Division of LocaL Government & schooL accountabiLity
o f f i c e o f t h e n e w y o r k s t a t e c o m p t r o L L e r
report of ExaminationPeriod Covered:
July 1, 2014 — June 30, 2015
2015M-267
Brookhaven-Comsewogue Union Free School District
Professional Services
thomas p. Dinapoli
Page
AUTHORITY LETTER 1
INTRODUCTION 2 Background 2 Objective 2 Scope and Methodology 2 CommentsofDistrictOfficials 2
PROFESSIONAL SERVICES 3
APPENDIX A ResponseFromDistrictOfficials 5APPENDIX B Audit Methodology and Standards 7 APPENDIX C How to Obtain Additional Copies of the Report 8 APPENDIX D LocalRegionalOfficeListing 9
Table of Contents
11Division of LocaL Government anD schooL accountabiLity
State of New YorkOffice of the State Comptroller
Division of Local Governmentand School Accountability December2015
DearSchoolDistrictOfficials:
AtoppriorityoftheOfficeoftheStateComptrolleristohelpschooldistrictofficialsmanagetheirdistrictsefficientlyandeffectivelyand,bysodoing,provideaccountabilityfor taxdollarsspent tosupportdistrictoperations.TheComptrolleroverseesthefiscalaffairsofdistrictsstatewide,aswellasdistricts’compliancewithrelevantstatutesandobservanceofgoodbusinesspractices.Thisfiscaloversight is accomplished, in part, throughour audits,which identify opportunities for improvingdistrict operations and Board of Education governance. Audits also can identify strategies to reduce district costs and to strengthen controls intended to safeguard district assets.
Following is a report of our audit of the Brookhaven-Comsewogue Union Free School District,entitledProfessionalServices.ThisauditwasconductedpursuanttoArticleV,Section1oftheStateConstitution and the State Comptroller’s authority as set forth in Article 3 of the New York State General Municipal Law.
Thisaudit’sresultsareresourcesfordistrictofficialstouseineffectivelymanagingoperationsandinmeetingtheexpectationsoftheirconstituents.Ifyouhavequestionsaboutthisreport,pleasefeelfreetocontactthelocalregionalofficeforyourcounty,aslistedattheendofthisreport.
Respectfullysubmitted,
Office of the State ComptrollerDivision of Local Governmentand School Accountability
State of New YorkOffice of the State Comptroller
2 Office Of the New YOrk State cOmptrOller2
Background
Introduction
Objective
Scope andMethodology
Comments ofDistrict Officials
The Brookhaven-Comsewogue Union Free School District (District) is located in the Town of Brookhaven in Suffolk County. The District isgovernedbytheBoardofEducation(Board),whichiscomposedof seven elected members. The Board is responsible for the general managementandcontrolof theDistrict’sfinancial andeducationalaffairs.TheSuperintendentofSchoolsistheDistrict’schiefexecutiveofficerandisresponsible,alongwithotheradministrativestaff,fortheday-to-day management of the District under the Board’s direction.
TheDistrictoperatessixschoolswithapproximately3,700studentsand430fulltimeemployees.TheDistrict’sgeneralfundexpendituresfor 2014-15 totaled approximately$79.9million, fundedprimarilywithStateaid,realpropertytaxesandgrants.
TheobjectiveofourauditwastoexaminetheDistrict’sprocurementprocedures for obtaining professional services during the period July 1,2014 through June30,2015.Our audit addressed the followingrelatedquestion:
• Does the District procure professional services in the most economicalwayandinthebestinterestofDistricttaxpayers?
WeexaminedtheDistrict’srequestsforproposalsfromprofessionalserviceprovidersfortheperiodJuly1,2014throughJune30,2015.
We conducted our audit in accordance with generally accepted government auditing standards (GAGAS). More information on such standards and the methodology used in performing this audit are includedinAppendixBofthisreport.Unlessotherwiseindicatedinthisreport,samplesfortestingwereselectedbasedonprofessionaljudgment,asitwasnottheintenttoprojecttheresultsontotheentirepopulation.Where applicable, information is presented concerningthe value and/or size of the relevant population and the sample selectedforexamination.
TheresultsofouraudithavebeendiscussedwithDistrictofficials,andtheircomments,whichappearinAppendixA,havebeenconsideredin preparing this report.
33Division of LocaL Government anD schooL accountabiLity
Professional Services
Contracts for professional services do not have to be competitively bid. However, GeneralMunicipal Law requires school districts toadopt written policies and procedures for the procurement of goods andservicesthatarenotrequiredbylawtobecompetitivelybid.Thelawprovidesthatgoodsandservicesnotrequiredtobecompetitivelybid must be procured in a manner that assures the prudent and economicaluseofpublicmoneysinthebestinterestofthetaxpayers,facilitatestheacquisitionofgoodsandservicesofmaximumqualityatthelowestpossiblecostandguardsagainstfavoritism,improvidence,extravagance, fraud and corruption.Although not required by law,the District should award professional service contracts only after soliciting competition. One way to accomplish this is through a requestforproposal(RFP)processwhichismeanttoensurethattheDistrict receives the desired services on the most favorable terms by determiningwhatneedsexistforaparticularserviceanddefiningtheservice to be procured. In general, policies and procedures shouldestablishguidelinesfortheuseofwrittenandverbalpricequotationsorRFPs governed by an established dollar threshold, set forth thecriteria for determining which method of procurement will be used and provide for adequate documentation of actions related to theprocurement.
Districtofficialshaveestablishedacomprehensivepurchasingpolicyand procedures that provide guidance as to when items must be competitivelybidandwhenproposalsorquotesshouldbeobtainedfor purchases not required to be competitively bid.District policyrequires that the procurement of professional services, includinginsurance,willbeawardedbaseduponDistrictmerit,recommendationand formal RFPs.
By complying with the District’s policy and procedures, Districtofficials procured professional services in an economical manner.Uponobtainingwrittenproposals,theDistrictperformsananalysisofthe proposals submitted to determine the providers to select based on merit,recommendationandprice,sothattheprocurementisawardedinthebestinterestofDistricttaxpayers. Theserviceprovidersareorganized by service to be provided and theDistrict identifies theprimaryvendortobeusedforagivenservice,aswellasalternatesthatmay be used in certain circumstances. We reviewed the procurement of six professional service contracts1 totaling approximately $1.05
1 We judgmentally selected the six highest paid professional service providers,including vendors providing special education-related services, tutoring andlegal services.
4 Office Of the New YOrk State cOmptrOller4
million,or66percentoftheapproximately$1.6millionexpendedforprofessional services during the audit period. The District properly awarded all six professional service contracts after issuing RFPs.Furthermore,we reviewed the largest invoiceassociatedwitheachoftheseprofessionalserviceprovidersandfoundthatallsixinvoiceswere billed and paid in accordance with the terms of their respective contracts.
We commend the District for establishing and enforcing appropriate procurement policies and procedures.
55Division of LocaL Government anD schooL accountabiLity
APPENDIX A
RESPONSE FROM DISTRICT OFFICIALS
TheDistrictofficials’responsetothisauditcanbefoundonthefollowingpage.
6 Office Of the New YOrk State cOmptrOller6
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APPENDIX B
AUDIT METHODOLOGY AND STANDARDS
Toachieveourauditobjectiveandobtainvalidevidence,weperformedthefollowingprocedures:
• WeinterviewedappropriateDistrictofficialsandemployeesregardingtheprocurementpoliciesand procedures.
• We reviewed Board minutes, District policies, administrative regulations and proceduresrelated to the procurement of professional services.
• We reviewed cash disbursement data to identify vendors who appeared to be professional serviceprovidersfortheauditperiod.Fromthatdata,wejudgmentallyselectedthesixhighestpaidvendorsfortesting.Foreachofthesevendors,wereviewedthecontractsandcomparedpayments (we selected the highest payment made to each vendor) to contracts to determine whether payments agreed with contract terms and the service provisions were met. We reviewed documentation supplied with voucher packets for evidence that the services were rendered (if applicable).Thesixvendorsselectedwerepaidatotalof$1,047,012,or65.6percentofthe$1,595,568paidtoallprofessionalserviceprovidersduringtheauditperiod.
WeconductedthisperformanceauditinaccordancewithGAGAS.Thosestandardsrequirethatweplanandperform theaudit toobtainsufficient,appropriateevidence toprovidea reasonablebasisforourfindingsandconclusionsbasedonourauditobjective.Webelievethattheevidenceobtainedprovidesareasonablebasisforourfindingsandconclusionsbasedonourauditobjective.
8 Office Of the New YOrk State cOmptrOller8
APPENDIX C
HOW TO OBTAIN ADDITIONAL COPIES OF THE REPORT
OfficeoftheStateComptrollerPublicInformationOffice110StateStreet,15thFloorAlbany,NewYork12236(518)474-4015http://www.osc.state.ny.us/localgov/
Toobtaincopiesofthisreport,writeorvisitourwebpage:
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APPENDIX DOFFICE OF THE STATE COMPTROLLER
DIVISION OF LOCAL GOVERNMENTAND SCHOOL ACCOUNTABILITYAndrewA.SanFilippo,ExecutiveDeputyComptroller
GabrielF.Deyo,DeputyComptrollerTraceyHitchenBoyd,AssistantComptroller
LOCAL REGIONAL OFFICE LISTING
BINGHAMTON REGIONAL OFFICEH.ToddEames,ChiefExaminerOfficeoftheStateComptrollerStateOfficeBuilding,Suite170244 Hawley StreetBinghamton,NewYork13901-4417(607)721-8306Fax(607)721-8313Email:[email protected]
Serving:Broome,Chenango,Cortland,Delaware,Otsego,Schoharie,Sullivan,Tioga,TompkinsCounties
BUFFALO REGIONAL OFFICEJeffreyD.Mazula,ChiefExaminerOfficeoftheStateComptroller295MainStreet,Suite1032Buffalo,NewYork14203-2510(716)847-3647Fax(716)847-3643Email:[email protected]
Serving:Allegany,Cattaraugus,Chautauqua,Erie,Genesee,Niagara,Orleans,WyomingCounties
GLENS FALLS REGIONAL OFFICEJeffreyP.Leonard,ChiefExaminerOfficeoftheStateComptrollerOne Broad Street PlazaGlensFalls,NewYork12801-4396(518)793-0057Fax(518)793-5797Email:[email protected]
Serving:Albany,Clinton,Essex,Franklin,Fulton,Hamilton,Montgomery,Rensselaer,Saratoga,Schenectady,Warren,WashingtonCounties
HAUPPAUGE REGIONAL OFFICEIraMcCracken,ChiefExaminerOfficeoftheStateComptrollerNYSOfficeBuilding,Room3A10250VeteransMemorialHighwayHauppauge,NewYork11788-5533(631)952-6534Fax(631)952-6530Email:[email protected]
Serving:NassauandSuffolkCounties
NEWBURGH REGIONAL OFFICETennehBlamah,ChiefExaminerOfficeoftheStateComptroller33AirportCenterDrive,Suite103NewWindsor,NewYork12553-4725(845)567-0858Fax(845)567-0080Email:[email protected]
Serving:Columbia,Dutchess,Greene,Orange,Putnam,Rockland,Ulster,WestchesterCounties
ROCHESTER REGIONAL OFFICEEdwardV.Grant,Jr.,ChiefExaminerOfficeoftheStateComptrollerThe Powers Building16WestMainStreet,Suite522Rochester,NewYork14614-1608(585)454-2460Fax(585)454-3545Email:[email protected]
Serving:Cayuga,Chemung,Livingston,Monroe,Ontario,Schuyler,Seneca,Steuben,Wayne,YatesCounties
SYRACUSE REGIONAL OFFICERebeccaWilcox,ChiefExaminerOfficeoftheStateComptrollerStateOfficeBuilding,Room409333 E. Washington StreetSyracuse,NewYork13202-1428(315)428-4192Fax(315)426-2119Email:[email protected]
Serving:Herkimer,Jefferson,Lewis,Madison,Oneida,Onondaga,Oswego,St.LawrenceCounties
STATEWIDE AUDITSAnnC.Singer,ChiefExaminerStateOfficeBuilding,Suite170244 Hawley Street Binghamton,NewYork13901-4417(607)721-8306Fax(607)721-8313
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