Capital Region BOCES receives audit from the Office of the State Comptroller
(January 14, 2008)

Albany, NY – The Capital Region Board of Cooperative Educational Services (BOCES) has received its final report from the Office of the State Comptroller (OSC) summarizing the findings of an “Internal Controls Over Select Financial Activities” audit of the BOCES for the period of July 1, 2005 through February 2, 2007.

“The recommendations by the state comptroller’s office are mostly procedural in nature and do not represent high risk systemic issues with the BOCES fiscal operations,” said BOCES Chief Operating Officer Dr. Gerald Carozza. “As we continue to work on our long-term plan to tighten internal controls, we are taking each and every recommendation very seriously in our efforts to increase efficiency and the effective use of public funds. The audit process has been an invaluable tool to uphold this responsibility.”

After completing an extensive risk assessment review of many fiscal areas of the BOCES, the state comptroller’s office focused their audit on evaluating internal controls over the BOCES claims processing and purchasing functions, technology equipment and data security, and the establishment of the internal audit function. BOCES officials worked prior to and during the audit process to address the areas identified in the comptroller’s report as requiring attention. These areas included: clarifying the claims audit position and function; establishing Board policies for providing meals and refreshments; assignment of cell phones and other devices; and developing a formal disaster recovery plan of mission-critical data.

“In reviewing the audit report, we found that most deficiencies noted in the audit report surrounding the claims audit function were a result of the OSC’s interpretive opinion as they relate to our procedural process for claims audit,” said Carozza. “To eliminate future issues of interpretation, we are requiring more documentary support for claims and purchasing.”

Several measures have already been introduced to address recommendations made by the state within the audit report.

• To insure that the claims audit position and internal audit function comply with Education Law, the BOCES conducted a thorough review of the claims audit position and internal audit function and confirmed that both the claims auditor and the Board understand that the claims auditor reports directly to the Board. In order to insure complete understanding, the Board’s Audit Committee is preparing a directive pointing out the lines of reportability and responsibility and will share that with the claims auditor and the Business Office.
• The BOCES is developing a meal and refreshment policy that will be reviewed by the BOCES Board. The proposed policy describes the circumstances when it is appropriate to provide food and beverages at meetings, trainings and conferences. The BOCES conducts extensive workshop and training opportunities in a variety of settings which often encompass full-day activities and result in meal expenses.
• The BOCES is drafting a proposed policy for the assignment and use of cellular telephones and blackberry devices that will be reviewed by the BOCES Board. During the period of the audit, the field auditors were informed that the BOCES had already completed a study of its methods for purchasing cellular service and implemented a plan that will save the BOCES in excess of $10,000 each year. BOCES already has a procedure in place for the reimbursement of personal use of phones. Additionally, the Board will be considering a policy regarding the assignment of cellular phones.
• While the BOCES has a very thorough process for tagging and placing technology equipment in its inventory records, BOCES has developed a procedure that will address tracking the movement of assets within its vast inventory on a periodic basis.
• The BOCES is in the process of developing a Business Continuity Plan which includes a formal disaster recovery plan to safeguard critical data. One step of this multi-faceted plan is the purchase of a generator which has already been authorized by the BOCES Board.

The Capital Region BOCES is among New York’s 834 public school districts, BOCES, and charter schools that have or will have been audited by the state comptroller’s office by 2010.

The complete audit report will be available on the comptroller’s Web site at: http://osc.state.ny.us/localgov/audits.  View the BOCES response to the audit.

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