[read complete report - pdf]

Audit Objective

Determine whether the Board provided adequate oversight of the District’s financial operations.

Determine whether the Board and District officials complied with Local Finance Law when using a line of credit.

Key Findings

• The Treasurer’s duties are not properly segregated and the Board and District officials did not provide adequate oversight over disbursements.
• We reviewed 46 non-payroll disbursements totaling $531,934 and determined 19 (41 percent) totaling $233,492 did not include any Board members’ initials to indicate they were audited. The remaining 27 claims totaling $298,442 that had initials did not include dates to determine when the claims audit had occurred.
• We reviewed 76 payroll transactions totaling $113,485 and found the Principal had not certified any of them.
• The Board did not comply with Local Finance Law when authorizing $220,000 of borrowing using a line of credit.

Key Recommendations

• Establish compensating controls to routinely monitor and review the Treasurer’s work.
• Audit and approve all claims before they are paid.
• Establish procedures to review and certify payroll prior to disbursement, and ensure proper support is included.
• Comply with Local Finance Law when authorizing District borrowing.

District officials agreed with our findings and indicated they plan to initiate corrective action.