New York State Comptroller Thomas P. DiNapoli today announced the following school district audits have been issued.
Albion Central School District – Financial Management (Orleans County)
The board and district officials did not adopt realistic budgets and did not properly manage fund balance and reserves. The board and district officials overestimated appropriations by a total of $24 million from 2017-18 through 2020-21. Officials could not explain how the finance committee participated in the budgeting process or identify what reports the committee receives or how they are reviewed. The district’s budgeting practice of overestimating appropriations resulted in it levying more real property taxes than needed and resulted in the accumulation of surplus fund balance in excess of the statutory limit by $17.3 million or 47 percentage points.
Chester Union Free School District – Information Technology (Orange County)
District officials did not adequately manage and monitor network user accounts. District officials should have disabled unneeded user accounts and monitored network user compliance closer. Sensitive information technology control weaknesses were communicated confidentially to officials.
Frewsburg Central School District – Extra-Classroom Activity (ECA) and Scholarship Funds (Chautauqua County)
ECA and scholarship funds were not properly accounted for and appropriately used. A lack of adequate oversight, segregation of duties and lack of written policies and procedures for scholarship funds allowed the former treasurer to use funds donated for scholarships and funds collected from other revenue sources to conceal misappropriated and missing money. $6,982 is missing or was improperly withdrawn from the ECA and scholarship funds. Collections were not deposited in a timely manner or properly supported. ECA and scholarship fund accounting records were not properly maintained.
Holland Central School District – Claims Audit (Erie County)
The board did not ensure that claims were adequately supported and properly audited before payment. In addition, the current claims auditor did not receive proper training to fulfill the board’s claims audit responsibilities. As a result, there is an increased risk that improper or unsupported payments could be made and not be detected and corrected.
Lake Pleasant Central School District – Claims Auditing (Hamilton County)
The board ensured that claims were adequately documented and for appropriate purposes. However, claims were not always properly audited and approved before payment. Eleven signed checks (22 percent) reviewed totaling $101,360 were printed and mailed before the claims auditor audited and approved the corresponding claims. Five non-check disbursements (38 percent) reviewed totaling $109,371 were not audited and approved prior to payment.
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