GLOVERSVILLE - The Gloversville Enlarged School District Board of Education will form an audit committee to review a draft audit that accuses the board of not exercising adequate oversight of financial operations for almost two years.
Board President Richard E. Carlson read a statement about the audit, which he said was released prematurely.
"This is an unfortunate circumstance, but it will not distract this board from continuing to cooperate with the [New York State] Comptroller's Office as the audit is completed," Carlson said.
The audit - which has not been officially released and is a draft of the initial findings - covered a period of time from July 1, 2011 to March 31, 2013.
The comptroller's draft audit revealed district officials said there was no audit committee active at the district.
Although the board had been established as an audit committee in 2005, the draft audit said, the members did not perform the duties required of such a committee.
The audit also revealed the district had not received an internal audit report since 2010-11 and the district did not appoint an internal auditor for the 2012-13 school year.
The draft audit also said board members do not audit individual claims and haven't appointed a claims auditor.
As a result, the audit said, none of the 50 claims tested by the comptroller's office - totaling $967,570 - had been audited.
"...taxpayers do not have adequate assurance that risk is being effectively monitored and that internal control weaknesses are identified and addressed," the draft audit said.
Carlson said the next step for the district will be for the newly-formed audit committee to meet and review the draft audit and formulate the district's response.
"Our response will be submitted to the comptroller's office by the Sept. 18 deadline," Carlson said.
A corrective action plan, which will acknowledge issues brought up in the audit, is due 90 days after the release of the final report.
Steve Schloicka, assistant superintendent of the business office, said he expects the audit to be made available by the end of September.
The comptroller does make a number of recommendations to the district in the draft audit, including annually appointing an audit committee, ensuring the internal audit function is performed and documented, and making sure to audit all claims against the district prior to payment.
Carlson said the board would not discuss or answer questions regarding the audit until the final report has been released.
Arthur Cleveland can be reached at email@example.com