Audit committee flags confirming purchase‑order exceptions, orders monthly department memos

The audit committee of the Niskayuna Central School District met Feb. 14, 2025, and reviewed an internal report showing a 9% increase in claims‑auditing exceptions from 2023 to 2024 and a 6.14% overall exception rate, with confirming purchase orders the largest single category of exception.

The figures drew focused discussion because the bulk of the exceptions are in the district’s A Fund (general fund). Doris (Business Office staff) told the committee the A Fund rose from 6.02% exceptions in 2023 to 6.7% in 2024. "I'd like to really just commend the purchase or the business office staff for that," Doris said when describing declines in fees, interest and penalties. Committee members said confirming purchase orders remain the primary area for improvement.

The committee framed the issue as a mix of timing and process. Matt (Committee member) said the summer enrichment program’s purchasing pattern — instructors buying supplies up front and seeking reimbursement — creates built‑in exceptions because requisitions and purchase orders are not always in place before expenses are incurred. He described steps the district will take to reduce exceptions: monthly exception reports by department and direct, department‑level memos that lay out specific corrective strategies. "Each month moving forward, Doris is gonna send us a report of the exceptions by department and we're going to kind of turn that report around into a memo to each department to highlight what we're seeing," Matt said.

Mike (Purchasing staff) and others discussed practical controls to reduce exceptions and teacher out‑of‑pocket sales‑tax losses. As one staff member noted, the district can purchase supplies centrally so teachers do not pay sales tax and then seek reimbursement. "If those teachers can just identify what their needs are and send them to Mike, he can do a requisition and the district can purchase their supplies," the staff member said. Committee members discussed alternatives including creating blanket purchase orders for predictable annual costs (an example given was a $2,000 encumbrance for athletic CPR classes).

The internal auditor, Michael (Internal Auditor), reported the 2023‑24 risk assessment had no items requiring a corrective action plan and characterized the report as "relatively clean" while noting several areas for attention. Michael reported a food‑service student credit balance of about $15,000–$16,000 and one purchase order originally opened for $1,500 that reflected $4,878 in purchases. He also flagged that the district has not completed a physical inventory of fixed assets and that current network password controls "are not at the recommended level." Michael said procurement testing is in process (approximately 60–70% complete) and that he is reviewing contracts and state‑contract compliance as part of that work. The 2024‑25 risk assessment is scheduled for March 31; the committee will present recommendations to the full board.

Committee members gave specific examples of departmental causes for exceptions. In athletics, Cindy (Athletic secretary) and staff said many exceptions come from CPR certification classes and late coach registrations for tournaments; those events frequently produce purchase orders after the fact. Committee members proposed meeting with department personnel to establish blanket POs or improve advance planning.

Formal committee actions at the meeting were procedural. The committee approved minutes from the October meeting (motion and second on the record; the transcript records the motion, a second and a unanimous passage but does not provide a roll call tally). The committee then moved into executive session to discuss a previously issued RFP; the transcript records a motion and a second to convene the executive session and indicates the committee adjourned into that closed session with no further public actions taken.

The committee set a next meeting date of April 11 and identified immediate next steps: (1) monthly exception reports to departments from Doris, (2) targeted department memos and follow‑up meetings to reduce confirming PO exceptions, (3) continued procurement testing by the internal auditor and (4) presentation of the 2024‑25 risk assessment to the full board after the March 31 completion.

Votes at a glance: - Approval of committee minutes (October): motion made and seconded; passed unanimously (tally not specified in transcript). - Motion to convene executive session (RFP discussion): motion made and seconded; committee moved into executive session (tally not specified in transcript).

Ending: The committee concluded public business and entered executive session; staff and auditors will bring a follow‑up package and recommendations to the full board for action after the March risk assessment and ongoing procurement testing.