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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Glens Falls Central School District – Internal Controls Over Claims Processing (2011M-273)


Released: March 9, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the District’s internal controls over claims processing for the period July 1, 2010 to September 20, 2011.

Background

The Glens Falls City School District (District) is located in the City of Glens Falls and the Town of Queensbury in Warren County. The District is governed by the Board of Education (Board) which comprises nine elected members. The District’s budgeted expenditures for the 2011-12 fiscal year were approximately $38.5 million.

During our last audit of the District, we found weaknesses with controls related to the processing of claims. Subsequent to that audit, the Board delegated the responsibility of auditing claims to a claims auditor and as a result, the District’s internal controls over claims processing have improved.

Key Finding

  • The District did not take full corrective action. The District continued to utilize an inadequate practice for processing and paying claims prior to audit. According to District officials, they have an informal policy to pay certain claims prior to audit each month to meet payment deadlines; however, not all of these payments are allowed by Education Law to be paid prior to audit.

Key Recommendation

  • Ensure that no claim against the District, other than those allowed under Education Law, is paid prior to audit and approval by the claims auditor.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236