Internal audit finds control gaps, recommends priorities for Newburgh City School District finance operations

Jennifer George of RPT CPAs presented an internal audit report and a required New York State internal audit risk assessment to the Newburgh City School District Audit & Finance Committee in June, summarizing findings about judgments and claims, special-education settlements, financial controls and operational risks across the 2022–23, 2023–24 and 2024–25 school years.

The report found no judgments-and-claims expenditures in 2022–23; two judgments-and-claims settlements totaling $9,280,000 in 2023–24 and two in 2024–25 totaling $7,300,000. Auditors were given supporting documentation for two special-education settlements from 2023–24 that totaled $13,750 but were not able to obtain a single printed account or consistent coding that isolated all special-education settlement expenditures. “We were not able to get a printout of the account where those special education settlement expenditures were coded,” George said during the committee presentation.

The auditor told the committee that all judgment-and-claim settlement agreements presented for review had been signed by the board president and the district notary, and that the two special-education…