Contact:
Lois Whitehead, Public Relations Manager
212-719-8405
lwhithead@nysscpa.org

October 26, 2004 - A five-point plan to increase financial accountability in schools statewide in response to recent financial scandals at Long Island school districts was announced today at a press conference hosted by New York State Comptroller Alan G. Hevesi.

The plan was developed in cooperation with the representatives from the Office of the State Comptroller, the New York State School Boards Association, the New York State Society for Certified Public Accountants, the New York State Council of School Superintendents and the New York State Association of School Business Officials. The working group also consulted with representatives from the State Education Department. The plan will be submitted to the State Legislature.

Hevesi and Commissioner of Education Richard P. Mills will discuss the importance of financial accountability and oversight for school districts tonight to several hundred school officials in a live statewide satellite teleconference to be broadcast to more than 40 locations around the State.

“The vast majority of school officials are honest, hard-working people trying to give our students the best opportunities possible, but improvements in financial oversight are needed to help protect the public trust in our schools,” Hevesi said. “This coalition of educators and administrators has developed a strong plan to increase school accountability and ensure school dollars are being spent appropriately. We are hopeful that the Legislature will adopt these initiatives. I also urge local school officials to implement these measures to ensure the public that our school resources are being spent appropriately.”

The five-point plan includes:

• Enhancing the effectiveness of external audits that all school districts are required to obtain every year
• Requiring audit committees in school districts to ensure audit findings and other accountability issues receive adequate oversight
• Requiring a competitive RFP process for selecting auditors when contracts expire, or at least every five years
• Creating an internal audit function within each school district’s financial management team
• Requiring six hours of financial oversight training for all newly elected school board members

Anne M. Byrne, president of the New York State School Boards Association, said “Board of Education members throughout our state know that leading children to excellence demands sound financial stewardship. The New York State School Boards Association is committed to being a part of the solution and is proud to have collaborated with the Comptroller in creating a thorough, well-reasoned and workable approach to ensuring fiscal accountability for our schools. Our communities have entrusted school boards with their funds and their children and we will continue to do all we can to earn their confidence.”

“Comptroller Hevesi’s plan will help assure that tax dollars are spent and accounted for appropriately,” said Lou Grumet, executive director of the New York State Society of CPAs. “CPAs understand that school boards connect the will of the people to the education of the child. Appropriate and strong internal controls, regulations and standards will make sure that tax dollars reach the children they are meant to serve. We are happy to partner with the Comptroller on this initiative.”

“Stronger laws are part of a comprehensive, ongoing effort to sustain trust in the public schools. We support Comptroller Hevesi’s efforts to develop a sound package of legislative reforms. The Council of School Superintendents is also devoting its own resources to provide school district leaders the best ideas and professional development on how to prevent and detect fraud,” said Tom Rogers, executive director of the New York State Council of School Superintendents.

“NYSASBO has supported, and will continue to support cost effective and sound financial practices that safeguard public moneys and instill public trust. We look forward to continuing to work with the Comptroller and other policymakers on developing appropriate public policies,” said Steven G. Van Hoesen, director of Government Relations for New York State Association of School Business Officials.

In the wake of the recent Long Island school scandals, Hevesi announced audits of 21 school districts on Long Island, including in-depth audits of internal controls over financial operations, which include extensive testing of financial transactions in five districts, and administrative audits of expenses such as credit card usage, meals and travel that will be done in 16 other districts.

“Our audits can help fix the schools, but they are far from the only solution,” Hevesi said. “Only by having every level of government work together to take the necessary steps to strengthen oversight and improve management in schools can we identify mismanagement and catch the few dishonest individuals who are stealing from our schools,” Hevesi said. “It is essential that we restore public trust in our schools so we can get back to what should be the main focus of our schools — ensuring a bright future for our children.”

In addition, 26 hands-on training seminars are being held around the State for school board members, business administrations and superintendents.

“I also want to acknowledge the enormous contribution Nassau County Comptroller Howard Weitzman has made to the effort to strengthen financial controls in public schools. Howard been very influential in the development of this reform plan and in developing training materials that are now being used to enhance financial controls in school districts not only on Long Island but also around New York State,” Hevesi said.