Purpose of Audit

The purpose of our audit was to examine internal controls over budget transfers and IT for the period July 1, 2014 through August 19, 2015.

Background

The Haldane School District is located in the Town of Phillipstown in Putnam County and the Town of Fishkill in Dutchess County. The District, which operates two schools with approximately 890 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $22.9 million.

Key Findings

• The District’s budget transfer policy does not state a dollar threshold for budget transfer approvals.
• The current budget transfer approval process could allow budget transfers to be made with late or no approval.
• The payroll clerk, School Business Manager and two employees of a contractor all have administrative privileges within the financial application.
• The server room is generally not locked even though the door has a locking mechanism.

Key Recommendations

• Update the budget transfer policy to include a dollar threshold for budget transfer approvals.
• Ensure that budget transfers are approved by the Superintendent in a timely manner.
• Limit administrative privileges to an individual who is independent of financial transactions.
• Implement appropriate physical controls in the server and Internet service rooms to better protect the District’s IT assets.