2023
Business Office
21 Page Avenue
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
MMB & Co
October 23, 2023
Please accept this letter in response to the June 30, 2023 audited financial statements.
Recommendation 2023-001, Section II Financial Statements:
MMB & Co: The District should follow federal guidelines to resolve excess Cafeteria fund balance.
Cohoes City School District Corrective Action Plan:
The District has submitted a plan to the Child Nutrition Program. The district plans to send approximately $160,000 on new cafeteria tables.
Responsible For Action: S. Mackey
Anticipated Completion Date: Summer of 2024
Recommendation 2023-002, Section II Financial Statements
MMB & Co: The District should monitor fund equity and use the excess fund equity in future years.
Cohoes City School District Corrective Action Plan:
The District will review its long range financial plan to include funding and use of established reserves.
The District will prioritize the Capital & Debt Service reserves as bidding for the May 2022 Capital project is scheduled for this winter. The district will make the appropriate adjustments following the review and approval of the long range financial plan & project bid results.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/24
Recommendation 2023-003, Section II Financial Statements
MMB & Co: Audit Adjustments – recommend that management review and monitor account balances at year end more closely and implement a formal closing process for end of year reconciliations and cut offs.
Cohoes City School District Corrective Action Plan
The District has formal closing procedures and will continue to monitor account balances at year end. The required adjustments pertain mainly to Capital activities, specifically the timing of the playground equipment deliveries and a miscalculation for the commodities closing entry.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/24
Recommendation 2023-004, Section II Financial Statements
MMB & Co: Timelines related to STACing – we recommend that management designate employees to focus on catching up with the STACing of students.
Cohoes City School District Corrective Action Plan
The District has reviewed the STACing process & procedures to
ensure completion of STACing is more timely going forward.
Responsible For Action: E. Hill
Anticipated Completion Date: 6/30/24
Extra Classroom Activity Fund Recommendations
MMB & Co: The District should consider documenting donations in the minutes of each club and require all fundraisers be supported by a ticket reconciliation.
Management Response: The District has modified its ECAF procedures, including a new manual and forms. A training session is provided to club advisors to review the procedures annually. Two internal auditors (CHS, CMS) are appointed annually to enhance general oversight of all club activities. The exception relates to a year end donation reflecting the balance of the graduating high school class account. This donation occurred after students were dismissed for the school year. The district will implement a cutoff for such activities to ensure that this issue does not occur going forward.
MMB & Co: Maintain Student Ledger & periodically compare the central treasurer’s ledger with discrepancies resolved.
Management Response: The District has modified its ECAF procedures, including a new manual and forms. A training session is provided to club advisors to review the procedures annually. Two internal auditors (CHS, CMS) are appointed annually to enhance general oversight of all club activities. The internal auditors periodically verify ledger balances. Sixty transactions were tested, with one exception noted that is related to end of year activity that occurred after students were released for the summer. The district will implement a cutoff for such activities to ensure that this issue does not occur
going forward.
MMB & Co: Missing required sign-off on supporting documentation provided.
Management Response: Sixty transactions were tested, with one exception noted that is related to end of year activity that occurred after students were released for the summer. The district will implement a cutoff for such activities to ensure that this issue does not occur going forward.
The District would like to thank the MMB & Co staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District
School Business Official
2022
Business Office
21 Page Avenue
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
Marvin & Co
October 7, 2022
Please accept this letter in response to the June 30, 2022 audited financial statements.
Recommendation 2022-001, Section II Financial Statements
Marvin & Co: The District should follow federal guidelines to resolve excess Cafeteria fund balance.
Cohoes City School District Corrective Action Plan: The District has submitted a plan to the Child Nutrition Program. The CHS Dishwasher project has been approved by SED and the work is expected to be completed over the winter recess period.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/23
Recommendation 2022-002, Section II Financial Statements
Marvin & Co: The District should monitor fund equity and use the excess fund equity in future years.
Cohoes City School District Corrective Action Plan: The District will review its long range financial plan to include funding and use of established reserves. The district will make the appropriate adjustments following the review and approval of that plan.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/23
Recommendation 2022-003, Section II Financial Statements
Marvin & Co: Audit Adjustments – recommend that management review and monitor account balances at year end more closely and implement a formal closing process for end of year reconciliations and cut offs.
Cohoes City School District Corrective Action Plan: The District implemented a new accounts payable year end procedure this year. We did experience lessons learned with the new process, which were promptly reviewed with staff. We will continue to monitor account balances at year end.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/23
Extra Classroom Activity Fund Recommendations
Marvin & Co: The District should consider documenting donations in the minutes of each club and require all fundraisers be supported by a ticket reconciliation.
Management Response: The District has modified its ECAF procedures, including a new manual and forms. A training session was provided to club advisors to review the new procedures. Two internal auditors (CHS, CMS)
were appointed to enhance general oversight of all club activities. These improvements were implemented 9/28/22.
Marvin & Co: Timely deposits of ECAF funds (within 5 days)
Management Response: The District has modified its ECAF procedures, including a new manual and forms. A training session was provided to club advisors to review the new procedures. Two internal auditors (CHS, CMS)
were appointed to enhance general oversight of all club activities. These improvements were implemented 9/28/22.
The District would like to thank the Marvin & Co staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District
School Business Official
2021
Business Office
21 Page Avenue
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
October 5, 2021
Marvin & Co: Please accept this letter in response to the June 30, 2021 audited financial statements.
Recommendation 2021-001, Section II Financial Statements
Marvin & Co: The District should follow federal guidelines to resolve excess Cafeteria fund balance.
Cohoes City School District Corrective Action Plan:
The District has submitted a plan to the Child Nutrition Program.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/22
Recommendation 2020-002, Section II Financial Statements
Marvin & Co: The District should monitor fund equity and use the excess fund equity in future years.
Cohoes City School District Corrective Action Plan:
In the summer of 2020 NYS schools were advised that as a result of the economic impact on NYS due to the COVID-19 pandemic, the potential for up to 20% could be withheld from otherwise scheduled State Aid revenues, absent of any federal relief. The district, being dependent on State Aid, made reductions to programs and operations for the anticipated revenue shortfall. These reductions created a temporary operating surplus, as NYS schools were advised in the spring of 2021 that federal stimulus funds would be available. The District will review its long range financial plan & plan for use of reserves and make the appropriate adjustments.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/22
Recommendation 2020-003, Section II Financial Statements
Marvin & Co: The District should ensure that each payroll is being reviewed and certified as indicated by signoff of the designated individual.
Cohoes City School District Corrective Action Plan:
The District experienced turnover within the role of Superintendent of Schools. This individual is authorized to certify the bi-weekly payrolls. Each bi-weekly payroll is reviewed and audited by both the school business official and the claims auditor – this process is documented and was tested by Marvin & Co auditors. A successor was named for the Superintendent of Schools and the certification process was immediately implemented.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/22
Internal Control Recommendations
Marvin & Co: We recommend the District contact technical support for assistance in correcting the opening balances for encumbrances within the N-Vision software.
Management Response: Complete: The District has reviewed & revised the yearend encumbrance process.
Marvin & Co: The following items were identified as areas for improvement as they relate to the IT function:
- There are no system administrator instruction manuals.
- The effectiveness of the IT security program is not checked regularly through automated auditing and/or a security assessment.
- There is a partial Third Party software patch program in place.
- The District’s PCs are partially encrypted.
- The District does not have a contingency plan with instructions and contact addresses.
Management Response: The District will be reviewing its IT security and protocols and working to address the identified areas of improvement. Many of the recommendations will have a budgetary impact and thus shall be considered by the Budget Committee for inclusion in the 2021-2022 budget.
Extra Classroom Activity Fund Recommendations
Marvin & Co: The District should consider documenting donations in the minutes of each club and require all fundraisers be supported by a ticket reconciliation.
Management Response: Complete: The District has modified its ECAF procedures, this includes the appointment of 2 staff auditors to enhance oversight of club activities.
Marvin & Co: The District was unable to provide club ledgers for the clubs tested.
Management Response: Complete: The District has modified its ECAF procedures, this includes the appointment of 2 staff auditors to enhance oversight of club activities.
Marvin & Co: No Chief Faculty Auditor was appointed.
Management Response: Complete: The District has modified its ECAF procedures, this includes the appointment of 2 staff auditors to enhance oversight of club activities.
The District would like to thank the Marvin & Co staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District
School Business Official
2020
Business Office
21 Page Avenue
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
Marvin & Co
Oct. 13, 2020
Please accept this letter in response to the June 30, 2020 audited financial statements.
Recommendation 2020-001, Section II Financial Statements
Marvin & Co: We recommend that management review and monitor account balances at year end more closely and implement a formal closing process for end of year reconciliations and cut-off.
Cohoes City School District Corrective Action Plan:
The District reviewed our year end procedures and have made necessary modifications to our processes.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/21
Recommendation 2020-002, Section II Financial Statements
Marvin & Co: The District should follow federal guidelines to resolve excess Cafeteria fund balance.
Cohoes City School District Corrective Action Plan
The District has submitted a plan to the Child Nutrition Program.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/21
Recommendation 2020-003, Section II Financial Statements
Marvin & Co: The District should monitor fund equity and use the excess fund equity in future years.
Cohoes City School District Corrective Action Plan
The general fund balance subject to Section 1318 of Real Property Tax Law is $2,049,761 or 4.67%.
The District experienced unanticipated operating savings this spring due to the COVID-19 pandemic. All NYS schools were ordered to close buildings to the public and provide virtual learning in March, 2020. These savings are temporary in nature, as our schools have since reopened and have experienced additional (unplanned) expenses to ensure health & safety protocols are fully implemented. Further, the NYS economy has been dramatically impacted by the pandemic, experiencing significant revenue shortfalls. This summer NYS schools began to see a 20% withhold for some summer aid payments. NY schools have also been advised that State Aid could be reduced in the 2020-2021 fiscal year absent of any federal relief. The district is dependent on State Aid and any reductions will have an adverse impact on the district’s financial wellness.
Responsible For Action: S. Mackey
Anticipated Completion Date: 6/30/21
Internal Control Recommendations
Marvin & Co: We recommend that the District review due to/from balances and transfer funds as necessary.
Management Response: The District will conduct a review and clean up balances accordingly in the upcoming year.
Marvin & Co: We recommend the District contact technical support for assistance in correcting the opening balances for encumbrances within the N-Vision software.
Management Response: The District will revisit the matter with the N-Vision software representatives to ensure resolution should this happen in the future.
Marvin & Co: The following items were identified as areas for improvement as they relate to the IT function:
- There are no system administrator instruction manuals.
- The effectiveness of the IT security program is not checked regularly through automated auditing and/or a security assessment.
- There is a partial Third Party software patch program in place.
- The District’s PCs are partially encrypted.
- The District does not have a contingency plan with instructions and contact addresses.
Management Response: The District will be reviewing its IT security and protocols and working to address all items identified as areas of improvement.
The District would like to thank the Marvin & Co staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District
School Business Official
2019
Business Office
21 Page Avenue
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
Marvin & Co
October 22, 2019
Please accept this letter in response to the June 30, 2019 audited financial statements.
Recommendation: Section II Financial Statements
Marvin & Co: We recommend that management review and monitor account balances at year end more closely and implement a formal closing process for end of year reconciliations and cut-off.
Cohoes City School District Corrective Action Plan:
The District has reviewed year end procedures and will make all necessary modifications to ensure accuracy going forward.
Recommendations: Section II Financial Statements
Marvin & Co: The District should follow federal guidelines to resolve excess Cafeteria fund balance.
Cohoes City School District Corrective Action Plan:
The District has submitted a plan to the Child Nutrition Program.
Recommendations: Section III Federal Awards
Marvin & Co: We recommend that policies & procedures for those individuals whose time & effort of providing special education services be acknowledged by the individual employees whose time is ultimately being paid by the federal program occur at month end so they are reflective of actual time worked by each individual.
Marvin & Co: We recommend that policies & procedures be implemented to review time & effort reports monthly for individuals dedicated to the grant to ensure they are reflective of the actual time worked and charged to the federal program.
Marvin & Co: We recommend the costs claimed as part of the NYSED approved indirect cost rate are appropriately reflected.
Marvin & Co: We recommend that policies & procedures be implemented to review time charged to the federal program based on employee’s total wages. District should continue to make best efforts in obtaining signed salary notices from employees.
Cohoes City School District Corrective Action Plan:
Review procedures of the certification and reporting processes will be implemented with our internal audit process.
The District would like to thank the Marvin & Co staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District
School Business Official
2018
Business Office
21 Page Avenue
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
Stark & Basila
October 10, 2018
Certified Public Accountants, P.C. 132 Mohawk Street
PO Box 260
Cohoes, NY 12047
Please accept this letter in response to the June 30, 2018 audited financial statements.
Recommendation 1: General Funds
The unreserved Fund Balance at June 30, 2018 is in excess of the four percent permitted under Section 1318 of the Real Property Tax Law.
Cohoes City School District Corrective Action Plan:
The District voters approved the establishment & funding of a Capital Reserve Fund in May 2018.
Fund Balance in excess of the 4% shall be transferred to the Capital Reserve Fund to address future renovations and repairs.
Recommendations: Extra Classroom Activities
Our test disclosed instances in which a payment was made without an indication that goods had been received, one disbursement was paid from a statement and one disbursement did not have supporting documentation. Invoices should have the necessary paperwork filed with them before they are paid. Invoices should have the remittance voucher attached, be signed received by the club advisor and authorized by the club adviser & student treasurer. The invoice should be marked paid in order to avoid duplicate payments.
The 8th Grade Activities Club does not have enough available funds to meet its liabilities. All clubs should be able to operate without the support of other clubs or the District.
Cohoes City School District Corrective Action Plan:
The District offers annual fiscal training to all club advisors. This year the session is scheduled for October 22nd. The training covers internal controls & best practices for Extra Classroom Activities.
The District would like to thank the Stark & Basila staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District School Business Official
2017
Business Office
21 Page Avenue
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
Stark & Basila
October 4, 2017
Certified Public Accountants, P.C. 132 Mohawk Street
PO Box 260
Cohoes, NY 12047
Please accept this letter in response to the June 30, 2017 audited financial statements.
Recommendation 1: General Funds
The unreserved Fund Balance at June 30, 2017 is in excess of the four percent permitted under Section 1318 of the Real Property Tax Law.
Cohoes City School District Corrective Action Plan:
The District has created a long range financial plan & comprehensive reserve analysis. We continue to strive to
limit the unreserved fund balance to 4%. Funds held in excess of the 4% enable the district to absorb unanticipated expenses that may otherwise have a negative fiscal impact on school programs. Further, these resources help to ensure adequate liquidity to pay for our obligations throughout the school year, a sound fiscal practice.
The District would like to thank the Stark & Basila staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District School Business Official
2016
Business Office
7 Bevan Street
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
Stark & Basila
September 28, 2016
Certified Public Accountants, P.C. 132 Mohawk Street
PO Box 260
Cohoes, NY 12047
Please accept this letter in response to the June 30, 2016 audited financial statements.
Recommendation 1: General Funds
The unreserved Fund Balance at June 30, 2016 is in excess of the four percent permitted under Section 1318 of the Real Property Tax Law.
Cohoes City School District Corrective Action Plan
The District plans to utilize surplus funds as a resource to finance repairs to the Middle School roof in the 2016/2017 fiscal year.
Further, the District plans to develop a comprehensive five year financial plan to address this matter.
Recommendation 2: Extra Classroom Activities
Our test disclosed instances in which a payment was made without an indication that goods had been received, one disbursement was paid from a statement and one disbursement did not have supporting documentation. Invoices should have the necessary paper work filed with them before they are paid. Invoices should have the remittance voucher attached, be signed received by the club advisor & authorized by the club advisor & student treasurer. The invoice should be marked paid in order to avoid duplicate payments.
The Cohoes Green Team does not have available funds to meet its liabilities. All clubs should be able to operate without the support of other clubs or the District.
Cohoes City School District Corrective Action Plan:
The District’s internal auditor is scheduled to conduct a mandatory training seminar with the staff advisors, outlining proper fiscal procedures in October 2016. Additionally, the Extra Classroom Activities Treasurer participated in a BOCES training session in September 2016.
The District would like to thank the Stark & Basila staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District School Business Official
2015
Business Office
7 Bevan Street
Cohoes, NY 12047
518.237.0100
Fax: 518.237.2912
Stark & Basila
October 7, 2015
Certified Public Accountants, P.C. 132 Mohawk Street
PO Box 260
Cohoes, NY 12047
Please accept this letter in response to the June 30, 2015 audited financial statements.
Recommendation 1: General Funds
The unreserved Fund Balance at June 30, 2015 is in excess of the four percent permitted under Section 1318 of the Real Property Tax Law.
Cohoes City School District Corrective Action Plan
The District plans to utilize appropriated fund balance to build on our program offerings for students.
Further, preliminary 2016/2017 forecasts indicate limitations in revenue sources imposed as a result of the Property Tax Cap formulary.
The District would like to thank the Stark & Basila staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District School Business Official
2014
Stark & Basila
October 7, 2014
Certified Public Accountants, P.C. 132 Mohawk Street
PO Box 260
Cohoes, NY 12047
Please accept this letter in response to the June 30, 2014 audited financial statements.
Recommendation 1: General Funds
The unreserved Fund Balance at June 30, 2014 is in excess of the four percent permitted under Section 1318 of the Real Property Tax Law.
Cohoes City School District Corrective Action Plan:
The District plans to utilize appropriated fund balance in the 2014/2015 budget, to offset forecasted increases in expenditures.
Furthermore, the District is forecasting limitations in revenue sources, such as funding available for public education through State & Federal Aids, and limitations imposed as a result of the Property Tax Cap.
Recommendation 2: School Lunch
The sales tax return was not filed timely. As a result, the District incurred interest & penalty charges. The District should file all tax returns in a timely manner going forward.
Cohoes City School District Corrective Action Plan:
The District Treasurer will ensure the return is filed timely, without exception going forward.
Recommendation 3: Federal
Our test of invoices found one federal expenditure where the remittance voucher was marked paid and the invoice was not. Invoices should have the necessary paperwork filed with them and be on an approved warrant before they are paid. Invoices should have the remittance voucher attached, be signed received & be authorized. The invoice should be marked paid in order to avoid duplicate payments.
Cohoes City School District Corrective Action Plan:
It is the District’s practice to mark all invoices as paid to avoid duplicate payments. Further, all disbursements are subject to review & approval by the Internal Claims Auditor. Any exceptions are noted during the claims audit process, and are documented on the audit report. Reports are provided to the Board of Education on a monthly basis.
Recommendations: Extra Classroom Activities
Our test disclosed instances in which a payment was made without an indication that goods had been received. Invoices should have the necessary paperwork filed with them before they are paid. Invoices should have the remittance voucher attached, be signed received and be authorized. The invoice should be marked paid in order to avoid duplicate payments.
Cohoes City School District Corrective Action Plan:
The District will continue to offer training to club advisors, regarding internal controls & best practices for the Extra Classroom Activities.
The District would like to thank the Stark & Basila staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District School Business Official
2013
Stark & Basila
October 11, 2013
Certified Public Accountants, P.C. 132 Mohawk Street
PO Box 260
Cohoes, NY 12047
Please accept this letter in response to the June 30, 2013 audited financial statements.
Recommendation 1: All Funds
Our test of cash disbursements disclosed a few instances of payment vouchers which did not contain a signed purchase order or claim form on file. All payment vouchers should be supported by a signed purchase order or similar document substantiate that the purchase was approved by the purchasing agent.
Cohoes City School District Corrective Action Plan:
The District has developed a comprehensive purchasing manual, which includes board policies & best practices. The purchasing manual is reviewed & updated on an annual basis. All cash disbursements are subject to review & approval by the Purchasing Agent & Internal Claims Auditor. Any exceptions noted during the claims audit process are documented on the audit report, and provided to the Board of Education monthly.
Recommendation 2: General Funds
The unreserved Fund Balance at June 30, 2013 is in excess of the four percent permitted under Section 1318 of the Real Property Tax Law.
Cohoes City School District Corrective Action Plan:
The District plans to utilize excess funds as appropriated fund balance in the 2013/2014 budget, to offset an anticipated loss of revenue. The District is forecasting reductions in revenue sources, such as federal grant funding & the limitations imposed as a result of the Property Tax Cap.
Recommendation 3: School Lunch
Our test of free & reduced lunch applications revealed an instance where the reviewer’s signature was not present. All free & reduced lunch applications should be reviewed and authorized by an appropriated level of management.
Cohoes City School District Corrective Action Plan:
The District will continue to review the application approval process to ensure no exceptions going forward.
Recommendations: Extra Classroom Activities
Currently, the Class of 2010, 2011, 2012 & 2013 clubs have cash balances at year-end. Class clubs should be encouraged to expend or transfer balances to another club, prior to the end of their commencement year. We suggest that these balances be transferred to the Student Council account.
Our test of cash receipts disclosed one instance of cash payments being distributed to vendors. In order to ensure that cash disbursements are made for appropriate purposes, cash disbursements should be made by check to known vendors & only after there has been a check request & appropriate documentation approved by the faculty advisor & student treasurer.
Our test of cash receipts also revealed one instance of a deposit which did not match the supporting documentation. All deposit slips should be compared to supporting documentation when received by the District. Any variance should be examined & conclusions reached documented & kept on file with the cash receipts.
Cohoes City School District Corrective Action Plan:
The District’s internal auditor conducted a mandatory training seminar with the staff advisors, outlining proper procedures on November 21, 2011. Another mandatory training seminar will be conducted in 2013, to address these issues. Additionally, an internal audit will be conducted to review ECA controls during the 13/14 school year.
The District would like to thank the staff for their professional courtesy throughout the audit process. Should you require any additional information please do not hesitate to contact me.
Sincerely,
Stacy Mackey
Cohoes City School District School Business Official