External Audit Gives
Huntington High Marks
The Huntington School District received an excellent independent financial audit from Coughlin Foundotos Cullen & Danowski, LLP, certified public accountants based in Port Jefferson Station. The firm conducted an extensive examination and review of the district's financial books, records and internal control procedures.
The audit was presented to the Huntington School Board by Jill S. Sanders, CPA, during a recent public meeting during which she reviewed the findings and recommendations.
Ms. Sanders' assessment was very positive and she noted the district's strong internal controls and the sense of professionalism among business office employees.
Trustees and Huntington Superintendent John J. Finello and Assistant Superintendent for Finance and Management Services David H. Grackin have been dogged in their collective pursuit of extremely tight internal control procedures and in cultivating a culture of honesty and professionalism. The audit showed effective segregation of duties among employees and revealed no discrepancies in the district's books and records.
Ms. Sanders provided an overview of the auditing process, which covered the district through the end of the last fiscal year, June 30, 2010. The firm interviewed employees "up and down the line" and documented the procedures in place. Sample transactions were tested for deficiencies and checked to determine if purchasing was in line with both Board of Education policies and the state law.
"The district is in fine financial shape," Mr. Grackin said. "We continue to increase our voluntary reserves. The auditors believe we are well-managed."
The auditors are keeping an eye on a few clouds on the horizon. "Future funding is a concern, especially when the district increases its appropriated fund balance," Mr. Grackin said. "Assessed value continues to fall. This impacts everyone's tax rate."
The audit process also included spot checks performed to insure employees were getting paid the correct amounts, that sick time was accurately accounted for along with any financial pay-out tied to it and that no employee was paid after their date of termination or retirement.
The auditor's comments were related to bank reconciliation, cash receipts, journal entries and budget transfers, personnel activity reports, payroll processing, internal claims auditor reports, extra-classroom activity funds and preparation of district financial statements. The district has already addressed almost all of the areas.
The accounting firm's findings were presented in two volumes along with a management letter that included a handful of relatively minor recommendations.