Purpose of Audit

The purpose of our audit was to review the District’s oversight of its child care program for the period July 1, 2014 through December 31, 2015.

Background

The Sag Harbor Union Free School District is located in the Towns of Southampton and East Hampton in Suffolk County. The District, which operates two school buildings with approximately 1,000 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $37.6 million.

Key Findings

• District officials did not ensure that the functions of collecting, recording and depositing of cash were adequately segregated.
• District officials have not established procedures specifying an official fee schedule, who is eligible for financial assistance, how past due accounts are to be collected or the records to be maintained.
• The Director did not maintain a separate record for each family to document if the full or reduced Program rates should be charged and whether registration fees were paid in full.

Key Recommendations

• Develop and adopt written policies and procedures for collecting, processing, recording and depositing child care program cash receipts.
• Develop and adopt procedures for program operations including, but not limited to, rate schedules with full and reduced rates, procedures for approving applications for reduced rates and the type and form of records to be maintained.
• Maintain detailed records for each family, including a completed registration form for each child, any applications for financial assistance and an accounting of all fees charged, paid, prepaid and overdue.