Purpose of Audit

The purpose of our audit was to evaluate the District’s claims processing procedures and fund balance management for the period July 1, 2014 through August 31, 2015.

Background

The Morris Central School District is located in the Towns of Laurens, Morris, New Lisbon and Pittsfield in Otsego County. The District, which operates one school with approximately 500 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $9.5 million.

Key Findings

• The auditor from the Otsego Northern Catskills Board of Cooperative Educational Services (BOCES), who approves all District claims, audited payments to the BOCES itself.
• The Treasurer does not directly supervise the application of her signature on checks.
• Certain reserves had significant balances when compared to their respective liabilities.

Key Recommendations

• Ensure that BOCES’ claims for goods and services are audited and approved by someone other than the BOCES claims auditor.
• Discontinue the practice of allowing the Treasurer’s electronic signature to be affixed to checks without her direct authorization or supervision.
• Continue to evaluate reserve fund balances and follow the five-year plan regarding the funding and use of such reserves.