Riverhead School District Financial Records Incomplete, Inaccurate, Audit Finds

The findings were released on Dec. 16 as a part of a 15-page audit of the district’s financial records from the 2022-2023 school year, which had $167.7 million in general fund expenditures, officials said.

“When the Board is not provided with sufficient information, and financial reports are not accurate, complete and submitted in a timely manner, the Board’s ability to adequately and effectively monitor the District’s financial operations is limited,” the audit stated.

The audit also found that none of the 141 district bank account transfers totaling $127 million were reviewed and approved by someone other than the district treasurer, whose work was not reviewed. Of those, 47 transfers totaling $12.3 million we reviewed were approved by the school board.

Auditors recommended that the district update its policies to require the treasurer to submit monthly budget reports and perform formal bank reconciliations. The comptroller’s office recommended that the assistant superintendent should monitor the treasurer’s reports, ensure district officials are compliant with board policy for budget transfers, and provide greater oversight of the treasurer’s work. And the audit also recommended that the board and superintended should develop policies for day-to-day financial operations including electronic transfers and payments.

Riverhead School Superintendent Robert Hagan and Board of Education President James Scudder acknowledged the accuracy of the report in a letter to the comptroller.

“The Board of Education has reviewed the report and our assessment is that the findings and recommendations appear to be accurate,” they wrote. “The board is in the process of preparing a formal written corrective action plan in response to the recommendations noted in the report.”