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NYS Comptroller


Audits of Local Governments and School Districts

Riverhead Charter School – Fiscal Monitoring, Leave Accruals and Information Technology (2012M-164)

Released: December 14, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine whether the Board provided adequate oversight of the School's financial operations and to assess the internal controls over leave accruals and access to the financial software for the period July 1, 2010, to December 31, 2011.


The Riverhead Charter School is located in the Town of Riverhead and is governed by the Board of Trustees, which comprises seven members. The School's 2010-11 fiscal year operating expenditures totaled approximately $3.5 million.

Key Findings

  • The Board did not approve the 2011-12 annual budget by June 1, 2011 as required, and the Director did not make any amendments to the budget to reflect variances in revenues and expenditures during the year.
  • The Board did not receive and review quarterly balance sheets, budget-to-actual reports, or monthly cash receipts reports.
  • Leave accrual balances maintained by the payroll clerk were not reviewed for accuracy or reconciled to leave balances on employees' pay stubs after processing by the School's payroll vendor.
  • The School's financial software application has one user account and does not require the use of a password.

Key Recommendations

  • Approve the budget by June 1 of the previous fiscal year and review and approve any necessary changes and/or amendments to the budget.
  • Provide the Board with monthly balance sheets, statements of activity, budget-to-actual status of revenues and expenditures, and cash receipts reports.
  • Establish written procedures to address the maintenance of leave time records and ensure that accurate information for time accruals is maintained, monitored, in accordance with appropriate contracts and/or policy, and periodically reconciled. Make payments for unused leave time only after proper approval and verification of accrual balances based on adequate supporting records.
  • Establish unique user IDs and passwords.

Local Government and School Accountability Contact Information:

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