DiNapoli's Office Completes School Audits
New York State Comptroller Thomas P. DiNapoli today announced his office completed audits of Honeoye Central School District, New Hartford Central School District, Port Washington Union Free School District and South Lewis Central School District.
“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.”
Honeoye Central School District – Internal Controls Over Segregation of Duties and the Computerized Financial System (Ontario and Livingston counties)
Auditors found district officials did not develop policies and procedures to effectively address the duties and responsibilities of the treasurer and the payroll clerk. However, auditors’ tests did not disclose significant exceptions. In addition, the district’s internal controls over the computerized business management system were inadequate to protect district assets and data. District officials did not restrict access in the computer system. In addition, the system does not generate basic reports necessary to monitor financial activity.
New Hartford Central School District – Internal Controls Over Fuel Inventory (Oneida and Herkimer counties)
Auditors found that district officials did not develop written policies and procedures for controlling vehicle fuel inventories. A lack of policies can result in misunderstandings by staff and operations not being performed according to management’s expectations. Although district officials did not maintain perpetual inventory records prior to the start of our audit, they did take corrective action by developing records during our fieldwork and attempting to reconcile the inventory records with the amount of fuel on hand.
Port Washington Union Free School District – Internal Controls Over Selected Financial Operations (Nassau County)
The board did not establish appropriate policies to guide employees’ actions, and at other times, district officials did not implement the policies. For example, three district employees, who were paid a combined total of $101,215 as vendors, did not disclose their interest in contracts with the district, as required by law. The district also did not adopt written policies or establish proper controls over vehicle fuel use. Auditors tested records of fuel deliveries, usage and fuel inventory stick readings and found that 981 gallons of gas were unaccounted for.
South Lewis Central School District – Internal Controls Over District-Operated Vending Machine Receipts (Lewis County)
District managers did not establish adequate internal controls over district-operated vending machine cash receipts. There is not proper oversight of cash handling. Auditors’ testing disclosed that the district-operated vending machines were profitable and no irregularities were identified. However, this does not diminish the need for district management to provide proper oversight of the cash collection and submittal process.
Click here to view the audits above.
If you have any questions or would like a comment from the Comptroller’s office regarding any of the audits above, please call 518-474-4015.