Audit Highlights Lack of Internal Controls Over Finances in Schools

ALBANY -- State Comptroller Thomas P. DiNapoli today announced his office completed audits of East Greenbush Central School District, East Quogue Union Free School District, Longwood Central School District, Poland Central School District, Shoreham-Wading River Central School District and Westhill Central School District.

A lack of internal controls over finances and uncompetitive selection of contract vendors plagued the school districts, according to DiNapoli’s reports.

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Here are the results:

Longwood Central School District – (Suffolk County)
The audit found that district officials paid nine professional providers more than $1.2 million for contracts without the benefit of a competition. Additionally, the district obtained services from five professionals totaling $326,800 without using properly executed contracts and paid a sixth vendor $30,360 without a board-approved contract. Furthermore, auditors found the district incurred expenses of $12,299 for professional services provided prior to the issuance of purchase orders. Click here for a full report.

East Greenbush Central School District – (Rensselaer and Columbia counties)
Auditor’s found more than $6,200 in credit card purchases and expense reimbursements that did not conform to the district’s adopted policies. Also, the internal auditor was not entirely independent because he is jointly employed by the district and the Rensselaer-Columbia-Greene Board of Cooperative Educational Services (BOCES) and may be required to evaluate significant services or programs that BOCES provides to the district. Click here for a full report.

East Quogue Union Free School District – (Suffolk County)
District officials did not competitively bid $77,854 worth of goods purchased from two vendors and also paid nine vendors a total of $251,820 for professional services without soliciting competitive proposals. In addition, the district did not have written agreements with five professional service providers who collectively received $66,159 during the audit period. Click here for a full report.

Poland Central School District – (Hamilton, Herkimer and Oneida counties)
The audit found that the treasurer does not maintain adequate control over her signature. The district’s recordkeeping was also inadequate to protect district assets. The district received check images from the bank, but these images only showed the front side of the checks for many district bank accounts. Click here for a full report.

Shoreham-Wading River Central School District – (Suffolk County)
The audit found that the district did not comply with the requirements of General Municipal Law in ten out of 26 purchases tested. Seven purchases totaling $129,580 should have been bid. Click here for a full report.

Westhill Central School District – (Onondaga County)
The claims auditor did not receive any written procedures or a written job description related to her claims auditing duties and did not report directly to the board. The district also entered into a contract for $4,512 in the 2006-07 fiscal year in which a board member had a prohibited interest. Click here for a full report.

-- NYSSCPA.org News Staff

Posted on 7/8/08