ALBANY – Three area school districts are in the latest round to be audited by the state comptroller’s office.

The Eldred, Margaretville and Millbrook districts were placed under the microscope of Thomas DiNapoli’s office.

In the Eldred Central School District that encompasses portions of Sullivan and Orange counties, state auditors found district officials did not effectively assess risks inherent in the treasurer’s duties to ensure that district assets are safeguarded.

The treasurer had complete control over cash disbursements, the ability to sign checks, initiate wire transfers, make journal entries and reconcile district bank accounts.  

While audit testing did not reveal any material discrepancies, district officials must segregate key financial duties, or at least increase oversight of the treasurer’s functions, the auditors said. The board also did not adopt formal policies and procedures to adequately protect district systems and data.

In the Margaretville Central School District that encompasses portions of Delaware, Greene and Ulster counties, auditors found the board did not ensure that the duties related to the district’s cash receipts and disbursements were properly segregated.  

District officials did not ensure compliance with the district’s procurement policy. The district’s superintendent, as purchasing agent, approved purchases without first soliciting or ensuring that district staff solicited the required competition.  

Auditors found that, although the board had established policies and procedures defining the duties of the claims auditor, district officials did not properly monitor the claims auditor’s work.  

District officials did not develop policies and procedures to ensure that cafeteria moneys were properly recorded, accounted for and deposited intact.  The board did not establish internal control policies and procedures to sufficiently safeguard the district’s computerized data and other information technology resources.  Lastly, auditors noted weaknesses in internal controls over the district’s process for classifying workers whom the district enrolls in the Employees Retirement System.  

In the Millbrook Central School District in Dutchess County, auditors found weaknesses in internal controls over cash receipts and disbursements.  The treasurer’s duties were not adequately segregated.  The district’s controls over wire transfers were inadequate because the treasurer could transfer funds based on only verbal authorization by the business administrator.