New York State Comptroller Thomas P. DiNapoli today announced the following school district audits were issued.
The district did not maximize Medicaid reimbursements by submitting claims for all eligible Medicaid services provided. The district lacked adequate procedures to ensure Medicaid claims were submitted and reimbursed. Claims were not submitted for 1,251 eligible services totaling $26,637. Had these services been claimed, the district would have realized revenues totaling $13,319 — 50% of the reimbursement.
District officials did not ensure that extra classroom activity (ECA) funds were adequately safeguarded or that the collections were always properly supported. ECA disbursements were properly accounted for. The faculty auditor did not adhere to the district’s ECA policy, which resulted in insufficient oversight of and inadequate reviews of their collections and records. The student treasurers did not maintain adequate supporting documentation for 69% of the collections reviewed — 32 of the 70 collections totaling $30,970 — which prevented district officials from determining whether the collections were remitted intact and in a timely manner. Student treasurers also did not maintain adequate supporting documentation for three of the seven fundraising events reviewed. This prevented district officials from ensuring all the ECA clubs’ fundraising activities collections were properly supported.
District officials did not always seek competition for services. Officials paid $135,000 to 10 of the 14 service providers reviewed without seeking competition. Officials also paid $6,410 to an employee’s private business for lawn care services without public written disclosure of his interest in the contract with the district.
Officials did not establish adequate controls over the district’s network user accounts to protect against unauthorized use, access and loss. Officials also did not disable 26 unneeded generic accounts of the 48 generic network accounts examined. They did not ensure acceptable use policy compliance. In addition, officials did not monitor the use of the information technology (IT) resources. They did not provide IT security awareness training to all employees using IT resources. Sensitive information technology (IT) control weaknesses were communicated confidentially to officials.
The board ensured the claims auditors reviewed were adequately documented, for appropriate purposes and properly audited and approved prior to payment. However, the board could have saved the district $1,855 by adopting federal per diem rates for travel expenses.
The board and district officials did not ensure information technology (IT) systems were adequately secured and protected. District officials did not monitor compliance with the district’s computer acceptable use policy. The district also did not have a contingency plan to recover in the event of a significant service interruption. In addition, the Board did not physically control access to or establish environmental controls over the server room. Sensitive IT control weaknesses were communicated confidentially to officials.
West Canada Valley Central School District – Non-Payroll Disbursements (Herkimer County and Oneida County)
District officials did not implement adequate internal controls to ensure that non-payroll disbursements were authorized and proper. The business manager/treasurer did not control when her electronic signature was used by another employee to sign checks. The claims auditor did not approve medical, vision, and dental insurance claims totaling $3.9 million. The board also did not develop an online banking policy or procedures to verify that transactions are proper.
District officials did not adequately secure access to the network and information systems. District officials also did not disable six unnecessary user accounts. They did not establish written policies or procedures to monitor shared accounts or for adding, modifying or disabling user permissions to the network and information systems. District officials also did not establish a written agreement with the Erie 1 Board of Cooperative Educational Services (BOCES) to define information technology services to be provided.
In addition, sensitive IT control weaknesses were communicated confidentially to officials.
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