THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

 

TO:	The Honorable the Members of the Board of Regents
FROM:	Michael Abbott
COMMITTEE:	Audits
TITLE OF ITEM:	Audit Activities
DATE OF SUBMISSION:	January 28, 2004
PROPOSED HANDLING:	Discussion
RATIONALE FOR ITEM:	Enable the Board of Regents to review audits
STRATEGIC GOAL:	5
AUTHORIZATION(S):

 

SUMMARY:

 

The following materials are attached.

 

·       Roadmap

·       Minutes of December Meeting (Attachment I)

·       Audit Report Abstract (Attachment II)

·       Audit Report

 

 

 

 

 

Attachment I

 

MEETING OF THE REGENTS SUBCOMMITTEE ON AUDITS

December 11, 2003

 

Subcommittee Members in Attendance:

 

Regent Geraldine D. Chapey, Chair

Regent Arnold B. Gardner, Vice Chair

Regent Joseph E. Bowman

Regent Harry Phillips, 3^rd

 

Discussion Items

 

Regent Chapey opened the meeting by commenting that over the past several years a good base of fiscal responsibility has been established in the school accounting field and that Lonnie Palmer has been named Director of Advisory Solutions of the New York State School Boards Association.  Advisory Solutions offers administrative consulting services to enhance school districts’ organizational effectiveness.  Regent Chapey also reminded the members of their responsibilities under Regents goal number 5; “Resources under our care will be used or maintained in the public interest.”

 

Previous Meeting Minutes

 

The Subcommittee approved the minutes of the prior meeting.

 

Old Business

 

Rose Johnson of VESID responded to questions raised at the last meeting about the audit of State Aid for Integrated Settings by the Office of the State Comptroller.   OSC targeted school districts with problems; therefore the audit results may not be replicated throughout the State.

 

Audits

 

OAS staff were available to answer the Regents questions on the following audits:

 

• Freeport Union Free School District Management (SD-1201-3)

·         Liberty Central School District Management Review (SD-0403-5)

·         Monroe-Woodbury Central School District (SD-0403-6)

·       Jefferson-Lewis-Hamilton-Herkimer-Oneida Board of Cooperative Educational Services (BOC-0600-7)

 

There was a brief discussion about dropout data and the accountability measures required by the No Child Left Behind Act and used by SED.

 

Jim Conway stated that OAS was doing management control reviews, which led to a discussion of types of audits performed and that a new two-year audit plan would be presented to the Subcommittee members in June/July.

 

The members of the Subcommittee also discussed a letter from the Attorney General to SED concerning new accounting regulations.  The Subcommittee members stressed the need for more resources for OAS with the announcement that one AIC had left to take a position at SUNY.

 

Monitoring School Districts’ Fiscal Data

 

Staff presented the members with information on school districts’ financial statements received to date and some of the issues associated with school districts in financial stress. In February a list of schools in financial stress will be provided denoting which school districts are new to the list.

 

 

 

Attachment II

 

Audit Report Abstract

Regents Subcommittee on Audits

February 2004

 

Office of Audit Services
Audit	Major Finding	Recommendations/ Response
Western Suffolk BOCES Preschool Program   An audit conducted by the Office of the Comptroller, County of Suffolk and Approved by the State Education Department Pursuant to Education Law Section 4410   10th Judicial District	$2,662,325 adjustment   The audit examined three years of operations beginning with July 1, 1992 and ending with June 30,1995. The audit adjustments resulted primarily from costs that were reported twice, were not substantiated by School records, and were incorrectly allocated between user programs. In addition, some expenses were over reported due to the accumulation of self-insured fund reserves, were non-program related or were not in compliance with the requirements of the Department's Reimbursable Cost Manual.	The results of this audit will be used to establish the tuition rates. The BOCES has ceased operations as a provider of services for preschool children with disabilities effective September 1, 1999.   The BOCES has declined to issue a final response to the audit.