BC News

Comptrollers audit of district is positive
Release Date: Aug. 7, 2007

A recently-released audit report from the New York State Comptroller shows that the district’s financial practices are responsible and appropriate, and that officials proactively tightened fiscal controls in light of auditors’ recommendations in select areas.

The main objective of the state review, conducted over 2005 and 2006, was to determine if controls over certain financial operations were appropriately designed and operating effectively.

In its report, the Comptroller's Office cites the district's use of an internal auditor from Capital Region BOCES (Board of Cooperative Educational Services) to comply with a new state requirement. Because the district contracts with BOCES for other educational services, the auditors suggested that this could jeopardize the independence of the internal auditor.

The use of BOCES is designed to save taxpayers money through the shared service, and the district believes the arrangement provides ample independence in the internal auditor role. There is nothing in existing law or regulation that precludes contracting with BOCES.

The Comptroller's audit contained recommendations for the district to tighten financial controls in a handful of areas, and the report indicates that the district moved swiftly to implement these actions, in many cases before the audit was even complete.

The report is based on extensive fieldwork and notes zero instances of impropriety, unauthorized activity, or inappropriate use of taxpayer funds.

"This clean audit shows that the district's financial practices are responsible and appropriate," Superintendent Les Loomis said. "We have already implemented many of the helpful recommendations, and we thank the Office of the State Comptroller for its work as we continue to maintain effective financial controls."

The entire report, including the district's response, can be found online at http://www.osc.state.ny.us/localgov/audits/2007/schools/bethlehem.htm.