FOR RELEASE:

Audit Finds Good Financial Practices at
Deposit Central School District

A Comptroller’s audit of the Deposit Central School District found good financial management practices, State Comptroller Alan G. Hevesi’s office said today.

The audit of the Deposit School District, which covers the Towns of Deposit, Masonville and Tompkins in Delaware County and the Town of Sanford in Broome County, is part of a statewide effort by the State Comptroller’s office to improve oversight and fiscal practices at schools. The initiative began in response to widespread theft and other questionable actions that came to light in several school districts on Long Island in 2004.

“The strong financial management and key safeguards instituted by the Deposit School District demonstrate its commitment to ensuring that money is being spent responsibly and for its intended purpose,” said Hevesi. “I commend the hardworking professionals at the district for their careful stewardship of taxpayer resources.”

The audit examined internal controls and segregation of duties over non-payroll related cash disbursements from July 1, 2004 through January 4, 2006. Financial operations are run by the district’s central business office and the Broome-Tioga Board of Cooperative Educational Services (BOCES).

During the audit period, 3,579 cash disbursement transactions were made totaling approximately $9.2 million. The audit, which examined 184 cash disbursements, or five percent of processed claims, found that claims were properly authorized, documented and paid in accordance with the district’s established process and policies.

In addition, all oversight duties were given to separate employees to ensure that no one person controlled all aspects of the financial transactions, which is critical to help detect errors and prevent theft. For example, goods and services received by the district are checked off and initialed by an employee who then forwards the purchase order to the business office and BOCES for payment processing. The accounts payable clerk then matches the invoice to the signed purchase order and sends them to the internal claims auditor. The claims auditor reviews the package for accuracy and legitimacy and authorizes payment.

Currently, more than 170 school districts around the state are being audited. Other school districts in Broome and Delaware Counties currently being audited are Andes, Charlotte Valley, Chenango Forks, Hancock, Harpursville and Whitney Point. The Comptroller’s office will audit all of the state’s 821 school districts, BOCES and charter schools during the next five years.

The Deposit School District has 683 students and 201 employees. It spent $12,884,524 in the 2004-05 fiscal year.

Click here for a copy of the audit.

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