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, Michelangelo Middle School: Management of General School Funds (2010-N-8)
Auditors found mismanagement and significant deficiencies over the receipt, disbursement and recordkeeping of General School Funds (GSF). School officials did not maintain complete or accurate accounting records to document GSF activity and required approval processes were routinely ignored. There were no reliable records of the amount of funds that should be on deposit. For the 2008-09 through 2009-10 school years, the school treasurer recorded receipts for $128,835 in the accounting records, but only $126,806 was deposited. The treasurer was unable to explain the discrepancy and auditors have recommended that officials investigate this matter. Auditors examined support for all 232 payments made between July 2008 and August 2010, and determined $13,638 was paid for items that were not student-related or that should have been paid with the school's regular tax levy funds.
New York City Department of Education, Dr. Daniel Hale Williams Middle School: Management of General School Funds (2010-N-9)
For the 2008-09 and 2009-10 school years, $146,629 in revenue and $154,441 of disbursements flowed through Daniel Hale's General School Funds (GSF) account. On June 30, 2010, the balance in the account was $65,173. Auditors identified $8,529 in GSF expenditures used to pay for items that were not related to student activities. Regular tax levy funds should have been used to pay for $7,921 of these expenditures. These costs included curriculum supplies, postage and replacement seats for the cafeteria. The remaining $608 was spent on items that were not directly related to the students, including gift cards, staff food and discount club memberships for the principal and his spouse. Daniel Hale officials also did not report accurate GSF account balances, resulting in inaccurate reporting of cash and liabilities.
New York City Department of Education, William Alexander Middle School: Management of General School Funds (2010-N-10)
Between July 1, 2008 and June 30, 2010, William Alexander officials deposited $1,111,695 in the school's General School Funds (GSF) account and paid out $1,043,586. School officials used GSF funds to make 99 payments totaling $58,825, unrelated to student activities. The school's Parent Teacher Association reimbursed $42,555 of these payments. Of the remaining $16,270, $4,614 directly benefited school officials and staff, including cost for staff lunches and holiday parties, gift cards for teachers and a computer that appears to have been used by the principal for personal purposes. The other $11,656 paid for items that should have been funded through the school's normal budget and tax levy funds. Three teachers each cashed $1,000 checks to pay gratuities for student trips and events. However, vendor invoices for some of these events show that gratuities were already included. Since the teachers' payments were made in cash with no receipts, there is no assurance the funds were actually used as reported. Internal controls over cash receipts, disbursements and recordkeeping practices are generally inadequate, evidencing a poor control environment established by school officials. In many cases required forms were not used, journal entries were not made, and supporting documentation was not retained. As a result, auditors cannot be certain how much money students actually raised, or whether it was all properly deposited.