There were no surprises in a state audit of one Cayuga-Onondaga Board of Cooperative Educational Services component school district.
In a final audit report released last week, the state comptroller's office found no financial discrepancies in the Jordan-Elbridge Central School District, but identified areas the district could improve upon to prevent any such instance from occurring.
“I thought it went well and, frankly, the word is gratitude,” Superintendent Marilyn Dominick said. “It's always healthy when someone takes a good thorough look and you come out with very few issues.”
The state comptroller's office reviewed whether the district's internal controls over finances were designed appropriately and operating effectively for the period July 1, 2006 through Dec. 31, 2007. The review is part of a state initiative to examine all school districts' procedures.
The report's recommendations didn't surprise district officials; rather, they already knew where they needed to improve and began implementing a corrective plan prior to the audit.
“The results didn't surprise us,” she said. “In fact, when a couple of things were brought to our attention, we had already taken steps to improve them.”
In the report, auditors noted that there isn't a clearly-defined system of checks and balances in management of district finances; that is, while there were no instances of fraud or misuse of district funds, the current system increases the risk of such abuse.
During the audit period, auditors stated the treasurer, deputy treasurer and assistant superintendent for business performed “incompatible duties with little oversight.” The treasurer's functions includes receiving cash receipts from district employees, preparing and making deposits, entering information in the computerized accounting system, preparing journal entries and reconciling bank statements.
The assistant superintendent, who in the 2006-07 and 2007-08 academic years was appointed deputy treasurer and from Sept. 2007 through Dec. 2007 performed the duties of the treasurer due to a vacancy, also functioned as the purchasing agent and the payroll certifier.
“The positions of deputy treasurer and purchasing agent are incompatible because the combined duties of both positions give one individual the capability to create a purchase, authorize that purchase and then make the payment for that same purchase,” the report stated.
To remedy this, the board of education during its July reorganizational meeting, appointed the assistant superintendent only as the purchasing agent and not as deputy treasurer while the superintendent is functioning as the payroll certification officer.
Auditors reviewed a sample of the district's cash receipt and disbursement transactions, including state and federal aid and tax receipts totaling $6,400,311 for Oct. 2007 and various other receipts during the audit period totaling $30,060 and found no discrepancies.
Additionally, auditors examined 75 non-payroll disbursements totaling $147,382 and 50 payroll disbursements totaling $67,604 and compared them to warrants, claims and payroll authorizations. They found that none of the 50 payroll disbursements were on a certified payroll and upon further examination, they discovered that one payroll disbursement indicated that an employee was overpaid $1,158.
Dominick said the assistant superintendent already learned of the overpayment - which totaled $11,581 from Aug. 31, 2007 to Jan. 4, 2008 - and established a payment schedule with the employee to recoup the overpayment. As of November 2008, the report notes, the employee repaid the district $2,100.
Payroll is now certified, Dominick said, and a printed report is now used to ensure that everything is properly reconciled.
The report also states that during the audit period, the assistant superintendent had “super user” full access rights over the district's computerized accounting system with little oversight. Dominick said at the time of the audit, the district was just installing the program and the assistant superintendent was in charge of its implementation. Proper divisions of responsibilities are established now that the system is up and running.
Staff writer Alyssa Sunkin can be reached at 253-5311 ext. 239 or alyssa.sunkin@lee.net
“I thought it went well and, frankly, the word is gratitude,” Superintendent Marilyn Dominick said. “It's always healthy when someone takes a good thorough look and you come out with very few issues.”
The state comptroller's office reviewed whether the district's internal controls over finances were designed appropriately and operating effectively for the period July 1, 2006 through Dec. 31, 2007. The review is part of a state initiative to examine all school districts' procedures.
The report's recommendations didn't surprise district officials; rather, they already knew where they needed to improve and began implementing a corrective plan prior to the audit.
“The results didn't surprise us,” she said. “In fact, when a couple of things were brought to our attention, we had already taken steps to improve them.”
In the report, auditors noted that there isn't a clearly-defined system of checks and balances in management of district finances; that is, while there were no instances of fraud or misuse of district funds, the current system increases the risk of such abuse.
During the audit period, auditors stated the treasurer, deputy treasurer and assistant superintendent for business performed “incompatible duties with little oversight.” The treasurer's functions includes receiving cash receipts from district employees, preparing and making deposits, entering information in the computerized accounting system, preparing journal entries and reconciling bank statements.
The assistant superintendent, who in the 2006-07 and 2007-08 academic years was appointed deputy treasurer and from Sept. 2007 through Dec. 2007 performed the duties of the treasurer due to a vacancy, also functioned as the purchasing agent and the payroll certifier.
“The positions of deputy treasurer and purchasing agent are incompatible because the combined duties of both positions give one individual the capability to create a purchase, authorize that purchase and then make the payment for that same purchase,” the report stated.
To remedy this, the board of education during its July reorganizational meeting, appointed the assistant superintendent only as the purchasing agent and not as deputy treasurer while the superintendent is functioning as the payroll certification officer.
Auditors reviewed a sample of the district's cash receipt and disbursement transactions, including state and federal aid and tax receipts totaling $6,400,311 for Oct. 2007 and various other receipts during the audit period totaling $30,060 and found no discrepancies.
Additionally, auditors examined 75 non-payroll disbursements totaling $147,382 and 50 payroll disbursements totaling $67,604 and compared them to warrants, claims and payroll authorizations. They found that none of the 50 payroll disbursements were on a certified payroll and upon further examination, they discovered that one payroll disbursement indicated that an employee was overpaid $1,158.
Dominick said the assistant superintendent already learned of the overpayment - which totaled $11,581 from Aug. 31, 2007 to Jan. 4, 2008 - and established a payment schedule with the employee to recoup the overpayment. As of November 2008, the report notes, the employee repaid the district $2,100.
Payroll is now certified, Dominick said, and a printed report is now used to ensure that everything is properly reconciled.
The report also states that during the audit period, the assistant superintendent had “super user” full access rights over the district's computerized accounting system with little oversight. Dominick said at the time of the audit, the district was just installing the program and the assistant superintendent was in charge of its implementation. Proper divisions of responsibilities are established now that the system is up and running.
Staff writer Alyssa Sunkin can be reached at 253-5311 ext. 239 or alyssa.sunkin@lee.net
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