Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Hoosick Falls Central School District – Electronic Fund Transfers (2012M-71)


Released: June 8, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the District's internal controls over electronic fund transfers for the period July 1, 2011, to February 29, 2012.

Background

The Hoosick Falls Central School District is located in the Towns of Grafton, Hoosick, Petersburgh, and Pittstown in Rensselaer County, and White Creek in Washington County. The District is governed by the Board of Education which comprises seven elected members. The District's budgeted expenditures for the 2011-12 fiscal year are $ 19.9 million.

Key Findings

  • The Treasurer initiates each electronic fund transfer, receives the confirmation, records the transaction into the general ledger by hand and at the end of each month makes general journal entries in the financial management system with the monthly totals. He then reconciles the bank accounts. The only confirmation of electronic fund transfers from the bank to the District during our audit scope was sent electronically via e-mail to the Treasurer. The Business Administrator initialed electronic fund transfer documents but we could not determine if the approval was prior to the transfer because they are not dated. We reviewed 40 electronic fund transfers from our scope period totaling $10.5 million, and verified the propriety of each transaction. Our testing did not identify any improprieties.
  • The month end journal entries were not reviewed by the Business Administrator for, on average, a month after the transaction, and bank reconciliations were not reviewed for up to a three month period.

Key Recommendations

  • Revise its written policy regarding electronic fund transfers to ensure the duties of authorizing, initiating, and recording electronic fund transfers are adequately segregated. Require that confirmations are made verbally from the bank to the Business Administrator and date approvals showing the authorization of the electronic fund transfer.
  • Require that bank reconciliations are performed by someone other than the Treasurer.

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