Audit Objective

Determine whether the South Kortright Central School District (District) Board of Education (Board) and District officials ensured that claims were adequately supported and properly audited prior to payment.

Key Findings

Although the Board and District officials generally ensured claims were adequately supported and properly audited prior to payment, certain purchases of goods and services we reviewed lacked necessary supporting documentation. In addition, we determined that:

• The Board did not comply with New York State Education Law Section 1709 (20-a) when it appointed the Clerk of the Board as the deputy claims auditor.
• The claims auditor and deputy claims auditor, as part of their claims audit process, did not verify that requests for proposals (RFPs) were solicited for seven professional service providers and the insurance provider that were paid a total of $205,042 during our audit period.
• 18 claims totaling $20,834 were approved without documentation to verify compliance with the District’s procurement policy.

Key Recommendations

• Ensure the claims auditor and deputy claims auditor meet eligibility for appointment.
• Conduct a thorough and deliberate audit of each claim before authorizing payment.

District officials agreed with our recommendations and have indicated they plan to initiate corrective action. Appendix B includes our comment on an issue raised in the District’s response.