November 5, 2010
DiNapoli's Office Completes Audit of the Rhinebeck Central School District
New York State Comptroller Thomas P. DiNapoli today announced his office completed the audit: Rhinebeck Central School District – Internal Controls Over Selected Financial Operations.
“As Comptroller, I’m committed to using the audit process to make sure state and local governments run as efficiently as possible,” DiNapoli said. “These audits are tools governments should use to better protect taxpayer dollars. The Rhinebeck Central School District failed to implement strong control over its information technology, payroll and electronic fund transfers, which creates unnecessary risks for the district. The district must do a better job of protecting districts assets and taxpayer dollars.”
DiNapoli’s auditors found that the board failed to adopt formal control policies related to electronic funds transfers. The treasurer disbursed $58.5 million of electronic funds transfers during the audit period. These transfers included both online transfers between accounts at the same bank and wire transfers of monies from one bank to another. The treasurer performed these transactions without prior approval, timely review by someone independent of the transaction or a confirmation from bank personnel.
DiNapoli’s auditors also noted that internal controls over the district’s payroll processing were not appropriately designed because the payroll clerk performs virtually every phase of the payroll process, and the board has not exercised appropriate oversight.
Auditors from DiNapoli’s office also found that the district did not have adequate internal controls in place for information technology. Specifically, the district did not have adequate policies and procedures for the assignment of user rights and failed to develop a disaster recovery plan.
For a full copy of the audit, Click Here.
If you have any questions, or would like a comment from the Comptroller’s press office regarding this audit, please call 518-474-4015, or send an email to firstname.lastname@example.org.