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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

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

Released: June 7, 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.

Background

The Newburgh Enlarged City School District (District) is located in the City of Newburgh in Orange County. The Board of Education (Board) is responsible for managing the District’s operations. The Superintendent of Schools is responsible for the District’s day-to-day management, budget development and administration. The Assistant Superintendent of Finance (Assistant Superintendent) began District employment in August 2016 and the Executive Director of Information Technology (IT Director) began District employment in July 2016.

Quick Facts
Employees2,160
Enrollment10,830
2015-16 Expenditures$239.2 Million
2016-17 Appropriations$264.3 Million

Audit Period

July 1, 2015 – April 18, 2017

We extended our audit period back to July 1, 2011 to review fund balance trends and reserve funding.


Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.ny.gov
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236