Purpose of Audit

The purpose of our audit was to assess the Board’s involvement in the District’s $17 million capital project for the period June 1, 2011 through September 10, 2015.

Background

The Otselic Valley Central School District is located in the Chenango and Madison County Towns of Otselic, Lincklaen, Pitcher, Nelson, Lebanon, Georgetown, Pharsalia, Smyrna, Plymouth and Eaton. The District, which operates one school with approximately 360 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $10.2 million.

Key Findings

• The Board did not ensure that goods and services were procured in compliance with General Municipal Law.
• The Board did not periodically obtain and review budget-to-actual financial reports.
• The Board did not review and approve change orders.

Key Recommendations

• Ensure that all capital project purchases are competitively bid as required by statute.
• Obtain and review budget-to-actual financial reports for capital projects throughout the life of the projects.
• Review and approve all project change orders in accordance with New York State Department of Education requirements