An audit report released by the New York State Comptroller’s office says that Wallkill School District claims totaling $1.7 million were not adequately supported, authorized or approved before payment. The state also questions the “family relationship” between the district’s auditor and a school board member.

The report, released last week by the Office of New York State Comptroller Thomas Napoli, says that state auditors “reviewed 100 claims totaling $1.7 million and determined: none were reviewed for sufficient budget appropriations, which could result in budget lines being overspent; 58 totaling $1.6 million did not have sufficient supporting documentation, which could result in paying a claim that is not valid and legal; and 11 lists of claims totaling $464,801 were not included in the claims auditor reports to the board. As a result, the board was not aware of all claims paid.”

The report for the audit period covering July 1, 2020 through December 31, 2021, notes that that state reviewed 100 claims totaling $1.7 million and determined:

• None were reviewed for sufficient budget appropriations, which could result in budget lines being overspent.

• 58 totaling $1.6 million did not have sufficient supporting documentation, which could result in paying a claim that is not valid and legal.

• 11 warrants (lists of claims) totaling $464,801 were not included in the claims auditor reports to the Board. As a result, the Board was not aware of all claims paid.

• “The claims auditor’s deficiencies with auditing claims creates a risk that the District could pay for invalid claims,” the report stated. “In addition, the claims auditor has a family relationship with a Board member. As a result, the District’s claims auditor cannot serve in this position.

The state made the following recommendations:

• Conduct a thorough and deliberate audit of all claims to ensure that they contain sufficient budget appropriations and supporting documentation before approving them for payment.

• Ensure the claims auditor report provided to the Board is accurate and complete.

• Ensure the claims auditor and acting claims auditor meet the requirements for eligibility for appointment.

Wallkill Superintendent Kevin Castle said a new claims auditor was appointed in October 2022 when they became aware of that information. He said district checklist for the internal claims auditor was created, based on audit report recommendations.

“These recommendations they gave was to improve the internal claims audit process which we are doing. We have now created a checklist for the internal claims auditor based on the recommendations of the audit to ensure that all the steps are being followed when it comes to their role,”Castle said. “I understand that the audit was on that role, but I also feel that there were things left out in regards to the layers and the internal controls we have in place prior to even getting to the internal claims auditor.”

Castle said the school district conducts three audits annually, two by an internal auditor and one externally.

“Whether it’s education or in any system, we always need to look to improve,” Castle said. “ I need to point out, there were no improper claims made, there was no improper payments made. We are fiscally responsible when it comes to spending taxpayer dollars.”

The next Wallkill Board of Education meeting will be held in-person and via livestream at Ostrander Elementary School on Wednesday, October 18 at 7 p.m. A district Corrective Action Plan will go to vote that same night.