State Comptroller Thomas P. DiNapoli announced that his offi
ce recently completed audits of the Levittown Union Free School District, Amityville Union Free School District, Manhasset Union Free School District and several other schools.
DiNapoli has made it a priority to audit school district, BOCES and charter school finances and operations to ensure money is being spent appropriately and effectively. The audits are designed to help schools improve their financial management practices and ensure proper policies and procedures are in place to protect taxpayer dollars from waste, fraud and abuse. New York’s school districts annually spend approximately $60 billion in federal, state and local funds.
Levittown Union Free School District in the case of reserve funds and extra classroom activity fund was highlighted. The board and district officials did not appropriately establish and maintain reserve funds. The district had five reserves as of June 30, 2015 with an unemployment insurance reserve at a balance of $2.9 million. However, district officials are unable to find a resolution establishing this reserve, and it is overfunded. The current balance in the unemployment insurance reserve could pay for unemployment insurance costs for more than 27 years.
In addition, the employee benefit accrued liability reserve (EBALR), has a balance of $6 million. However, the EBALR is not needed because the district does not have a liability for compensated absences. Further, DiNapoli previously recommended that the district consider using the EBALR surplus when planning its future budget. The board and district officials also need to improve controls over extra-classroom activity funds. Club officials did not maintain adequate supporting documentation, such as duplicate pre-numbered receipts, for cash collections totaling $38,377.
For additional background or a comment on a specific audit, contact the press office at 518-474-4015.
—Submitted by the New York state comptroller’s office
