Issued Date
August 05, 2022
Audit Objective
Determine whether Clinton-Essex-Warren-Washington Board of Cooperative Educational Services (BOCES) officials ensured the third-party administrator (administrator) returned forfeited funds from the health flexible spending arrangement (FSA), dependent care assistance program (DCAP) and health reimbursement arrangement (HRA) in a timely manner.
Key Findings
BOCES officials did not ensure the administrator returned forfeited funds from the FSA, DCAP and HRA in a timely manner.
- As of December 31, 2021, the administrator had not returned $83,068 (97 percent) in forfeited funds from the FSA, DCAP and HRA for the 2014-15 through 2020-21 plan years to BOCES. As a result, all forfeited funds were not annually available for BOCES’ use. Officials were not aware of the unreturned funds until we notified them in January 2022.
- BOCES lacked adequate procedures to ensure the administrator returned all forfeited funds from the FSA, DCAP and HRA in a timely manner.
Key Recommendations
- Establish procedures to ensure the administrator returns all forfeited funds from the FSA, DCAP and HRA in a timely manner.
- Ensure the administrator returns all forfeited funds owed to BOCES.
- Consult with legal counsel with respect to the proper use of forfeited funds returned by the administrator.
District officials generally agreed with our recommendations and have initiated, or indicated they planned to initiate corrective action.