Purpose of Audit

The purpose of our audit was to examine the District’s credit card purchases for appropriate use and compliance with the District’s policies for the period July 1, 2014 through October 31, 2015.

Background

The Lindenhurst Union Free School District is located in the Town of Babylon in Suffolk County. The District, which operates eight schools with approximately 6,170 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $148.5 million.

Key Findings

• The District’s credit card policy did not require employees to acknowledge receiving the policy.
• The District’s credit card policy did not address cash advances available with the general purpose cards.
• District officials do not maintain a Board-authorized list of fuel card users.
• District credit cards did not have a maximum spending limit.

Key Recommendations

• Amend the credit card policy to require users to acknowledge receiving the policy.
• Ensure that cash advances on District credit cards are no longer allowed.
• Maintain a complete list of those employees who are issued credit cards and report this information to the Board at each reorganizational meeting.
• Ensure that credit card maximum spending and account credit limits are in accordance with the limits authorized by the credit card policy.