Purpose of Audit

The purpose of our audit was to examine the claims audit function for the period July 1, 2014 through September 30, 2015.

Background

The Beacon City School District is located in the City of Beacon, Dutchess County. The District, which operates six schools with approximately 3,400 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2014-15 and 2015-16 fiscal years were $64.6 million and $66.3 million, respectively.

Key Findings

• The Board did not develop a comprehensive job description that outlines the expectations and requirements of the claims auditor.
• The Board did not provide purchasing policies for the claims auditor to use as guidance when auditing the claims related to purchases that do not require competitive bidding.
• The claims auditor did not ensure that sufficient funds were available on open purchase orders when approving claims resulting in eight open purchase orders being overspent by $77,436.

Key Recommendations

• Develop a comprehensive job description for the claims auditor to explain its expectations and requirements including the need to routinely report the results of the claims audit to the Board.
• Develop and implement a purchasing policy and procedures for the procurement of goods and services when competitive bidding is not required by law, to ensure that the claims auditor has adequate criteria against which to review claims.
• Ensure that all claims with an OPO have sufficient funds available before approving the claim for payment.