Fiscal Policies - HFM BOCES

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Lessons to be leaned from audits

As of December 2005, the state comptroller's office had completed 52 audits and 71 were in progress. As a result of these audits so far, officials from six school districts and one BOCES have been arrested.

"Reading these audits tells us exactly what we should be doing to tighten up internal controls," Mrs. Edwards said. "Areas such as cell phone usage, travel, conferences and meals, attendance tracking, detailed documentation of expense reimbursements, tracking of equipment, public bidding, pre-approvals of purchases, provision of refreshments, segregation of duties in the business office, board of education oversight, etc., are all areas cited in numerous audits that need improvement."

Changes are in the works at HFM BOCES to reflect those audit findings, she said, including updates to the cell phone policy and purchasing policy. Several of HFM's board members have already completed the newly required six-hour financial training, and the board has appointed an internal claims auditor who reports directly to the board.



	HFM BOCES policies

	Following proper procedures is essential 'It's our duty to serve our students, taxpayers and our component school districts' Audits of school districts across the state in recent years have revealed fraudulent practices and unintentional mistakes that have cost taxpayers millions and millions of dollars. Associate Superintendent Linda Edwards reminded staff members on Opening Day that the policies and procedures already in place at HFM BOCES are designed to prevent such losses from happening here. "Not only do we have a duty to serve our students but also a duty to the taxpayers and our component districts by giving them the confidence that their money is being spent for the purpose it was collected," Mrs. Edwards said. "Please cooperate with me and my staff as we work to follow the law, our board policy and the HFM BOCES Board's goal to improve upon our fiscal accountability for future years." Although some policy changes are coming, Mrs. Edwards said, "there are some things that will not change and have not changed for many years and that is: Absolutely no purchases without prior approval -- which means you need an official purchase order generated off our accounting system. General Municipal Law has not changed either. We are still required to follow public bidding laws." Following a number of scandals in school financial practices, Chapter 283 of the Laws of 2005 was enacted to improve fiscal accountability in schools. Under the law, every school and every BOCES will be subject to audits by the state comptroller's office by March 2010 -- which includes 699 public school districts, 84 charter schools and 38 BOCES across New York State. This means HFM BOCES will be subject to a mid-year and end-of-year audit by local auditors as well as an upcoming state comptroller's audit as well. The five-point plan also requires: • School board members to complete six hours of training related to financial oversight, accountability and fiscal responsibility; • Schools to establish audit committees; • Schools to make competitive requests for proposals for their local auditors at least once every five years; • School boards to either audit each claim or appoint an internal claims auditor; and • Schools to develop an internal audit function to develop risk assessment, review financial policies and procedures, and test and evaluate internal controls. Resources for HFM BOCES staff For more information about policies and to download required forms, click here.

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