New York State Comptroller Thomas P. DiNapoli today announced his office completed audits of the Ausable Valley Central School District, Frontier Central School District and the Utica City School District.
“In an era of limited resources and increased accountability, it’s critical that schools make every dollar count,” DiNapoli said. “By auditing school district and charter school finances and operations, my office continues to provide taxpayers the assurance that their money is being spent appropriately and effectively.”
Ausable Valley Central School District – Internal Controls Over Selected Financial Activities (Clinton County)
The board had not adopted comprehensive written policies and procedures providing guidance and internal controls over departmental cash receipts. In addition, internal controls over the district’s information technology system were not appropriately designed or operating effectively.
The district reported $195,355 of unexpended surplus fund balance remaining as of June 30, 2013. Given the size of district operations this is a dangerously low level. Auditors also found that district officials did not establish adequate safeguards over mobile devices, and that district employees did not use mobile devices in accordance with the district’s acceptable-use policy.
The district relied heavily on the use of fund balance in the 2010-11 and 2011-12 budgets. As a result, the district’s unexpended surplus funds declined to a deficit of $1.1 million. In addition, the district borrowed nearly $10 million during the same time frame to meet short-term cash flow needs, incurring $150,000 in interest costs.