New York State Comptroller Thomas P. DiNapoli today announced the following school district audits have been issued.
Auditors determined that while the board and district officials used $3.1 million in excess reserve funds as a financing source for a capital project, they did not do so in accordance with applicable statutes. Appropriations were overestimated by a total of $7 million from 2015-16 through 2018-19. An average of $500,000 of fund balance was appropriated each year, but was not used to finance operations. In addition, when unused appropriated fund balance is added back, surplus fund balance exceeded the limit each year by $345,000 to $611,000, or 2 to 3 percentage points.
Officials segregated the duties of employees responsible for online banking transactions, but they did not strengthen controls by improving their monitoring procedures. Officials entered into agreements with the district’s banks, but did not require confirmations for all electronic transactions. Auditors found the online banking policy does not clearly indicate how online transfers will be authorized and processed. In addition, a dedicated computer was not always used for online banking and none of the employees involved in online banking received Internet security awareness training.
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