Published: November 01, 2007 12:50 pm      

CITY OF TONAWANDA: State finds gaps in oversight

One week after the Tonawanda Board of Education received a sterling report from an independent auditor regarding the district’s finances, the State Comptroller’s Office issued its own report on Tonawanda’s internal controls.

The state’s audit offers several suggestions for the district’s record-keeping policies, which were lacking enough that a $1,356 purchase at a local wholesale club did not receive approval from the district’s claims auditor, despite the fact that the purchase included two video game consoles, a video camera, candy and cookies, according to the report.

State auditors found both game consoles still unopened nearly one year after they were purchased. Board of Education President James Weber said Wednesday the district bought the consoles for a teen center activity that had to be moved from its original location to the high school, which already had such equipment.

Overall, he said, the district is quite pleased with the comptroller’s findings. “Most of the things they found were small, clerical-type things,” Weber said, adding that it was a “pretty clean audit.” The district has already adapted to every recommendation suggested in the audit, Weber said.

The state report, released Monday, was conducted by the Comptroller’s Office Division of Local Government & School Accountability, an agency that is auditing every school district across the state.

Among the report’s other findings:

• “The district did not implement sufficient internal controls, nor did district officials follow established policies, for claims processing.”

• Tonawanda’s claims auditor did not review 44 percent of the 79 claims until after payment had already been made the state found, and the claims auditor also “did not review them for accuracy and reasonableness,” according to the audit. Moreover, many claims did not contain adequate documentation, such as itemized receipts.

• Tonawanda “lacks policies and procedures for travel, expense reimbursement, gift cards, prepaid phone cards and credit account transactions at a supermarket.”

Two claims for food purchased at restaurants did not come with sufficient information detailing the purpose of the meals or the individuals who attended, the report states. That includes a claim for lunch at a local restaurant for 43 students and chaperones, totaling $558, and another student luncheon with a price tag of $347.

• Receipts for hotel stays were also flagged. The audit indicates that the district paid in advance a $1,246 claim for a four-night hotel stay. However, reservation records indicated that the person who requested the lodging was scheduled to stay three nights, and the claim packet didn’t have the final hotel bill. “Six months after the travel, district officials stated they were still seeking a $349 reimbursement from the hotel for the extra night that was not used,” according to the audit.

• Charges at a local supermarket did not contain sufficient explanation. The audit cites a purchase totaling $1,096, which included multiple purchases of candy and beverages. This particular claim, along with four others at the grocery store, “had no indication of approval by a department head or the purchasing agent, or an explanation as to the business purpose.”

District officials reported that they changed their grocery store policy in January. Prior to this, district employees merely had to identify themselves as such, sign a form provided by the supermarket and charge their purchases to the district account. The process now includes an authorized user list of 23 employees, and requires them to complete a form — approved by the building principal — stating what they plan on buying before the purchase can be made.

There was some discrepancy between state auditors and the district regarding Tonawanda’s use of donated computer equipment.

“Of the 149 computers that were donated for instructional purposes, only 34 ... were placed in classrooms,” according to the audit, which covers the period from July 1, 2005 through April 12, 2007. At first, auditors accounted for only 92 of the computers, meaning 57 were missing.

Weber said, however, that those computers were stored next to other obsolete electronics that were slated to be picked up, and auditors did not include those units in their count.

“All of those computers were found and are in the process of being utilized,” he said.

Contact reporter David J. Hill at 693-1000, ext. 115.