By Andrew Hackmack
At the October Board of Education meeting, a review of the external audit was presented by Alan Yu of Coughlin, Foundotos, Cullen and Danowski. District 30 received the highest possible ranking, a "clean opinion."
In November, the Board of Education heard the internal audit report. This was presented by Ernie Smith and Lauren Agunzo of Nawrocki Smith, and the district again got high marks. "The internal controls here in this district are very good," Smith said, adding that there is strong and effective leadership in District 30.
Edward Cullen, assistant superintendent for business, said these reports validate the hard work by district officials to maintain fiscal health. He explained the roles of the various auditors in monitoring the district's finances.
The external auditors focus on the financial statements of the district. They look at the various reserve accounts to make sure all are well funded, and they review various financial practices. Cullen explained that the role of the external auditors is to provide the Board of Education with an accurate picture of the district's financial well-being and recommend areas for improvement.
"The external auditors feel that the district has a good handle on the many things that a district needs to do to be in compliance," Cullen said.
The district has five separate reserve accounts, all for various financial needs. The newest is a capital reserve fund, which was approved by voters and allows the district to maintain an account not to exceed $4 million for a maximum of five years, for the purpose of funding capital improvements.
The fund balance maintained by the district comes from money left over from a previous year's budget. State mandates say that a district cannot carry over more than 3 percent of the following year's budget. Cullen explained that this is a protection for taxpayers, so a school district isn't collecting excess money that isn't being spent, yet has enough of a reserve for a "rainy day." Audit reports show that the district's fund balance is under the threshold, at 1.7 percent.
The internal audit is an in-depth look at the district's financial practices, policies and procedures. The actual financial state of the district is not reviewed in this audit. "If you don't have proper internal controls," Cullen said, "it can lead to problems."
While the internal and external audits are done annually, claims audits are done on a regular basis, roughly every two weeks. The district uses the firm R.S. Abrams to monitor its claims, which are essentially its bills. Cullen said that no bills are paid until the claims auditors review and approve them.
New York state mandated many new financial controls for districts in the wake of a scandal in Roslyn several years, where several administrators were found to have bilked the district out of millions of dollars. Cullen said the financial controls in place in District 30 make that an impossible scenario. Because of the policy that all bills must go through a claims auditor, he said, the district has a watchdog in place to oversee the spending of even the top administrators.
Cullen also explained that the district has a very strict purchasing procedure, in which a supervisor, the assistant superintendent and the superintendent much approve any purchase. As for conferences, no trips are approved without detailed information, including what the costs will be. Also, Cullen said, he meets annually with the staff at each school to review the district's financial policies and procedures.
"I'm confident that the things we do here are the things that all school districts should be doing," he said. Although some of the state mandates have been unfunded, Cullen does not see them as a burden. "Anything we can do to further improve our controls and our practices are welcomed."
Cullen said the Board of Education is fiscally conservative and mindful of the tax burden, and consistently monitors the district's spending and revenue status.
Another contributing factor to the district's high marks, Cullen said, is the dedicated people in the business office. "We have some very fine people that perform many different duties," he said. "We all work together as a team. That's one of the reasons why we're so successful."
Comments about this story? AHackmack@ liherald.com or (516) 569-4000 ext. 265.
