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NYS Comptroller


Audits of Local Governments and School Districts

Albany City School District – Separation Payments and Information Technology (2012M-251)

Released: February 22, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the District’s calculation of separation payments and information technology for the period July 1, 2011, to August 31, 2012.


The Albany City School District is located in the City of Albany, Albany County. The District is governed by the Board of Education which comprises seven elected members. Budgeted general fund expenditures for the 2012-13 fiscal year are approximately $208 million, and are funded primarily with real property taxes and State aid.

Key Findings

  • During the audit period, 32 employees left District service and received separation payments totaling $722,738. Generally, District officials calculated the correct amount for separation payments provided to the employees leaving District service. Except for two minor exceptions, which we discussed with District officials, we found that the District has designed appropriate internal controls over employee separation payments and those controls are operating effectively.
  • In 2010, District officials developed a disaster recovery plan; however, the Board has not formally adopted the plan. Also, the plan does not sufficiently address all necessary components and does not contain the level of detail necessary to ensure that the computer system could be restored in a timely manner. We also found that the District has not tested the plan to ensure that it can be implemented in emergency situations and that management and staff understand how it is to be executed. Finally, we found that all employees were not made aware of the plan.

Key Recommendations

  • Accurately calculate separation payments in accordance with the provisions in employee contracts or Board resolutions, and provide for the payment for all applicable unused leave time.
  • Review the disaster recovery plan and modify it to include all of the components of an effective plan. Distribute the plan to all responsible parties and periodically test and update the plan.

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