Audit Objective 

Determine whether Newark Central School District (District) officials accurately calculated separation payments.

Key Findings 

District officials did not always accurately calculate separation payments and did not ensure an independent review of separation payment calculations was performed. Therefore, calculation errors went undetected and resulted in erroneous and missed payments. 

Of the 41 employees we reviewed, 14 separation payments totaling $66,036 were not calculated correctly, which resulted in separation payment calculation errors totaling $20,157. Specifically: 

• Our audit identified that four employees were not paid separation payments totaling $16,230, which District officials paid after we brought it to their attention. 
• Seven employees’ separation payments were overpaid a total of $3,770. 
• Three other employees’ separation payments were underpaid a total of $157. 

Key Recommendations 

• Establish written policies and procedures for issuing separation payments, including a formal calculation and review process. 
• Ensure separation payments are accurately calculated and adequate documentation is maintained to support the calculations and eligibility requirements. 

District officials generally agreed with our findings and indicated they will initiate corrective action. Appendix B includes our comment on the District’s response letter.