[read complete report – pdf] 

Audit Objective

Determine whether the Corning City School District (District) claims auditor properly audited and approved claims prior to payment.

Key Findings

The District’s claims auditor did not properly audit and approve all claims prior to payment. We reviewed 100 claims totaling approximately $19.5 million and determined that:

• The claims auditor, who is an employee of the Greater Southern Tier Board of Cooperative Educational Services (GST BOCES), inappropriately audited 43 claims totaling approximately $16.1 million paid to GST BOCES. This compromised the claims auditor’s objectivity and independence. The Board of Education (Board) should have audited these claims.
•  The Treasurer paid 18 claims for health insurance reimbursements and credit card purchases totaling approximately $1.7 million prior to audit.
•  49 travel-related credit card charges totaling $28,555 did not include a conference request pre-approval form or other supporting documentation.

Key Recommendations

• Ensure claims are paid after audit and contain adequate supporting documentation such as invoices, receipts and conference approval forms.
• Ensure all claims for GST BOCES service charges are independently audited. District officials generally agreed with our findings and indicated they plan to initiate corrective action.