Purpose of Audit

The purpose of our audit was to evaluate the District’s internal controls over the claims audit process for the period July 1, 2011, to September 30, 2012.

Background

The North Colonie Central School District (District) is located in the Town of Colonie, Albany County. The District is governed by the Board of Education (Board) which comprises nine elected members. Budgeted general fund expenditures for the 2012-13 fiscal year are $94.1 million, and funded primarily with real property taxes and State aid.

Key Finding

• The Board adopted claims processing policies which require all claims to be audited prior to payment except for certain allowed exceptions. District policy requires the claims auditor to ensure that all claims are properly authorized, itemized, supported and that goods and services have been received in the amount and price as ordered prior to payment. We randomly selected 45 claims from all funds totaling $60,051 during our audit period and tested them to see if they were properly supported and audited in a timely manner. All of the 45 claims tested were audited timely and properly supported. However, the District reimbursed its dental insurance provider via automated clearing house (ACH) debits for payments made on behalf of District employees, totaling $554,458, during our audit period. District officials stated these claims were not audited prior to payment.

Key Recommendation

• Ensure that no claim against the District, other than those specifically allowed by Education Law, is paid prior to audit and approval by the claims auditor.