Green Island Union Free School District - Separation Payments (2019M-55)

Issued Date
June 14, 2019

[read complete report - pdf]

Audit Objective

Determine whether separation payments were calculated correctly and supported by employee contracts.

Key Findings

  • The former Business Manager’s separation payment was inadequately supported, and he was overpaid by $16,700.
  • The District paid the former Business Manager’s separation payment totaling $84,063 over a period of time, including $64,063 before his effective retirement date.
  • The District inappropriately provided an advance of $15,000 of separation pay to the former Business Manager.

Key Recommendations

  • Provide an independent review and approval of separation payments.
  • Discuss the separation overpayment to the former Business Manager with the District’s legal counsel and take appropriate action to recover funds.
  • Discontinue paying separation payments prior to the employee’s resignation/retirement date.

Except as specified in Appendix A, District officials generally agreed with our recommendations and indicated they planned to take corrective action. Appendix B includes our comment on an issue raised in the District’s response letter.