State Education Department

Assessment of Selected Financial Management Practices

We audited the internal controls over equipment inventories, procurement practices and payroll-related activities at the State Education Department. We identified the need for a number of improvements, particularly in the controls over equipment. We found an overall lack of control and management oversight in this area, as inventory records were inaccurate, incomplete, and unreliable as a management tool. We also found that the Department paid its vendors late 35 percent of the time, and did not always update its payroll records in a timely manner. In some instances, the inaccurate payroll records led to salary payments the employees were not entitled to. One such employee was inappropriately paid at a higher rate for more than seven years (the employee stopped working in New York City in 1999, but continued to receive the higher rate of pay associated with that work location until we brought the matter to the attention of Department officials). We made several recommendations for improving controls over the Departmentís financial management practices.

For a complete copy of Report 2006-S-99 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.