Purpose of Audit

The purpose of our audit was to examine the claims audit process for the period July 1, 2014 through April 30, 2016.

Background

The Norwood-Norfolk Central School District is located in the Towns of Louisville, Madrid, Norfolk, Potsdam and Stockholm in St. Lawrence County. The District, which operates one school with approximately 1,040 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year totaled approximately $21 million.

Key Findings

• District officials contracted with St. Lawrence-Lewis BOCES through a cooperative service agreement to audit District claims, and a BOCES employee audited all District claims including those for BOCES-provided services.
• One claim for a grant contract with BOCES (audited and approved by the BOCES claims auditor) was approved and paid in December 2015, six months before the services were received.

Key Recommendations

• Ensure that the BOCES’ claims are audited and approved by someone other than the BOCES claims auditor.
• Ensure that payment of claims is not authorized before the related goods or services have been received, except when permitted by law, and ensure that claims contain adequate supporting documentation before authorization.