Purpose of Audit

The purpose of our audit was to assess the District’s oversight of financial operations and information technology (IT) for the period July 1, 2011, to March 31, 2013.

Background

The Gloversville Enlarged School District is located in Fulton County. The District is governed by the Board of Education, which comprises nine elected members. The District 2011-12 operating expenditures totaled approximately $51.5 million for the general fund, $4.3 million for the special aid fund, and $1.4 million for the cafeteria fund.

Key Findings

• District officials stated there was no audit committee active at the District.
• The District has not received an internal audit report since 2010-11 and the District has not appointed an internal auditor for the 2012-13 school year.
• None of the 50 claims we tested, totaling $967,570, had been audited. One claim, totaling $48,998, was for a truck that had no documentation to show the purchase was subject to competition, and five claims, totaling $3,317, were for credit card charges where the credit card company electronically debited the payments directly from the District’s bank account.
• The District does not have a written disaster recovery plan.
• The Treasurer has administrative rights in the financial software that allow access to all aspects of the system and District officials do not produce or review activity logs.

Key Recommendations

• Annually appoint an audit committee and enumerate its responsibilities in a charter.
• Ensure the internal audit function is performed and documented.
• Audit all claims against the District prior to payment or appoint a claims auditor to do so.
• Adopt a formal written disaster recovery plan.
• Assign the Treasurer only those user permissions that are essential for her job duties. Periodically produce and review activity logs for all users in the financial management system.