develop procedures for online banking activities. In addition, online banking duties were not properly segregated and account accessibility was not properly controlled. The treasurer and deputy treasurer did not use proper procedures when accessing and exiting online banking sessions. Finally, the treasurer and deputy treasurer did not receive appropriate online banking training and access to the district's bank accounts has not been monitored.


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