New York State Comptroller Thomas P. DiNapoli today announced the following local government and school audits were issued.

Remsenburg-Speonk Union Free School District – Financial Management (Suffolk County)

The board and district officials did not properly manage the district’s fund balance. The board adopted budgets that annually overestimated appropriations by an average of $1.3 million (9%) per year, or a cumulative total of approximately $6.4 million. The majority of the overestimated appropriations ($5.6 million) were for special education instruction. From fiscal years 2019-20 through 2022-23, the district’s reported surplus fund balance ranged from 10 to 15% of the upcoming year’s budget, which was $962,000 to $1.8 million over the 4% statutory limit. While district officials appropriated a total of $5.5 million of surplus fund balance over the last five years, officials only used $350,000 of this amount after experiencing operating surpluses in four of the last five years. When the unused appropriated fund balance is added back to the district’s reported surplus fund balance, the recalculated amount ranged from approximately 12 to 23% of the upcoming year’s budget, which exceeds the statutory limit by 8 to 19 percentage points. At the end of the 2023-24 fiscal year, the recalculated surplus fund balance was $1.9 million, which exceeded the statutory limit by nearly $1.3 million. Despite having excess surplus fund balance available, the board increased taxes by an average of about $318,000 (2%) each year from 2019-20 to 2023-24.

Center Moriches Union Free School District – Payroll (Suffolk County)

Officials did not make accurate, approved and supported payroll payments to employees for tutoring, covering classes, chaperoning and sports scorekeeping. Time sheets for 13 employees were not adequately supported to ensure payments totaling $100,103 were accurately paid. Auditors questioned the reasonableness of $14,190 in payments for 258 chaperoning and sports scorekeeping events due to various discrepancies with game schedules. For example, time sheets were submitted with overlapping game times and for dates when there were no games scheduled. Officials did not develop and adopt a written payroll policy or procedures to convey expectations and processes to be followed for ensuring payroll payments to employees for miscellaneous activities were accurate, approved and supported.

Capital Region Board of Cooperative Educational Services (BOCES) – State Aid

Although officials properly claimed state aid totaling $3.8 million for administrative expenditures, BOCES officials claimed excess state aid for facility rental costs. Because they improperly included this rental revenue received by BOCES without deducting portions that were not paid by component districts, all 23 districts collectively received almost $2 million more state aid than they were entitled to. In addition, officials properly claimed BOCES aid totaling $39.3 million for approved aidable services and reached out to State Education Department (SED) in November 2023 to correct an identified error. However, officials did not subsequently reconcile payments from SED to their financial application to verify corrections were made and that all state aid was claimed for the 2023-24 fiscal year. As a result, two component districts did not receive $29,918 of state aid owed to them.

Hyde Park Fire and Water District – Procurement (Dutchess County)

The board did not always procure capital assets, goods and services in a cost-effective and transparent manner. Specifically, the board did not seek competition when entering into a contract to purchase a ladder truck for $1.9 million or maintain written support to demonstrate that the district properly used an exception to the competitive bidding requirements. The board also did not obtain quotes when purchasing six goods and services totaling $41,316 and did not request proposals for one professional service contract totaling $19,043, as required by policy. Also, one trustee did not publicly disclose, in writing, his interest in a contract when the district purchased property from a separately incorporated fire department for $160,000.

Town of Spencer – Disbursements (Tioga County)

The board did not conduct a thorough audit of all claims paid during the audit period. As a result, auditors identified claims being paid without the board’s knowledge. Auditors reviewed all 647 non-payroll disbursements made during the audit period totaling approximately $2.1 million and identified 69 disbursements, totaling $248,900, that were not included on the board’s list of all claims that have been audited and approved for payment. Auditors also identified 16 disbursements totaling $32,100 that did not match the amount disbursed on the canceled check image. In addition, auditors reviewed 123 disbursements totaling $262,100 to determine whether they were properly supported and found 33, totaling $28,100, that lacked adequate detail for the board to complete a claims audit.

Roosevelt Fire District – Length of Service Award Program (LOSAP) (Dutchess County)

The board did not effectively monitor all aspects of the district’s LOSAP. Specifically, the board did not ensure that the LOSAP was annually audited in accordance with state law. During the audit period, the value of the district’s LOSAP assets declined and so the district’s annual contributions had to steadily increase to ensure that there were enough assets to cover all benefits paid to the LOSAP participants and beneficiaries. The board also could not demonstrate that the procurement of LOSAP investment management services was made in accordance with the district’s procurement policy.

Pine Plains Central School District – Lead Testing and Reporting (Dutchess County/Columbia County)

District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law and Department of Health (DOH) regulations. Auditors determined 12 of the 333 water outlets identified at select areas were not sampled or properly exempted by district officials. This occurred because district officials did not have a sampling plan to identify all water outlets for sampling or exemption. Of the 259 water outlets sampled for testing, 50 water outlets exceeded the lead action level. Auditors reviewed 15 of the water outlets with actionable lead levels and determined that all were remediated. Although the director of facilities remediated the water outlets that exceeded the lead action level, he did not have a remedial action plan that documented which water outlets exceeded the lead action level and the remedial actions taken, or which water outlets were exempted from sampling and how they would be secured against use. Because there is no information on the lead levels of the 12 water outlets not sampled for testing, auditors were unable to determine whether officials identified and remediated all water outlets that would have required it.

York Central School District – Lead Testing and Reporting (Livingston County/Wyoming County)

District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law and DOH regulations. Auditors determined 130 of the 223 water outlets identified at select areas were not sampled or properly exempted by district officials. This occurred because district officials did not have a sampling plan or a remedial action plan. Because there is no information on the lead levels of the 130 water outlets not sampled for testing, auditors were unable to determine whether officials identified and remediated all water outlets that would have required it. Of the 74 water outlets the district sampled for testing, three water outlets exceeded the lead action level. Auditors determined district officials took appropriate remedial actions on the three outlets. District officials did not report any laboratory test results for the testing cycle to their local health department, to staff, parents and/or guardians, or through DOH’s Health Electronic Response Data System.

Greenwood Lake Union Free School District – Audit Follow-Up (Orange County)

The review assessed the Greenwood Lake Union Free School District’s progress, as of February 2025, in implementing recommendations from a prior audit, Greenwood Lake Union Free School District – Procurement and Claims Processing (2021M-147), released in December 2021. The audit found district officials did not always procure goods and services in a cost-effective manner or ensure claims were audited for accuracy and completeness. The audit included nine recommendations to help officials monitor and improve the district’s procurement and claims processing procedures. Of the nine recommendations, all were implemented.

Port Jervis City School District – Audit Follow-Up (Orange County/Sullivan County)

The review assessed the Port Jervis City School District’s progress, as of February/March 2025, in implementing recommendations from a prior audit, Port Jervis City School District – Financial Condition (2022M-152), released in December 2021. The audit determined the board and district officials did not effectively manage the district’s financial condition and so it levied more taxes than needed to fund operations. The audit included six recommendations to help officials monitor and improve the district’s financial condition. The district has made some progress implementing corrective action. Of the six audit recommendations, one recommendation was fully implemented, two recommendations were partially implemented and three recommendations were not implemented.