Purpose of Audit

The purpose of our audit was to examine the District’s payroll procedures and reserve funds for the period July 1, 2014 through March 23, 2016.

Background

The Greenburgh Central School District is located in the Town of Greenburgh, Westchester County. The District, which operates six schools with approximately 2,000 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $65 million.

Key Findings

• District officials have not provided employees with written procedures over payroll.
• District officials did not adequately segregate payroll duties or establish sufficient compensating controls.
• Overtime and leave requests were not preapproved as required.
• There was no evidence that the Board periodically assessed four of the six reserves for necessity.

Key Recommendations

• Develop written payroll-processing procedures for employees to follow.
• Implement compensating controls to address the lack of segregation of duties in the payroll process.
• Ensure that leave time is preapproved, that supporting documentation is retained and that overtime is preapproved.
• Adopt a reserve fund policy that addresses the funding and use of all reserve funds.