By Jeff Lipton
The audit report by the state comptroller's office examined Sewanhaka's financial controls for the 2005-06 school year. The report stated that 21 of the professional services provided were not approved by the school board and in eight instances, totaling $355,554, the professional services were rendered without a contract, according to the state report released last Thursday. Professional services include areas such as psychiatric counseling and therapy.
"The lack of competition in the procurement process leaves the district without adequate assurance of obtaining the most economical professional services," the audit report stated.
The lack of proper internal financial controls means that the district may not be receiving the best services at the best available prices, the report added.
In addition, the report stated that since the services were provided without the proper paperwork, "the board does not have adequate assurance that the services are necessary and appropriate."
The district is also at risk for unauthorized changes to its accounting records because the duties of the financial software administrator and the senior accountant are not properly separated, the audit report stated.
The report also called into question the security of the district's computer system, exposing "the district to risk of loss or misuse of data and costly disruptions to district operations."
In addition, the district disposed of certain land, including the old middle school building, without recording it in the district's financial statements. As a result, the district's reported values for land and buildings were not appropriately reduced and fixed assets were overstated for 2004-05.
Sewanhaka Central High School District officials could not be reached for comment, but in the report, district officials said they plan to take corrective action based on the report's recommendations.
The high school district includes Elmont, Carey, New Hyde Park, Sewanhaka and Floral Park. The five district high schools enroll a total of roughly 8,600 students and have 1,200 employees. The district's budgeted expenditures for 2006-07 were $134,022,079, funded primarily with real property taxes and state aid. Expenditures for 2005-06 were $122,621,689.
Comments about this story? Jlipton@liherald.com or (516) 569-4000 ext. 210.
