DOWNSVILLE - The New York State Comptroller’s Office released the results of an audit of the Downsville Central School District Nov. 18, which showed the school failed to follow its procurement policy, authorized and approved payment of claims after payments were made and approved a claim for payment that had already been paid.
The audit covered the period of July 1, 2020 through March 31, 2022 to determine whether school officials properly audited claims before payment.
The comptroller’s office found that claims were not always properly audited prior to payment, after reviewing 150 claim packets totaling $870,798. Of the reviewed claims, state auditors found claims totaling $700,507 were not properly audited, including: 69 claims, including credit card purchases, totaling $275,846 which were audited after the checks had cleared the bank and a claim packet approved for payment totaling $13,613 which had previously been paid.
The audit revealed that 28 claims, 36%, totaling $260,631, and 127 credit card purchases, 43%, totaling $15,215 were paid before they were audited and approved by the claims auditor.
Because staff may have mailed more checks before claims were audited and approved by the claims auditor, the number might be higher, the audit said.
School officials also failed to follow the district’s procurement policy requiring a minimum number of quotes or bids in awarding nine bids without the required number of bids/quotes totaling $18,628.
To remedy the issues going forward, auditors recommended school officials mail checks for claims or bills after bills or claims have been approved by staff and make sure all bills or claims have supporting documentation prior to approval of payment.
In response to the audit, Superintendent Robert Rhinehart said the collegial nature of the audit provided the district with valuable information which allowed the district to implement processes to address the auditor’s concerns, in a letter dated Nov. 4. A new claims auditor, hired by the district in July 2022, has received comprehensive training in the processing of claims, which has resulted in improvements.
Downsville Central School serves the towns of Andes, Colchester, Hamden, Hancock, Tompkins and Walton in Delaware County, and is governed by an elected five-member board of education which is responsible for the general management and control of the district’s financial and educational affairs. The superintendent is the chief executive officer and, along with other administrative staff, is responsible for day-to-day management under the board of education’s direction.
To review the audit in its entirely click here.
