By:Nicole Falco
The Central High School District is now soliciting proposals for an independent internal auditor who would report directly to the Board of Education, according to Al Chase, deputy superintendent for finance and operations. District 13 has employed an internal auditor, Robert Levine of J.H. Cohn, for the past five years. Districts 24 and 30 say they have not ruled out the possibility of doing the same.
An internal auditor would be authorized by the board to approve warrants or requests for payment. Only after approval would the treasurer be authorized to issue a check. In lieu of an internal auditor, the board is responsible for giving the final OK on all warrants.
"What happened in Roslyn is a tragedy," said Lawrence McGoldrick, District 30's superintendent of schools. "Any time money is diverted from the kids, it's just wrong."
Immediately after the Roslyn scandal, the New York State Association of Superintendents sent letters to districts that included tips to help safeguard against internal fraud. After reviewing those tips, McGoldrick said, "We've asked ourselves, 'Do we do this?' or 'Do we do that?'"
All four Valley Stream districts maintain similar systems of checks and balances when it comes to handling residents' money. In simple terms, "There is never an instance where just one person is responsible for approving, signing and issuing checks," according to Dan Onorato, District 24's assistant superintendent.
Dr. Elizabeth Lison, District 13 superintendent, agreed. "We never have just one person looking at anything that we do," she said.
Before a purchase order is ever processed or a check is cut in all four districts, it must first be approved at the school - and district - levels. Then the board or internal auditor gives the final authorization before the treasurer is allowed to make a payment. When purchase orders are fulfilled, they are cross-referenced against the original request by a number of district employees to make sure they match.
"[In Roslyn] it seems as though there was one person who was in charge of everything," Onorato said. "When you have one person who is in control, to me, it would make it very easy for them to get by."
All four Valley Stream districts also employ an external auditor, as per state law. The three elementary districts use Miller, Lilly & Pearce, while the high school district uses Coughlin, Foundotos, Cullen & Andoski. External auditors review the districts' books at least once a year, and make sure districts are using their money appropriately and according to budget allocations.
Both District 13 and the high school district employ an outside treasurer, R.S. Abrams. The treasurer handles transfers between accounts and issues checks, except for payroll checks.
"We try to treat [residents'] money as if it were our own in the sense of safeguarding it," McGoldrick said.
When one of the districts receives a check, the person who opens the mail is not the same person who ultimately deposits the check. Chase said that checks are received by the business secretary and logged. They are then passed to the accounting department, where they are prepared for deposit. A messenger is sent to make the deposit and is responsible for bringing back a deposit slip.
"We have a nine-person staff in the business office," Chase said. "Because we have that number of people, it's a bit easier for us to segregate duties than it may be for another school district that is not of a comparable size."
Chase said that the high school district plans to discuss its accounting practices during its September Board of Education meeting. He will explain how checks are processed and how new hires are processed, and answer community members' questions.
"Residents may have in the back of their minds, 'Is everything OK with my school district?'" Chase said. "The last thing I want is for someone to say, 'Are they doing the right thing?' I have a lot of pride in what I do, and my staff has a lot of pride in what they do. I'm a Valley Stream resident, and many people in my office are Valley Stream residents. That means a lot when it comes to looking at things."
Auditors and residents aren't the only ones interested in district finances. In response to the scandals and at the urging of public officials, including Nassau County District Attorney Denis Dillon, the state comptroller's office announced that it would be auditing five Long Island districts. State Comptroller Alan Hevesi will name the districts Aug. 1. In addition, the comptroller unveiled a plan that calls for the auditing of every district every five years and random auditing by external auditors.
"I think it's a great idea," Onorato said. "If you're doing what you're approved to be doing and your purchases are appropriate, then it should be fine."
