ALBANY – An audit of the
Chester Union Free School District by the state comptroller’s office
found that the district did not use excess fund balance to reduce real
property taxes or other appropriate purposes.
The audit of the period July 1, 2014 through September 29, 2015, also said the district needs to improve the transparency of the budget process.
The comptroller’s study also found the school board did not adequately segregate financial duties and did not ensure that claims were adequately audited. It also said the claims auditor did not report directly to the board or prepare a written report of audit findings.
Key recommendations as a result of the audit include ensuring that the amount of unrestricted fund balance is in compliance with the statutory limit and reduce the amount of surplus fund balance in a manner that benefits district residents. It also said the district should segregate duties, or if segregating duties is not practical, implement compensating controls.
The district also should provide the claims auditor with procedures, a checklist and report format to perform a proper audit of claims and ensure the claims auditor reports directly to the board, according to the state report.
