Newburgh Enlarged City School District - Financial Management and Information Technology (2017M-169)

Issued Date
June 07, 2019

[read complete report - pdf]

Audit Objective

Determine whether the Board effectively managed the District’s financial condition.

Determine whether the District’s information technology (IT) system was adequately secured and protected against unauthorized use, access and loss.

Key Findings

  • Appropriations were overestimated resulting in an operating surplus of $18.8 million in 2015-16.
  • Reserves were not used as intended and were overfunded by $7.3 million as of June 30, 2016.
  • IT Director did not adequately monitor the electronic devices inventory resulting in items not being recorded.

In addition, sensitive IT control weaknesses were communicated confidentially to District officials.

Key Recommendations

  • Adopt budgets with reasonably estimated appropriations and use excess fund balance and reserves to benefit District residents in accordance with statutory requirements.
  • Review all reserves and determine whether the balances are necessary, reasonable and compliant with statutory requirements.
  • Ensure all electronic and digital equipment are inventoried and devices purchased are needed.
  • Address confidentially communicated IT recommendations.

Except as specified in Appendix A, District officials generally agreed with our recommendations. Appendix B includes our comments on the issues raised in the District’s response.