[read complete report – pdf]

Audit Objective 

Determine whether City of Yonkers (City) officials ensured Yonkers City School District (District) employees’ separation payments and health insurance buyouts were accurate.

Key Findings 

City officials did not always ensure District employees’ separation payments and health insurance buyouts were accurate. Officials also did not establish procedures to help ensure that calculations were accurate, reviewed or authorized. As a result, certain employees did not receive separation payments and health insurance buyouts in accordance with contractual agreements.

• Of the 46 separation payments we reviewed totaling $451,298, nine (20 percent) had calculation errors totaling $1,629.
• One former employee, as well as the estates of three former employees may have been entitled to separation payments totaling $23,937 that they did not receive.
• Of the 30 health insurance buyout payments we reviewed totaling $200,440, 12 payments (40 percent) totaling approximately $87,300 did not have the required proof of insurance on file. We also found buyout payments made to 10 employees (33 percent) had calculation errors totaling approximately $33,203.

Key Recommendations 

• Establish written separation payment procedures and an independent review and approval process.
• Review all health insurance buyouts to ensure they have adequate supporting documentation and are disbursed in accordance with applicable Collective Bargaining Agreements (CBAs).

City officials agreed with our findings and recommendations, and indicated they have initiated corrective action. Appendix B includes our comment on an issue raised in the City’s response letter.