Committee Report | January 2011

Report of

REGENTS COMMITTEE ON AUDITS/BUDGET AND FINANCE

to

The Board of Regents

January 11, 2011

Your Regents Committee on Audits/Budget and Finance met as scheduled on January 10, 2011. Chancellor Tisch, Vice Chair Bendit, Regents Brooks Hopkins, Phillips, Tallon, and Tilles were in attendance.

Chair’s Remarks:  Regent Chapey welcomed everyone and noted that the Governors State of the State address called for innovation, bold change and reform. In addition, the Comptroller’s audits are looking at opportunities for efficiencies and cost savings. The Department through this Committee should be looking for examples of such activities that can be replicated across the State.

Items for Discussion

Presentation – New York State Single Audit Findings

An Audit Director from the accounting firm Toski, Schaeffer and Co. presented the results of the 2009-2010 New York State Single Audit as it pertains to the State Education Department. The auditor described the five findings which were in the area of Subrecipient monitoring, consumer eligibility determinations and notification of ARRA awards. The Department has submitted corrective actions to address the findings.
December Fiscal Report and Budget Updates

The Chief Operating Officer provided an overview of preliminary actions being taken by the new administration to address issues such as mandate relief, consolidation of services, and funding incentives. We were also briefed on the workforce reduction which took effect on January 1, 2011.

Your Committee reviewed the December fiscal report. There was a discussion of the fiscal challenges facing the Department. The report includes a change to reflect the receipt and actual allocation of the 2010-2011 Federal Child Nutrition Award. The concerns remain in the area of teacher tenure hearing, assessment costs, the summer school for the arts and the GED program.
Completed Audits

The Committee was presented with 26 audits this month. The audits included 2 ARRA audits issued by the Office of Audit Services (OAS), an audit issued by the Auditor General of the New York City Department of Education and 23 audits issued by the Office of the State Comptroller (OSC). The OSC audits identified procurement issues; they also identified opportunities for school districts to achieve cost savings. OAS will continue to monitor trends requiring the attention of the Committee.   

That concludes our report.