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Audit Objective

Determine whether Tuxedo Union Free School District (District) officials ensured employees’ payroll payments and leave accruals were accurate, properly approved and supported.

Key Findings

District officials did not ensure employees’ payroll payments and leave accruals were accurate, properly approved and supported. We attribute the audit findings to inadequate Board oversight, policies and procedures and segregation of duties. As a result:

• District officials overpaid (or potentially overpaid) 30 employees a total of $113,564 in payroll and leave accrual payments, including $47,673 in overpayments to the Interim Superintendent. The Interim Superintendent was responsible for certifying the payroll accuracy.
• Thirty-six of the 104 full-time and part-time employees were not covered under a collective bargaining agreement (CBA), employment contract or Board resolution. As a result, payroll staff were unable to interpret what benefits employees are entitled to receive and may be improperly providing benefits to employees.

Key Recommendations

The Board and officials should:

• Ensure all salaries and hourly wages are established and approved by position, individual or part of a CBA.
• Establish procedures to ensure all leave accruals are reviewed annually to ensure the amount credited to each employee is accurate.

District officials generally agreed with our recommendations and plan to initiate corrective action.