Syosset
School Audit Finds Weak Financial Management, But No Wrongdoings
State Comptroller auditors found poor financial controls at the Syosset
Central School District, New York State Comptroller Alan G. Hevesi
said today, but did not find any spending that raised concerns of wrongdoing.
The audit released today examined administrative expenses for the
school district from July 1, 2002 through August 31, 2004. Auditors
found that the district lacked written policies and receipts for spending
on travel and meals and identified instances where managers took personal
time not granted under employment contracts, but also noted that the
district had implemented some new policies. This is the ninth audit
of Long Island school districts that Comptroller Hevesi’s office
has completed.
“Schools must have clear, written policies in place to control
costs and ensure that public dollars are being used for legitimate
school business,” Hevesi said. “I commend board members
for improving internal controls and drafting new policies for administrative
expenses, but I also urge them to be mindful of their ongoing oversight
responsibilities.”
Findings included:
- The district allowed the superintendent, deputy superintendent
and director of business to take personal time that was not part
of their employment contract. While no compensation was given to
the managers for the time off, auditors noted that these officials
may have used personal time rather than vacation time and then later
converted vacation time into cash payments. The combined cash value
of the personal time taken was $23,700. An attorney for the district
claimed that it was a “long-standing, open and widely-known practice,” even
though it was never formally approved by the board of education.
- The deputy superintendent, director of business operations and
elementary curriculum coordinator submitted claims for mileage reimbursements
for more than 49,000 miles that totaled more than $18,000. The
claims did not show the dates, locations or purposes for the trips.
Instead, these particular managers were allowed to submit claims
that contained the total number of miles driven, typically, for a
month.
- The district spent about $125,000 on meals and refreshments at
983 meetings and events, including $9,530 for 52 dinner meetings
for managers. No supporting documentation was provided to indicate
why these expenses should be paid by the district, nor did the district
have a policy governing spending on meals.
- $36,000 was spent on approximately 55 cell phones. Auditors found
that the district did not have a written policy for cell phone
use, monitor overage charges or seek reimbursement for personal calls.
- The district spent $18,000 on travel and conference expenses for
managers but did not require staff to submit itemized receipts
so the district could verify the expenses. The district also had
no limit for what officials could spend on meals or lodging.
- $5,600 was spent on three credit cards assigned to district personnel,
but no written rules existed on how officials should use those
credit cards.
- In recent months, the district cancelled its credit card and requested
new and detailed proposals for internal claims and independent audit
services. In addition, the district adopted policies that require
travelers to submit all receipts, but did not establish reasonable
maximum limits for lodging and meal costs.
Auditors recommended that the district ensure that all benefits are
clearly noted in employment contracts. Auditors also recommended that
the board require all managers to submit detailed monthly mileage statements,
limit what can be spent on meals and lodging costs, and require proper
documentation for all expense claims.
In response to the audit, Superintendent of Schools Carole G. Hankin
indicated that many of the recommendations have been implemented and
that the district will assist the district’s new internal auditor.
Her full response is included in the audit, as well the auditors’ responses
to five taxpayer concerns that were investigated during the audit.
The Syosset School District has approximately 6,600 students, ten
education buildings and about 1,450 employees. Its 2004-05 operating
budget totals about $138 million.
Click here for a copy of the audit.
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Internet: http://www.osc.state.ny.us
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