Pine Plains Central School District - Internal Controls Over Select Financial Activities (2018M-52)

Issued Date

June 29, 2018

Audit Objective

Determine the accuracy of the Treasurer's reports and the effectiveness of internal controls over bank checks and transfers.

Key Findings

Officials did not identify $93,569 in federal withholding penalties that were incurred and paid by the Treasurer.
Officials did not properly oversee the bank reconciliation and accounting processes of the Treasurer.

Key Recommendations

The Board should review and segregate incompatible duties or have mitigating oversight.
The Board should ensure that interim financial reports are reviewed to detect errors in preparation.

Background

The Pine Plains Central School District (District) serves residents of Dutchess and Columbia Counties. The Board of Education (Board) is the governing and legislative body of the District. The Board is composed of seven members, three of which also function as the District’s audit committee.

The District Superintendent (Superintendent) serves as the District’s chief executive officer, while the Board President serves as the District’s chief financial officer.

The Assistant Superintendent for Business and Finance (Assistant Superintendent) is responsible for the District’s day-to-day management and oversight of the Business Office staff, including the Treasurer. At the start of our audit, the Treasurer resigned because she made mistakes in filing the District’s federal payroll reports and in submitting federal payroll payments which resulted in penalties.

Quick Facts
Students	1,001
Staff	262
2016-17 Budgeted Appropriations	$30 million

Audit Period

July 1, 2014 – September 22, 2017