ALBANY - Poor oversight by Schenectady City School District officials led to more than $50,000 in unverified overtime for one employee in one school year, annual risk assessments not being completed as required by law and $26,062 in questionable separation payments, according to an audit released today by State Comptroller Thomas P. DiNapoli.  

“School district budgets are funded by local property taxpayers and state taxpayers,” DiNapoli said. “And taxpayers should feel confident that their money is being put to good use. Schenectady City School District needs to step up and protect taxpayers’ money better.”

The audit, covering July 2007 to January 2009, found that district officials need to improve their oversight of the district’s operations. Auditors learned the head utility worker, Steven Raucci, received more than $50,000 in overtime during the 2007-08 fiscal year for facilities management and energy management duties. However, the district lacked supporting documentation for what these duties entailed and verification that the hours were actually worked.

In addition, auditors determined the district’s internal auditor, a certified public accounting firm, failed to complete annual risk assessments of the district by deadlines established by law. For 2006-07, the risk assessment was completed almost 14 months late and the risk assessment for 2007-08 had not yet been started when auditors completed their fieldwork in May 2009, making the risk assessment at least five months late. Without timely risk assessments, the district has no way of knowing if it is adequately safeguarding its assets.

The district disputes some of the audit’s findings. The district’s full response is included in the audit. To view the audit, visit:  www.osc.state.ny.us/localgov/audits/schools/2009/schenectady.pdf.