Purpose of Audit

The purpose of our audit was to assess the District’s payroll procedures for the period July 1, 2014 through December 31, 2015.

Background

The Northeastern Clinton Central School District is located in the Towns of Altona, Champlain, Chazy and Mooers in Clinton County. The District, which operates four schools with approximately 1,350 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year total approximately $27.4 million.

Key Findings

• The Board adopted a payroll policy that included oversight procedures to mitigate the risks associated with outsourcing payroll, but the procedures were either not adequately performed or not performed at all.
• The Superintendent did not compare payroll registers to source documents when certifying payrolls.
• Three employees were overpaid by a combined total of $9,630 and one employee was underpaid by $551.

Key Recommendations

• Adopt written policies and procedures for processing payrolls, clearly establishing the duties and responsibilities of each person involved in the payroll process, and monitor implementation of the policies.
• Compare payroll registers to source documents when certifying payrolls.
• Direct the District’s attorney to review the identified overpayments and to take whatever appropriate action within the law to recover those funds and to reimburse identified underpayments.