Response To The NYS Comptroller's Audit Report
Garden City Public Schools is grateful for the guidance and assistance provided by the Office of the State Comptroller and believes the recommendations in the Comptroller's Audit will help ensure that the District's operations reflect best practice. The School District is very pleased to note that the audit contains no findings of fraud, misappropriation of funds, financial wrongdoings or other improprieties.
The School District notes that it has already implemented, or is currently in the process of implementing, all 18 recommendations contained in the audit. Indeed, the District had already begun to implement many of the recommendations during the audit period. Since the 2007-2008 school year, the District no longer allocates interest earnings from the Employee Benefits Accrued Liability Reserve (EBLAR) to the general fund; instead these monies are now credited back to the EBLAR, as required by the Comptroller. Similarly, separate signature discs are provided for the Treasurer and Deputy Treasurer, and bank reconciliations are performed according to the standards identified in the audit report. Fringe benefits provided to employees are covered by district-wide policy, resolution, employment contracts or collective bargaining agreements, and overtime must be pre-authorized and approved in writing.
As recommended in the audit report, the School District has revised its purchasing policy and practices to ensure that Request for Proposals (RFP) are solicited and carefully reviewed before purchasing professional services. Controls have been heightened concerning the issuing of confirming purchase orders, and new procedures have been implemented to ensure effective controls over fuel purchasing and dispensing. An extensive Disaster Recovery Plan for information technology has been initiated, with full implementation scheduled to be completed within the next few months. The District has also revised its protocols for controlling access to computer applications to ensure that accounts are activated and deactivated on a timely basis.
The School District continues to have differences of opinion with the Office of the State Comptroller concerning EBLAR and the Board's authorization of salaries and fringe benefits. As stated in the District's Response, Garden City established the EBLAR after receiving expert guidance concerning the requirement that public agencies accrue reserves in contemplation of significant liabilities for post-employment health benefits. As recently as Wednesday, June 24, 2009, Comptroller DiNapoli stated, "While we are facing difficult times now is not the time to push this issue aside." The School District held the well intentioned belief that the EBLAR was the only reserve available for accruing funds for a liability the Comptroller has called "staggering" (Newsday, June 24, 2009). Garden City was far from alone in this action; 250 other districts in New York State approached this issue in the same way, thereby demonstrating that there is considerable confusion about how post-employment health benefits may be funded. The School District, nonetheless, recognizes that the Comptroller has the "final say" in this matter and is already identifying ways in which the EBLAR surplus can be used to finance non-recurring expenses or pay off debt.
The School District also maintains that all compensation and fringe benefits provided to employees have been consistently authorized by the Board at public meetings, with full disclosure to the public. Official minutes contained documentation of such practices.
Furthermore, the Board of Education always received exhibits identifying specific compensation for employees before votes were taken, and these exhibits were always posted and accessible to the public at Board meetings. To comply with the Comptroller's recommendations, the District now includes salary information directly in Board resolutions, rather than as attachments.
Garden City Public Schools remains committed to transparency in its business operations and pledges itself to implement all the Comptroller's recommendations.
