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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Rensselaer City School District – Internal Controls Over Extra-Classroom Activity Funds (2013M-153)


Released: September 6, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the internal controls over extra-classroom activity funds for the period July 1, 2011, to February 28, 2013.

Background

The Rensselaer City School District is located in the City of Rensselaer in Rensselaer County. The District is governed by the Board of Education which comprises five elected members. During 2011-12, the District’s extra-classroom activity fund recorded $72,645 in receipts and $70,470 disbursements.

Key Findings

  • The Board established a policy for the activity fund, but is not adequate because it does not provide detailed procedures for the financial management and recordkeeping of the activity fund or for closing inactive clubs.
  • The District has an internal auditor who provides training on extra-classroom activity funds to other school districts; however, this training has not been provided to the District’s central treasurer or faculty advisors.
  • The District’s internal auditor audited the activity fund and noted weaknesses related to a lack of training, poor recordkeeping and the failure to close inactive clubs. The District did not take action to correct these weaknesses.
  • We reviewed 27 remittances totaling $13,188 to determine if they were properly documented by both the student treasurer and central treasurer and found that none of the 27 receipts were adequately documented.
  • We reviewed 22 disbursements totaling $16,736 to determine whether the proper documentation was present in the student treasurer’s and central treasurer’s records. None of the 22 disbursements were adequately documented.

Key Recommendations

  • Adopt adequate policies and procedures for extra-classroom activities, including procedures for record keeping, closing out inactive clubs and disposing of the related moneys.
  • Ensure the central treasurer and faculty advisors are properly trained, following the requirements for extra-classroom activities, and maintaining adequate and appropriate accounting records.
  • Take action to correct weaknesses identified as a result of the internal auditor’s audit of the activity fund.
  • Ensure that student treasurers maintain appropriate accounting records for all receipts and disbursements.

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