Jefferson-Lewis-Hamilton-Herkimer-Oneida_Final_Audit_Report

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

Michael Abbott, CPA

Director

Office of Audit Services

Tel. (518) 473-4516

Fax (518) 473-0259

E-mail: mabbott@mail.nysed.gov

November 13, 2003

Mr. Lynn Murray

Board President

Jefferson-Lewis-Hamilton-Herkimer-Oneida BOCES

20104 State Route 3

Watertown, New York 13601

Dear Mr. Murray:

The following is our final audit report (BOC-0600-7) of the Jefferson-Lewis-Hamilton-Herkimer-Oneida Board of Cooperative Educational Services (BOCES) for the period July 1, 1998 through June 30, 1999. The audit was conducted pursuant to Sections 305 and 1950 of the Education Law in pursuit of Goal #5 of the Board of Regents/State Education Department Strategic Plan: “Resources under our care will be used or maintained in the public interest.”

Ninety days from the issuance of this report, BOCES officials will be asked to submit a report on actions taken as a result of this audit. I appreciate the cooperation and courtesies extended to the staff during the audit.

Sincerely,

Michael Abbott, CPA

Enclosure

cc: Commissioner Mills, T. Savo, J. Kadamus, B. Porter, T. Sheldon, J. Canaday, J. Stevens,

C. Szuberla, C. Foster (DOB), J. Dougherty (OSC), Dr. Linda Gush, Interim District Superintendent

Executive Summary

Background and Scope of the Audit

Jefferson-Lewis-Hamilton-Herkimer-Oneida (Jefferson-Lewis) BOCES ranked as the 27th largest BOCES in the State, in terms of total general fund expenditures, for the 1998-99 school year.

The audit examined management practices, records, and documentation related to summarizing and reporting data used in the BOCES Report Card and the Chapter 602 Report for the period July 1, 1998 through June 30, 1999. The Employment Preparation Education (EPE) Program was reviewed for the 1998-99 school year. This audit also followed up on findings and recommendations from the previous audit. The objectives were to: evaluate the adequacy of management controls over data reported to the Department and obtain reasonable assurance that the data are valid and reliable; determine how Jefferson-Lewis BOCES uses data to monitor the performance of the schools within its supervisory district; determine how Jefferson-Lewis BOCES uses data to monitor student outcomes; and evaluate the wide ranges of costs identified in the Chapter 602 Report and understand the reasons for the variances.

Audit Results

Presented below is a summary of the significant audit findings developed in response to the audit’s objectives.

· Report Card data documentation needs to be improved. (pages 3-10)

· Chapter 602 Report data were not necessarily accurate or were not calculated in accordance with the instructions. (pages 11-18)

· EPE expenditures were overstated by $58,156. (page 19-21)

· EPE attendance, student folder, and contact hour documentation can be improved. (pages 21-29)

· Report Card and Chapter 602 Report data are not always consistent. (pages 30 and 31)

· There are opportunities to improve management processes in the areas of segregation of duties, a policies and procedures manual, internal controls, expenditure transfers, and Educationally Related Support Services (ERSS) expenditures. (pages 32-37)

· Jefferson-Lewis BOCES had two areas the audit considered to be best practices. (page 52)

Jefferson-Lewis BOCES officials have implemented or are implementing procedures to address these issues.

Introduction.. 1

Background.. 1

Objectives, Scope, and Methodology.. 1

Report Card.. 3

Career & Technical Education.. 3

Alternative Education.. 4

Adult Education.. 5

Career & Technical Education. 5

Unduplicated Adult Education Enrollment 5

Improved Literacy Results and GED Preparation. 6