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June 8, 2010



DiNapoli’s Office Completes School Audits

New York State Comptroller Thomas P. DiNapoli today announced his office completed audits of: Enlarged City School District of Middletown – Internal Controls Over Project Change Orders, and Port Jervis City School District – Internal Controls Over Selected Activities.

“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.”

Enlarged City School District of Middletown – Internal Controls Over Project Change Orders
DiNapoli’s auditors found that internal controls over capital project change orders did not adequately safeguard district assets. Because the school board did not develop a comprehensive change order policy, authorize change directives or designate an official to authorize change directives on its behalf, and because the board approved approximately half of the change orders after work was completed, the district had limited assurance that the $1.8 million expended on change orders during Phase I of the district’s Capital Improvement Project was within the scope and necessary.

Port Jervis City School District – Internal Controls Over Selected Activities
Although the district had significant operating surpluses during each of the three fiscal years ended June 30, 2009, the amount of unappropriated, unreserved fund balance retained at year-end averaged $5.5 million during that period. In 2008-09 the district retained approximately $9 million, or almost 15 percent of the ensuing year’s budget – nearly four times the amount allowed by law. DiNapoli’s auditors also found that district officials did not adequately segregate duties within the payroll process. The payroll clerk has the ability to create employee records, update employee information, input salary information, set up withholdings and direct deposits, process the payroll, and print and distribute payroll checks.

If you have any questions or would like a comment from the Comptroller’s office regarding the audits above, please call the Press Office at 518-474-4015 or send an email.

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