Audit: Improper Payments to Jefferson School Official

ALBANY, N.Y. -- The former superintendent of Jefferson Central School District received $107,189 in improper and questionable payments because the school board failed to adequately oversee his contract agreements, according to an audit released Wednesday in a press release by state Comptroller Thomas P. DiNapoli.

Click here for the pdf audit. Click here for the full press release. Click here for more Society school coverage.

DiNapoli’s office referred the findings of the audit to the Schoharie County District Attorney’s office.

School district officials requested an audit in October 2005 when they noticed inconsistencies in payments made to the recently retired superintendent. Auditors found the former superintendent received $88,502 in improper payments and $18,687 in questionable payments, mostly at the time he retired from the district.

Improper payments included:

• $47,437 for duplicate vacation days and insurance buy outs;
• $34,473 for 62 unearned vacation days paid at an inflated rate;
• $3,133 for unauthorized salary;
• $3,103 for inflated vacation day buy-out rates; and
• $356 in reimbursements for mileage to and the cost of political dinners.

Questionable payments included:

• $12,133 for 30 additional vacation buy-out days;
• $6,335 for 15 extra sick days paid at an inflated rate; and
• $219 for reimbursed travel expenses.

Auditors found that the former superintendent maintained his own personnel file. It appears that he altered his employment contract several times, without board authorization, to increase the amount he would be paid when he retired. In fact, auditors discovered 14 different variations of the former superintendent’s contract over a five-year period, including three with photocopied signatures.

Auditors also found that district purchases and claims were not properly approved, processed and audited. In addition, internal controls over cash receipts and disbursements were not properly designed.

The audit recommends the board:

• store employment contracts in a secure location and not allow the superintendent to maintain his own personnel file;
• sign employment contracts only after the board authorizes and approves the contract; and
• take appropriate action to recover improper payments made to the superintendent.

The district and board generally agreed with the findings of the audit. The district also agreed to take corrective action and implemented some new practices immediately, including storing employment contracts in the district clerk’s office, noting when the board approves contracts on the documents themselves and approving a contract before the board president signs it. The district’s full response is included in the audit.

-- NYSSCPA.org News Staff

Posted on 7/26/07