[read complete report – pdf]

Audit Objective

Determine whether the William Floyd Union Free School District’s (District) Board of Education (Board) and District officials ensured check signings and online banking transactions were appropriate and secure.

Key Findings

While the bank transactions we reviewed were appropriate, the Board and District officials did not ensure check signings and banking transactions were secure.

• The District Treasurer (Treasurer) allowed employees to affix her signature to checks without overseeing the check signing process; of the 364 checks reviewed, 353 checks totaling $6.7 million were printed and signed when the Treasurer was not physically present at the District.
• The Board did not designate an alternate signatory in the Treasurer’s absence.
• The Board did not enter into a banking agreement with a bank that maintains six District accounts.
• District officials did not conduct online banking transactions in the most secure manner through a wired connection.

Key Recommendations

• Ensure the Treasurer maintains control of her electronic check signature at all times.
• Designate a Deputy Treasurer to sign checks and authorize electronic/wire transfers in the Treasurer’s absence.
• Conduct online banking using a wired connection.

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