Policy 5570


The District has internal controls in place to ensure that:

a) The goals and objectives of the District are accomplished;
b) Laws, regulations, policies, and good business practices are complied with;
c) Audit recommendations are considered and implemented;
d) Operations are efficient and effective;
e) Assets are safeguarded; and 
f) Accurate, timely, and reliable data are maintained.

The District's governance and control environment will include the following:

a) The District's code of ethics addresses conflict of interest transactions with Board members and employees. Transactions that are less-than-arm's length are prohibited. Less-than-arm's length is a relationship between the District and employees or vendors who are related to District officials or Board members.
b) The Board requires corrective action for issues reported in the Certified Public Accountant's (CPA's) management letter, audit reports, the Single Audit, and consultant reports.
c) The Board has established the required policies and procedures concerning District operations.
d) The Board routinely receives and discusses the necessary fiscal reports including the:

1. Treasurer's cash reports;
2. Budget status reports;
3. Revenue status reports;
4. Quarterly extra-classroom activity fund reports; and
5. Fund balance projections (usually starting in January).

e) The District has a long-term (three to five years) financial plan for both capital projects and operating expenses.
f) The District requires attendance at training programs for Board members, business officials, treasurers, claims auditors, and others to ensure they understand their duties and responsibilities and the data provided to them.
g) The Board has an audit committee to assist in carrying out its fiscal oversight responsibilities.
h) The District's information systems are economical, efficient, current, and up-to-date.
i) All computer files are secured with passwords or other controls, backed up on a regular basis, and stored at an off-site or in a secure fireproof location.
j) The District periodically verifies that its controls are working efficiently.
k) The District requires all staff to take leave time during which time another staff member performs the duties of the staff on leave. Staff may also schedule transactions and other responsibilities to occur electronically before taking a leave.

Audit Response

Periodically, the District receives audit reports from the External (Independent) Auditor and/or the Office of the New York State Comptroller. The Board will review all audit recommendations in consultation with the Audit Committee and respond appropriately. Independent and Comptroller audit reports and the accompanying management letters will be made available for public inspection. The District will also timely post a copy of the annual external audit report or the Comptroller's final audit report on its website for a period of five years. Notice of the availability of independent and Comptroller audit reports will be published in the District's official newspaper or one having general circulation in the District. If there is no newspaper, notice must be placed in ten public places within the District. 

Policy References:
Education Law § 2116-a(3-b)
8 NYCRR § 170.12
General Municipal Law § 33(2)(e) and 35(1), (2)

NOTE:  Refer also to 
Policy 5572 - Audit Committee

Adopted: 6/22/99
Revised: 9/6/22, 2/28/23

Policy 5570