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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts


Fulton City School District – Non-Payroll Cash Disbursements (2017M-144)


Released: October 13, 2017 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine whether District officials established a sufficient segregation of duties or compensating controls for non-payroll cash disbursements for the period July 1, 2015 through March 31, 2017.

Background

The Fulton City School District is located in the City of Fulton and the Towns of Granby, Minetto, Oswego, Palermo, Scriba and Volney in Oswego County. The District, which is governed by an elected seven-member Board of Education, has approximately 3,500 students. Budgeted appropriations for the 2016-17 fiscal year totaled approximately $70.4 million.

Key Findings

  • District officials established effective controls over non-payroll cash disbursements by segregating duties and providing management oversight, so that no individual controls all phases of a transaction.
  • District officials allow third party administrators (TPAs) who process health, dental and prescription claims on the District’s behalf to electronically withdraw funds from a District bank account.

Key Recommendation

  • The Board should not allow TPAs to withdraw funds from the District’s bank account. The Treasurer should transfer moneys to the TPAs for the total amount payable in satisfaction of claims audited and approved by the TPAs.

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