Comptroller DiNapoli Releases Audits
New York State Comptroller Thomas P. DiNapoli announced today the following audits have been issued:
New York City Department of Education, Herbert H. Lehman High School: Management of General School Funds (2010-N-11)
Auditors determined that $26,064 in general school funds (GSF) were used to pay for items that were not student related or should have been paid for with the school's regular tax levy funds. Examples include $9,450 for music equipment, $9,061 for administrative and other supplies, $956 for a camera, and $660 to reimburse students for personal items that were lost or damaged at school. Lehman officials did not establish an adequate system of accountability over the operations of the school store, the revenues from which were deposited in the GSF account. There were no inventory records and no system to record sales. Daily sales were routinely calculated simply by counting the cash on hand at the end of the day. In 2004, the school's former principal made what appears to be an improper deal with a vendor to forgive $8,046 in charges for photography services at the school prom in exchange for the exclusive 10-year right to similar business. Current school officials had not lived up to this commitment and the vendor is now seeking payment.
Division of the Lottery, Administration of Video Lottery Terminal Revenues (2010-S-56)
Video Lottery Terminal (VLT) revenues are adequately controlled, accurately reported, and distributed in compliance with the enabling legislation. Marketing and capital project funds retained by VLT Facilities were spent appropriately, with the exception of $13,917 in unsupported marketing expenditures at Batavia. Auditors were unable to determine whether the VLT revenues used to enhance racetrack purses have aided racetrack attendance and handle.
New York City Department of Education, James Madison High School: Management of General School Funds (2011-N-1)
Auditors examined 89 disbursements totaling $228,964 and identified $6,856 in GSF funds used to pay for items that were not student-related or should have been paid for with regular tax levy funds. Of this amount, $3,251 in salary loans made to teachers has since been repaid. James Madison officials did not establish an adequate system of accountability over the operations of the school's gym store and its faculty café. There were no inventory records and no reliable system to record sales at either location. Our tests showed manual records from the gym store conflicted with the treasurer's records, evidencing missing receipts, duplications and improperly voided documents. As of February 22, 2011, auditors identified 25 GSF checks totaling $5,836 that had been outstanding for periods ranging from 239 to 509 days. Procedures call for uncashed checks to be investigated after 60 days and cancelled after 90 days. School officials told auditors they were unaware of the requirement to follow up on outstanding payments.
Tuition Assistance Program - Higher Education Services Corporation, SBI Campus (2011-T-1)
SBI was overpaid $538,568 because school officials incorrectly certified students as eligible for TAP awards. Incorrect certifications include eighteen students who received awards but did not meet the requirements for maintaining good academic standing. Eleven students did not meet the requirements to receive accelerated TAP payments. Four students did not meet the requirements for matriculation. Three students did not meet the requirements for full-time attendance.