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February 18, 2009

 

DiNapoli's Office Completes
School and Local Government Audits

New York State Comptroller Thomas P. DiNapoli today announced his office completed audits of Sayville UFSD, Recycled Copy Paper Purchases, Madison-Oneida BOCES Regional Information Center and Wayne-Finger Lakes BOCES Regional Information Center.

“My office’s audits help school districts, BOCES and local governments improve their financial management practices,” DiNapoli said. “These audits are tools for them to make sure proper policies and procedures are in place to protect taxpayer dollars and provide students with the best possible education and citizens with the best possible services.”

Sayville Union Free School District – Employee Benefit Accrued Liability Reserve
The board established the EBALR in February 2005 using $2.1 million of unappropriated fund balance. General Municipal Law authorizes school districts to create an EBALR to make cash payments for the value of accrued but unused sick leave, holiday leave, vacation time, and any other forms of payment for accrued leave time due to employees upon separation. Although district officials paid $356,446 for compensated absences during the 2005-06 fiscal year, these expenses were paid for from the general fund and not from the EBALR. In June 2006, after performing an analysis of the actual liability for compensated absences, district officials added an additional $7.1 million to the reserve. This raised the total to $9.2 million, as of June 30, 2007, which exceeded the $6 million liability for compensated absences. As a result, the EBALR was over funded by as much as $3.2 million. In addition, district officials improperly credited more than $750,000 in net interest earned by the EBALR to the general fund.

Recycled Copy Paper Purchases – City of Binghamton, Broome County, Broome Community College, Broome-Tioga BOCES, Town of Chenango, and Town of Vestal
The six local governments included in this audit did not purchase 100 percent recycled paper but instead purchased 18,256 cases (460 tons) of white non-recycled copy paper and 4,634 cases (116 tons) of 30 percent recycled color copy paper during the audit period. Local officials from all six local governments said they did not purchase recycled paper because it cost more than non-recycled paper. The cost of recycled paper is slightly higher than non-recycled paper. The additional annual cost for the six local governments could be approximately $39,365. Nonetheless, if all six local governments had purchased 100 percent recycled paper instead of non-recycled paper during the audit period, they would have conserved significant environmental resources.

Madison-Oneida BOCES Regional Information Center
Based on inquiries auditors made of the RIC management and a review of policies and procedures during this examination of technology services the RIC provided to component (or cross-contracting) school districts, auditors concluded that as of April 2, 2008, controls were adequately designed.

Wayne-Finger Lakes BOCES Regional Information Center
Based on inquiries auditors made of the RIC management and a review of policies and procedures during our examination of technology services the RIC provided to component (or cross-contracting) school districts, auditors concluded that as of November 18, 2008, controls were adequately designed.

Click here to view the audits above.

If you have any questions or would like a comment from the Comptroller’s office regarding these audits, please call 518-474-4015.


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