Purpose of Audit

The purpose of our audit was to determine whether the Superintendent and the Director of Business Services provided adequate fiscal oversight over District financial operations for the period June 1, 2011, to July 9, 2012.

Background

The Cortland City School District is located in the City of Cortland and five towns in Cortland County. The District is governed by the Board of Education, which comprises seven elected members. The District’s budgeted expenditures for the 2012-13 fiscal year were $45.1 million.

Key Findings

• The former Superintendent and Director of Business Services did not provide sufficient oversight over the District’s financial operations. They both failed to properly assign users within the financial software, and Business Office staff performed incompatible duties without management’s sufficient oversight or control.
• District officials failed to ensure that Business Office staff were billing for various reimbursements due to the District. As a result, the District lost out on at least $52,000 in reimbursement revenues due.

Key Recommendations

• Ensure that the Director of Business Services and Treasurer assign financial duties so that one person does not have custody, recordkeeping responsibilities, and authority to approve and execute transactions.
• Ensure that the Treasurer establishes procedures to bill home districts for foster care children who are enrolled in the District. Ensure that the Treasurer establishes procedures for filing claims with Medicaid for support services provided to Medicaid-eligible students.