Roxbury Central School District - Health Insurance Buyouts (2019M-89)

Issued Date
August 09, 2019

[read complete report - pdf]

Audit Objective

Determine whether District payments for health insurance buyouts were cost-effective, supported by collective bargaining agreements and correctly calculated.

Key Findings

  • Health insurance buyouts may have saved taxpayers approximately $100,066 during our audit period.
  • Three employees received $34,738 in health insurance buyouts that they may not have been entitled to during our audit period.
  • The health insurance buyout calculations are not reviewed before payment.

Key Recommendations

  • Consult with District legal counsel about the intent of the health insurance buyouts outlined in the CBAs and determine whether changes should be made to the buyout calculations.
  • Review and approve the health insurance buyout calculations before payment.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action. Appendix B includes our comments on issues raised in the District’s response letter.