A new state audit has found that more than half of the claims reviewed at the Canisteo-Greenwood Central School District lacked proper documentation or verification before being approved for payment.
The audit, released by the New York State Comptroller’s Office, examined the district’s claims auditing process between July 2023 and June 2025. While all reviewed purchases were ultimately deemed valid, the audit found serious lapses in how those payments were reviewed — leaving the district vulnerable to error, fraud, or improper spending.
Of 202 claims sampled, 105 — totaling about $804,000 — were approved despite missing essential documentation. In many cases, the claims auditor failed to verify whether purchases were properly authorized, itemized, or matched with delivery receipts. The auditor also did not check compliance with procurement policies or confirm whether the goods or services were actually received.
What the audit found
- 95 claims lacked proof of purchasing approval, such as signed purchase orders.
- 34 claims were missing detailed invoices or receipts.
- 11 claims had no evidence of required competitive quotes or bids.
- Nine claims were not itemized enough to determine what was bought.
- Six claims lacked delivery confirmation.
- Four claims included reimbursements for sales tax — which the district is exempt from paying.
The claims auditor told investigators she was unaware her duties included reviewing purchase approvals, item details, or procurement compliance. She hadn’t received updated training or copies of the district’s procurement policies and had not been given guidance from the school board about expectations for the role.
Board oversight also lacking
The audit also flagged the Board of Education for failing to provide policies or direction to the auditor. Only two of the seven board members responded to auditor inquiries. Both said they were unaware the board was responsible for outlining expectations for claim reviews.
The report emphasized that the claims auditing process is a critical safeguard for taxpayer funds. Without clear policies and a properly trained auditor, improper payments could slip through undetected.
Three key recommendations
State officials issued three recommendations for the district:
- The Board should adopt clear policies outlining claims audit expectations.
- Officials should ensure the auditor receives all necessary procurement policies and training.
- The claims auditor must thoroughly review all claims before payment.
District officials agreed with the findings and stated they’ve begun corrective action. A formal plan must be submitted to the Comptroller’s Office within 90 days.
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