A recent series of audits by New York State Comptroller Thomas P. DiNapoli exposes critical oversights and financial mismanagement across several municipalities and school districts.

New York State Comptroller Thomas P. DiNapoli today released audits for several local governments and school districts, uncovering a range of financial management issues. The findings highlight lapses in record-keeping, internal controls, and policy adherence.

Town of Keene – Records and Reports (Essex County)

The audit revealed that the supervisor of Keene failed to maintain complete, accurate, and timely accounting records. This resulted in unreliable records, inaccurate account balances, and unreported revenues and expenditures. Specifically, 12 out of 20 journal entries reviewed were either improperly recorded, unsupported, or untimely. Additionally, there was a significant discrepancy between adjusted bank balances and general ledger cash balances in 55 of 133 bank reconciliations. The board also neglected to annually audit the supervisor’s records as required.

Town of Bergen – Town Supervisor (Genesee County)

While the supervisor of Bergen maintained generally accurate records, the audit indicated a lack of adequate oversight. The supervisor did not submit sufficient accounting records for board audit and approved bank reconciliations without proper verification, resulting in a $747,000 cash overstatement in the 2022 Annual Financial Report (AFR). There was also a failure to review journal entries and financial transactions periodically, allowing the accountant to record transactions without oversight.

North Babylon Union Free School District – Online Banking (Suffolk County)

The audit found that while online banking transactions were appropriate, the district lacked essential controls to secure these transactions. The board and district officials did not enter into a sufficient written agreement with their bank or adopt an online banking policy. Additionally, employees conducting online banking lacked cybersecurity awareness training, and the district’s acceptable use policy was inadequate and poorly communicated.

Whitney Point Central School District – Information Technology (Broome County)

Whitney Point’s audit exposed significant IT management weaknesses. District officials failed to manage nonstudent network user accounts properly, adopt an IT contingency plan, or keep track of network users, increasing the risk of operational disruption and communication breakdown during a crisis. Furthermore, 19 nonstudent network user accounts remained active despite being unused for over five years.

KIPP Troy Prep Charter School – Resident Tuition Billing and Collections (Rensselaer County)

KIPP Troy Prep accurately billed and collected resident district tuition for the reviewed sample. However, the school did not deposit collections totaling $5.5 million within the required three days, as stipulated by policy. This delay restricted access to funds and heightened the risk of loss or theft.

South Jefferson Central School District – Payroll (Jefferson County)

The audit reviewed salaries and wages paid to 40 employees and payroll change reports for 76 employees, totaling $471,526 and $126,395, respectively. Except for minor discrepancies, the salaries and wages were accurately paid, and payroll increases were correctly calculated and supported by adequate time records.