Report of Regents Audits/Budget and Finance Committee to The Board of Regents
The Regents Committee on Audits/Budget and Finance met as scheduled today, March 11, 2014. Chancellor Tisch, Regents Dawson, Phillips, Tilles, Cottrell, Tallon, Bendit, Cea, Young, and Norwood were in attendance.
Items for Discussion
New York State Single Audit - State Education Department Findings
Senior staff from the accounting firm of KPMG presented the Committee members with the results of the 2012-13 New York State Single Audit for the State Education Department. The Department paid $3.2 billion in federal funds to grant sub-recipients during the audit period. The required audit examined compliance with regulations as well as the adequacy of Department controls. There were eleven audit findings. The findings were described by the auditors and Department staff discussed corrective actions that have been undertaken.
The Internal Audit Workgroup reviewed the 19 audits that are being presented to the Committee this month. All 19 were issued by the Office of the State Comptroller (OSC). Seven audits were of school districts, ten were of charter schools, one was a college and one was a NYC Department of Education high school.
The findings were in the areas of budgeting, financial reporting, procurement, conflict of interest, payroll, enrollment and billing, and board oversight.
2014 Fiscal Report
Our Chief Financial Officer briefed the Members on the Fiscal Report for February. Extensive spending controls continue for all funds. General Fund spending reflects the amounts appropriated in the 2013-14 enacted budget. General Fund accounts are in structural balance with the exception of the Tenured Teacher Hearings (TTH) account. The 2013-14 budget includes a $6 million appropriation for TTH claims, an increase of $2.2 million from the prior year. With these additional funds, the deficit at the end of 2013-14 is projected to be $880,000. Special Revenue accounts are all in structural balance on a current year basis and the accumulated negative balance in the Cultural Education Account is being reduced by approximately $3.7 million.