New York State Comptroller Thomas P. DiNapoli announced the release of several audits of local governments and school districts, highlighting issues in procurement, financial management, and compliance with state regulations on lead testing in water outlets.
In one town audit, officials did not follow board policy or statutory requirements when procuring goods and services. This lack of adherence meant that officials could not show all purchases were made cost-effectively, possibly increasing operational costs for taxpayers. The audit found that competition was not sought or documentation maintained for 28 purchases totaling $745,372. Additionally, 48 claims worth $299,716 were not properly audited before payment, and 226 credit card transactions amounting to $54,359 lacked receipts or itemized invoices.
A school district previously reviewed in February 2017 showed no progress on implementing corrective actions when auditors returned in July 2024. Of three recommendations from the earlier report, two had not been implemented and one was deemed not applicable during the review period. Additional deficiencies were found in accounting records and procedures.
The audit determined that the board did not ensure timely deposit of district collections or proper authorization of disbursements. Twelve collections totaling $425,202 were deposited an average of 154 days late; two deposits worth $22,143 were more than a year and a half late. Eight collections totaling $24,453 were inaccurately recorded; eleven claims for $130,435 were paid without board approval; and twenty-six claims totaling $19,479 lacked adequate documentation. The treasurer’s reports to the board understated cash by $53,424 compared to bank accounts. Bank reconciliations contained questionable items and were neither provided to nor reviewed by the board. Financial records required for annual audits were also not submitted as needed.
Several school districts failed to comply with state law and Department of Health regulations regarding lead testing in potable water outlets:
– In one district, 39 out of 312 water outlets (13%) at select areas went untested or unexempted due to incomplete sampling plans. Of the tested outlets (470 total), 120 (26%) exceeded lead action levels; nearly half of those reviewed had no retesting or controls to prevent use for cooking or drinking.
– Another district did not sample or exempt 24 out of 197 water outlets (12%). Documentation was lacking on notification about test results indicating that some outlets exceeded lead action levels.
– A third district failed to sample or exempt over half its identified water outlets but reported all results within required timeframes.
– In other cases across multiple districts: up to 75% of identified water outlets went unsampled or unsecured against use; dozens remained above acceptable lead levels without remediation; notifications to health departments and stakeholders often fell short; postings on websites about results lagged behind requirements.
“Town officials did not procure all goods and services in accordance with board policy and applicable statutory requirements,” according to the Comptroller’s announcement.
“We conducted an audit of the district’s financial management procedures… Based on our review, the district made no progress in implementing corrective action,” stated DiNapoli’s office.
“Our audit determined that the board did not ensure that the treasurer was properly accounting for district collections… Auditors determined that 12 collections totaling $425,202 were not deposited in a timely manner…” read another section from DiNapoli’s findings.
“District officials did not properly identify, report or implement needed remediation to reduce lead exposure in all potable water outlets as required by state law…” continued several portions describing failures across different school districts.
