November 16, 2010
DiNapoli's Office Completes Audit of the Wellsville Central School District
New York State Comptroller Thomas P. DiNapoli today announced his office completed the audit: Wellsville Central School District – Cost Savings Opportunities and Internal Controls Over Financial Consultant Services.
"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 Wellsville Central School District could realize substantial savings if it provided its monthly newsletter in an electronic format. The district should look into options that can save the district, and its taxpayers, money."
DiNapoli’s auditors found that the district currently contracts with the Cattaraugus Allegany Board of Cooperative Educational Services (BOCES) to compile, print, and mail district newsletters. If the district were to primarily provide its monthly newsletter in electronic format on its webpage, the taxpayers of the district and the state combined could achieve a cost savings over a three-year period in the range of $80,000 to $159,000.
Auditors from DiNapoli’s office also noted that the district currently purchases student accident coverage through an insurance provider. The annual premiums for the fiscal years 2007-08 through 2009-10 totaled $40,233. Based on historical activity, if the district were to self-fund for student accident claims, it could potentially realize cost savings over a three-year period of approximately $29,000.
Lastly, DiNapoli’s auditors found that the district paid a consultant to provide financial consulting services without soliciting proposals from other professionals or entering into a written contract to indicate the scope of services or basis for compensation. The district paid this consultant 18 claims totaling $99,959 for various services.
For a full copy of the audit, see: http://www.osc.state.ny.us/localgov/audits/schools/2010/wellsville.pdf
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 email@example.com.