JOHNSTOWN - The H-F-M BOCES Board of Education took a look at an independent audit for the 2011-12 school year by Michael Rossi of West and Co. Inc. at its meeting Wednesday.
Rossi said the audit revealed no issues in the expenditures of grants over the fiscal year.
However, he said, there are insufficient accounting controls exercised over cash receipts at the point of collection to the time of submission to the Central Treasurer. Rossi found it was impracticable to extend the audit of those receipts beyond the amounts recorded.
Hamilton-Fulton-Montgomery Board of Cooperative Educational Services Superintendent Patrick Michel, right, and Board of Education member David Edwards look through the independent audit Wednesday at a meeting.
The Leader-Herald/Levi Pascher
He said majority of the audits done for Board of Coperative Educational Services programs have that line, so it is not abnormal for it to appear in an audit report for Extraclassroom Activity Funds.
"If you are doing a fundraiser you can't insist people bring checks," said Superintendent Patrick Michel. "If someone offers you $10 you would take that money."
Rossi explained that the deposit slip for cash transactions wouldn't show individual payments, but instead simply show the grand total received.
The only comment and recommendation from the audit report for this school year was regarding reserves.
Rossi recommended Hamilton-Fulton-Montgomery BOCES management and the board establish a formal reserve plan policy outlining planned funding and use of reserves for future years.
BOCES does not have any formal reserve policy in place at this time.
Rossi said he will provide BOCES with examples of reserve policies that are very simple and explain how they would expend from the reserve, why they would expend from the reserve and how the reserve is funded.
The plan would simply be in place to show the state comptroller what BOCES is doing in regards to maintaining a reserve, Rossi said.
"It is financially prudent to have reserves and utilize them when funding sources are cut and reserves are the place to seek funding when economic times are tough," Rossi said. "All in all this was a very good audit and we didn't find any material errors."
Superintendent Michel formally thanked Treasurer Karen Fagan and her team for the work they did to aid in the completion of the independent audit.