New York State Comptroller Thomas P. DiNapoli today announced the following school district audits have been issued.
Unapproved ECA clubs were operating in the district and officials did not establish an adequate accounting system for the district’s funds. As a result, district officials cannot ensure that collections are properly collected, submitted, and deposited, and disbursements are for valid purposes. As a result, 72 of 90 transactions tested totaling $321,554 were not properly accounted for. Officials did not ensure collections and disbursements were always supported or that nine of the 38 deposits tested totaling $12,635 were deposited timely.
District officials overestimated appropriations, which made it appear that the district needed to increase taxes and use appropriated fund balance to close projected budget gaps, but the appropriated fund balance was not used to finance operations. The surplus fund balance has continuously grown over the past five fiscal years. As of June 30, 2021, it was over $7.1 million, or 24.3% of the next year’s budget, exceeding the 4% statutory limit. The district’s budgeted appropriations from 2016-17 through 2020-21 exceeded actual expenditures by $6.3 million, or 4.5%. Officials did not use the retirement contribution reserve to pay annual retirement contributions. Its excessive balance is enough to cover annual retirement contributions for nine years.
District officials did not adequately manage network user accounts, periodically compare installed software to an authorized software inventory or develop an IT contingency plan. Nine of the district’s network user accounts (8%) were not needed. This created additional network entry points that, if accessed by attackers, could be used to inappropriately access, and view sensitive information and compromise IT resources. District staff did not have sufficient documented guidance or plans to follow to recover data and resume essential operations in a timely manner.
District officials did not adequately manage non-student network user accounts to ensure unnecessary accounts were disabled. Specifically, district officials did not establish comprehensive written procedures to periodically review all network user accounts, identify unnecessary network user accounts, and notify the IT vendor to disable them. Nine former employees’ user accounts and 120 unneeded generic user accounts were not disabled on the network.
District officials did not adequately manage the district’s network user accounts to help prevent unauthorized use, access and/or loss. Auditors found district officials should have disabled 67 unneeded network user accounts. These unnecessary accounts had last log-on dates ranging from Jan. 3, 2012, to Sept. 3, 2021, and account for 15% of the district’s network user accounts.
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