[read complete report – pdf]

Audit Objective

Determine whether the Sag Harbor Union Free School District’s (District) claims auditor ensured claims were appropriate, supported, audited and approved before payment.

Key Findings

Although all claims were appropriate, audited and approved before payment, the claims auditor did not ensure claims were supported. We reviewed 208 invoices totaling $1.3 million to determine whether an adequate claims audit was performed. The claims auditor approved:

• 122 invoices (59 percent) totaling $359,131 which lacked adequate supporting documentation.
• Eight invoices totaling $4,582 which included confirming POs, sales tax charges and lacked receipt acknowledgments but never reported these to the Board.

Key Recommendations

• Perform a thorough, deliberate and independent audit in accordance with the Board policies.
• Ensure purchases are made in compliance with District policies and applicable contracts and/or bids.
• Report all claims audit findings to the Board.

District officials generally agreed with our recommendations and indicated they plan to initiate corrective action.