By NICK BUGLIONE
The audit, released last Wednesday, cited only a few ³internal control weaknesses² in the school district¹s process of validating expenses. It also found that it didn¹t follow its own travel and meal policies in certain instances, and didn¹t establish when district credit cards and cell phones should be used.
³While auditors found weak financial controls and instances when travel and meal policies were not followed at the East Meadow School District, auditors found no instances of wrongdoing,² New York State Comptroller Alan Hevesi said. ³I urge the Board of Education to take steps to improve internal controls and strengthen its oversight role to ensure that tax dollars are being spent appropriately.²
Following the revelation of financial improprieties in the Roslyn and William Floyd school districts, Hevesi announced in August 2004 that his office would be auditing five local school districts in-depth and 16 others in a capacity that covered only administrative and board expenses, including East Meadow.
It marked the second time East Meadow would be audited in as many years.
In September 2002, the comptroller initiated an investigation into the 2001-02 school year, after receiving numerous complaints from concerned residents about the district¹s fiscal practices. The audit didn¹t yield any substantial improprieties, though it did criticize the district for inappropriate spending on catered meals, unauthorized side trips and airline tickets.
The comptroller decided to audit the district again, this time from July 1, 2002 to Aug. 31, 2004, based partially on complaints his office received from taxpayers that the first report wasn¹t thorough enough.
This recent examination proves allegations of wrongdoing were false, said Superintendent Dr. Robert Dillon. ³The report clearly showed the absence of illegality and dishonesty in the management of taxpayer resources,² he said. ³It authoritatively rejected the false and numerous allegations raised against school board members and administrators by a small group of political malcontents who reside in East Meadow. We are pleased with the report.²
In the audit, the comptroller¹s office identified seven specific complaints it received from taxpayers, including that a board member was on the school district¹s health plan and that the school district paid college tuition for one of the superintendent¹s family members. All of the charges were false, according to the audit.
The report did find, however, that the district¹s internal claims auditor was only checking a random sampling of expenses and purchases to ensure their legitimacy, and wasn¹t documenting which ones he reviewed.
During the audit period, the district spent nearly $67,000 on trips and conferences, but some didn¹t contain detailed receipts and the district was allowing employees to stay in lodging that far exceeded the federal per diem rate, the audit found. For instance, in February 2004, an assistant superintendent stayed in a hotel for $287 a night while at a conference in Hollywood, Fla. The federal per diem rate for lodging in that location at that time of year was $100 a night.
The audit also found that at one time the district¹s meal reimbursements during trips was $118 a day, far lower than the federal standard, which runs between $31 and $51.
After the 2002 state audit criticized East Meadow for spending $82,000 on catered meetings, the district set up a policy that it would only spend $15 per person on food for meetings held during regular mealtimes. But in 10 out of the 48 catered meetings examined, the audit found the limit was exceeded by up to $49 per person.
The audit also detailed that the Board of Education failed to draw up a specific policy on when school officials should use district credit cards and phones.
When considering the size of East Meadow¹s yearly budget, which is $134 million this school year, the audit¹s findings were minuscule, said Deputy Superintendent Leon Campo. ³During the audit period, the district has effectively and honestly managed more than one quarter of one billion dollars in taxpayer resources,² he said. ³At East Meadow, we pursue our profession and school mission with complete honesty and competence. Therefore, we know that only good can result from an audit.²
The district has already implemented some of the measures recommended in the report. It¹s expanding the duties of its treasurer and internal auditor, and the school board has established an audit oversight committee to meet with them regularly.
The board has also adopted a clear policy regarding cell phone and credit card usage. ³The comptroller¹s recommendations which are cost beneficial and practicable have been implemented,² Dillon said. ³Not all suggestions made will be implemented, as some are not viable and others are inconsistent with sound educational philosophy and practice.²
Specifically, the district disagreed with limiting its meal and travel cost allotments. Though its daily meal reimbursement rate has been lowered to $85, it¹s still higher than the federal standard. And while it might be feasible for employees to find cheaper lodging during conferences, those hotels might be miles away from where the workshops and lectures take place, the school district argues.
³We want our employees to participate in conferences for staff development,² Campo said. ³If we adopt the federal per diem, what we would be saying to the employee is ŒYou have to pay the difference.¹²
East Meadow resident Jonathan Laicko expressed dismay at the district¹s unwillingness to implement all of the audit¹s recommendations. ³It¹s unacceptable that the superintendent thinks he can eat whatever he wants on other people¹s dime and not negotiate with our teachers,² he said, referring to how East Meadow teachers are still working without a contract.
³When people are eating macaroni and cheese for lunch, he¹s going to eat Peter Luger¹s?² said Bill Alderman, an East Meadow parent. ³Not at my expense you¹re not.²
Comments about this story? NBuglione@liherald.com or (516) 569-4000 ext. 236.
