Auditors Find Weaknesses
Auditors Find Weaknesses
State auditors reviewing the Sag Harbor School District’s before-school and after-school elementary care program have reported weaknesses in record-keeping, financial oversight, and the segregation of duties among administrators.
In a report released last week covering district operations from July 1, 2014, through Dec. 31, 2015, auditors called for the district to better regulate the program. “Because district officials did not provide proper oversight, there is an increased risk that errors and irregularities could occur and remain undetected and uncorrected,” they said.
Among the findings was the discovery that a tiered tuition system for the before-school program had been developed by the program director without approval from the school board; that inconsistent tuition fees had been charged to families participating in the reduced-price milk program, that attendance records had not been maintained for the morning program, and that hundreds of dollars in late tuition went uncollected for several weeks.
During one six-week period from Sept. 9 to Oct. 31, 2015, auditors found 21 families had amassed combined late fees totaling $1,215. Two of the families were not properly registered for the program, and the attendance records did not always agree with the payment records. One deposit reportedly remained unaccounted for in a clerk’s drawer for 161 days.
Auditors also faulted the school board for not providing enough guidance to administrators. “The director was not provided with specific guidance on how to appropriately carry out her job duties,” the report reads. “As a result, district officials do not have adequate assurance that the correct fees are being charged and collected for all children who attend the program or that the rules specified in the application and rates charged are consistently applied.”
Among their recommendations, auditors suggested the district adopt standard policies and fees, improve attendance and financial record-keeping, and establish checks and balances by dividing responsibilities among different staff members.
In a response letter to the state, Katy Graves, the district superintendent, said the audit’s findings and recommendations “will allow us to improve and strengthen the internal controls over the program’s operations.”
“District administrators and staff have made many improvements to the program along the way but also recognize the need to improve the oversight of the program’s financial operations,” she wrote. “We will work hard to develop a corrective action plan that addresses all the findings and recommendations contained in the audit report.”
Sag Harbor Elementary’s after-school care program was established about 30 years ago, and the morning care program was added in 2012. According to the comptroller’s report, during the 2014-15 school year, the programs took in $62,717 and spent $60,176. Close to 100 children from more than 80 families participated in the program during the time period examined in the audit.