Auditing procedures in the "post-Roslyn" era was the focus of a Garden City Board of Education work session on October 12th. Board members heard from two of the district's auditors, Andrew M. Miller, managing partner of Miller, Lilly & Pearce, LLP and Robert M. Levine, a partner at the accounting and consulting firm J.H. Cohn LLP.

Miller referred to this period in school finances as the "post-Roslyn era" and said it is a high-focus year because of the recent Long Island school district financial scandals. State Comptroller Alan G. Hevesi's office will now audit every district in New York in the next five years to try to restore public trust. The state comptroller's office has not audited school districts in 20 years and will need to hire auditors. According to Miller, it will be an expensive proposition for taxpayers across the state because they will have to pay for the auditor's travel expenses, meals and hotels.

Miller and Levine explained their roles in the district's auditing process. Miller referred to Levine, who is concerned with documentation sufficiency, as a gatekeeper, and himself as a historian since he is involved with the district's controls and processes after the bills are paid.

Twice a month Levine's firm reviews warrants, the documentation that supports the issuance of all checks except payroll. The warrants have first been reviewed internally by business office staff, according to John Powell, assistant superintendent for business and finance. In the event a discrepancy is not caught internally, Levine's firm voids checks they think should not be paid. Since the district is tax exempt, the firm also looks to make sure the district is not being charged sales tax.

When checks are voided, Levine's firm contacts the district's business office to ask why the discrepancy or problem occurred. Board President Kenneth Monaghan asked Levine to also contact the entire board if he finds a problem.

All conference expense vouchers go through Superintendent Dr. Stephen Leitman, so if the issue involves an item charged to the district at a conference, Leitman talks to the person involved. An example of an item he recently flagged on an expense voucher was a $12 umbrella, which the district refused to pay. Leitman said he looks at each voucher individually because he realizes there are extenuating circumstances. For example, normally district employees who attend a conference are not reimbursed for meals or room service when meals are provided by the conference sponsors. Leitman said he attended a superintendent's conference and missed the dinner that was provided to attendees because he was called upon to handle an emergency involving the death of a student. He ate dinner later in the evening and charged the district.

Miller also provided his opinion on the district's financial situation. The district is in "great shape financially" after going through a difficult period a few years ago, according to Miller. He suggested that the district focus on long-range financial planning up to three years in advance.

He also advised the district that they should consider scaling down the number of cash accounts from 15 to two or three to lessen the work needed to keep track of transactions. Powell said he likes to keep the number of accounts high to foster a competitive environment among various banks. Miller suggested the district consider a bank bid. Powell will research the alternatives.

Miller was impressed that the district spends 76 percent of its funds on instructional programs. Fourteen percent of the district's money goes toward operational costs and building maintenance; five percent to transportation; two percent to debt service; two percent to depreciation; and one percent to the school lunch fund.

Miller noted that the district has a huge volume of money going toward student organizations. Although he did not see any significant control weaknesses, he did find money allotted to some inactive clubs. He also criticized the district for not always allowing students to participate in the process as club treasurers.

The work session ended with a review of the district's summer programs. Susan Kasser, interim director of pupil personnel services, talked about the special education summer program; Matthew Gaven, assistant principal of Stewart School, and Dr. Suzanne Viscovich, assistant principal at Stratford School, discussed the AIS summer program; and Joseph Papa, director of the summer enrichment program, gave the board a summary of the 19-day enrichment program. Acknowledging that every program is important and adds to the district, Leitman added, "Those that partake walk away with something."