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District risk assessment flags cash handling, HR and recordkeeping weaknesses; recommends policy changes
Summary
A district risk assessment presented to the audit meeting identified weaknesses across cafeteria cash controls, extracurricular activity accounting, human resources onboarding and purchasing; the auditors recommended policies, cross-training and improved timeliness for payroll and session notes.
An internal risk assessment presented at the Ithaca City School District meeting detailed multiple operational risks across finance, human resources, operations and special education and offered recommendations to reduce exposure.
The presenter said the risk assessment was completed in March and included a generic list of inherent risks and a functional-area chart comparing prior and current-year classifications. The audit team flagged issues ranging from unapproved startup funds in the child nutrition program to clubs with no financial activity remaining open and late entry of session notes that can affect special-education reimbursements.
Key findings included: startup cash amounts for the child nutrition program were not recorded in approved reorganizational minutes and therefore had not been board-approved annually; several extracurricular clubs across multiple buildings remained "active" despite no financial activity for the year ending June 30, 2024; collective bargaining agreements for Educational Support Professionals and the Substitutes Association were expired as of June 2024; late reporting of employee resignations resulted in at least one employee receiving pay for several months after leaving the district; and no written operational procedures existed for HR onboarding and attendance processes.
For operations and maintenance, the assessment found no cross-training for the facilities administrative assistant role and recommended cross-training at least one employee to ensure continuity. For payroll and purchasing, the assessment reiterated audit findings about late time-sheet submissions and lack of supervisor signatures in transportation and recommended establishing departmental deadlines and enforcing signature requirements. The assessment also noted purchasing approvals by the assistant superintendent for business occurred before formal board approval had been recorded and recommended formal board authorization for purchase-order approvers.
The presenter also reviewed previously noted items that have been addressed: acceptable-use agreements are now enforced via a signed annual paper form and mechanics are no longer allowed to work on personal vehicles in transportation.
The auditors recommended actions including: formalizing and documenting bid times for transportation, implementing checklists and review processes for new-hire records, creating deadlines and periodic reviews for session notes to protect special-education revenue, cross-training facilities staff and ensuring board approvals for startup cash and purchase-order approvers.
The presenter said updates to prior-year comments will be reflected in the final report once corrective-action plans are received and signed.
No formal board decisions were recorded during the presentation; follow-up will occur through corrective-action documentation and later reporting to the board.
