Determine whether Three Village Central School District (District) officials provided appropriate oversight over financial operations.
District officials did not provide appropriate oversight over financial operations. District officials did not:
- Properly assign administrative and user access rights to the financial software.
- Establish an electronic banking policy or adequate bank transfers or electronic payment procedures.
- Segregate the Treasurer’s duties or provide adequate oversight.
- Present all claims to the claims auditor for review and approval prior to payment. At least $37.9 million in claims were not reviewed or approved, as required, prior to payment.
- Ensure $43 million in claims are processed through the normal accounts payable process. The Treasurer controlled most aspects of these transactions rather than the accounts payable department. Therefore, there was no segregation of duties.
- Adhere to the financial software policy, ensure all claims are audited and approved prior to payment and segregate the Treasurer’s duties or provide greater oversight as a compensating control.
District officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.