Finding Text
2022-001 Oversight of Cash Disbursement ProcessCriteria: Standards for Internal Control in New York State Government (March 2016) issued by the New York State Comptroller are expected to be adhered to by all governmental agencies in New York State, including school districts. The standards are based on the framework developed by COSO, the Internal Control-integrated framework (the Framework). Principle 3 of the framework states that management establishes, with board oversight, structures, reporting lines, and appropriate authorities and responsibilities in the pursuit of objectives.Condition: Throughout 2021-2022 the District inadvertently remitted 29 duplicate checks to vendors approximating $30,800.Cause: Invoices were entered into the District?s financial software using extra characters such as dashes, periods or zeros allowing the invoices to be processed twice. The District?s claims audit process and standard review procedures did not include steps to identify the duplication.Effect: The District duplicated payments to vendors of approximately $30,800 throughout the 2021-2022 school year.Recommendation: We recommend the District review and enhance its current policies and procedures surrounding the cash disbursement process, including training for personnel and claims auditor to strengthen internal controls over disbursements.Views of Responsible Official and Planned Corrective Actions: The District will provide accounts payable training to the accounts payable clerk, claims auditor, and any other individuals involved in the process. In addition the district will review the purchasing policies to ensure they are providing the internal controls necessary to protect the district's funds, and that they are being followed. The District will also enhance the use of purchase orders, and become less dependent on claims forms when possible.