Cato-Meridian Central School District – Salaries, Wages and Leave Benefits (2021M-173)

Issued Date
June 24, 2022

[read complete report - pdf]

Audit Objective

Determine whether Cato-Meridian Central School District (District) officials accurately paid salaries, wages and leave benefits and properly accrued leave benefits.

Key Findings

District officials accurately paid salaries and wages but did not accurately pay unused leave benefits, and leave accruals were not proper. As a result:

  • $14.1 million of (97 percent) salary and wage payments were disbursed without authorization.
  • For four of nine employees that had separation payments, unused leave was incorrectly calculated - resulting in over/underpayments of $7,430.
  • Two administrators received leave valued at $18,042 without Board approval.
  • 15 employees (47 percent) had leave accrual errors totaling $13,529.

Key Recommendations

  • Develop and implement procedures for monitoring salary and wage payments.
  • Seek recovery of any amounts overpaid to employees.
  • Periodically review accrued leave records.
  • Adequately review and certify payrolls.

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