By JUDY RATTNER
New procedures set after state found weak credit card, computer controls
The Office of the New York State Comptroller has released the findings of an audit of the Rockville Centre Union Free School District, posting its report on the comptroller's Web site Dec. 31.
The state auditors, who conducted their examination in the district from Jan. 31 to March 13, 2007 did an initial assessment of the district's overall business operations, and then focused on the few areas where they felt weaknesses existed. They found no evidence of fraud, but the audit, which covered the period between July 1, 2005, and Dec. 31, 2006, detailed problems with the use of credit cards by district employees, and with user access, passwords and the lack of a formal disaster recovery plan for the district's computer systems.
Auditors discovered that district employees did not always submit receipts for gasoline purchases, in accordance with district policy, and district officials did not monitor gasoline use. Gas cards had been issued to 12 members of the maintenance staff and four night-security employees. The auditors examined eight claims containing 407 gasoline purchases totaling $12,525, and found that 58 percent were missing the required signed receipts. They said district officials did not give them an explanation of why the receipts were missing or why the district had not monitored gasoline use.
Auditors also found problems with the use of a hardware store card by the Building and Grounds director, and discovered that officials did not require employees to sign credit card receipts to indicate that goods were received at various locations in the district. The auditors examined six claims containing 14 charges totaling $3,425. Although receipts were attached, there were no signatures to indicate that a district official or employee had actually received the purchased items.
The report indicated that auditors had discussed their findings with district officials who agreed with the recommendations to fix the problems that were uncovered. On its Web site, which provided a link to the comptroller's report, the school district described the audit as "very thorough" and "helpful."
In a Dec. 11 letter to the comptroller's office that was included in the audit report, school superintendent Dr. William Johnson said the district agreed with the auditors' findings on gasoline credit cards and the hardware store card, and that employees had been instructed to submit receipts and record mileage. Johnson's letter also stated that the assistant superintendent for business and personnel now reviews each gasoline credit card statement for receipts and monitors gasoline use and purchases.
As of July 1, all receipts for the hardware store credit card were to include a description of the project necessitating the purchase, as well as the signatures of both the purchaser and a district employee, to verify the need for and use of the purchase.
In his letter, Johnson wrote that the district is "confident that all credit card findings have already been addressed and no further corrective actions should be necessary."
The letter also stated that when the district implements new accounting software, which it expects to do by July, it will address user access and passwords. Audits of vendor and personnel changes are now being done on a monthly basis. And although there are no formal written policies or procedures for disaster recovery, the district says the entire software system is backed up every day and the information is stored off-site. Johnson wrote that a comprehensive disaster recovery plan should be completed by July 1.
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