Fonda-Fultonville Central School District – Payroll (2015M-118)

Issued Date
September 04, 2015

Purpose of Audit

The purpose of our audit was to examine the District’s payroll process for the period July 1, 2013 through January 31, 2015.


The Fonda-Fultonville Central School District is located in the Towns of Amsterdam, Charleston, Florida, Glen, Mohawk, Palatine and Root in Montgomery County; the Towns of Carlisle and Esperance in Schoharie County; and the City of Johnstown and the Town of Johnstown in Fulton County. The District, which operates three schools with approximately 1,400 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2014-15 fiscal year totaled approximately $24.9 million.

Key Findings

  • District management did not properly segregate the Deputy’s duties or implement adequate compensating controls, such as providing additional oversight.
  • The Treasurer did not verify that the reconciliations performed by the Deputy were accurate by tracing them to source records.
  • District officials did not review the direct deposit upload document or compare this document with the certified payrolls.

Key Recommendations

  • Segregate the Deputy’s payroll duties so that this individual does not control all aspects of payroll transactions.
  • Routinely generate and review payroll change reports to promptly identify, investigate and resolve any payroll discrepancies before the payrolls are submitted for certification.
  • Review the direct deposit upload document each pay period and forward it to the Superintendent for certification.