The Abrahams Report
This page will be updated in January. While everything here is still pertinent, there is additional information from the Abrahams Group's work in Wayland. The most recent is the Restatement of the FY11 budget. In the coming weeks, we will delve into this and highlight some of its most important findings. In the meantime, you can download the entire 121 page report here.
A Draft of Part Two of the Abrahams Report came out on March 15. In reading some of the content from the report, it's hard not to think of times we've heard from the committee, the administration, SOS and others that "there isn't an ounce of fat in the budget".
This is what they were defending?
• There are bank accounts for the schools not tied to the general ledger in any way totaling over $100,000. These were shut down last week because they are in violation of the law.
• "Inadequate Segregation of Duties – Accounts Payable"
• "...a risk for the set up of a false vendor and the misappropriation of assets."
• "...there is no independent verification that what is paid out by the Town is based on the actual dollar amounts invoiced and that the check is to the actual vendor on the invoice etc."
| Here's what the SC said last June. This WayCam clip shows new member Shawn Kinney asking for more financial details and the response of the longer term members. |
• "This situation is a significant internal control risk that presents the potential for misappropriation of assets. "
• "We also note, as previously reported to Town officials, there had been a theft of funds by Treasurer's office staff due to the absence of sound internal controls "
• "The school MUNIS payables batch is posted to the general ledger and checks are printed without provision of invoices. In a review of the dates of the batches and posting to the general ledger, all of this happens before the School Committee signs the school accounts payable warrant." Note: Once the SC receives the accounts payables, their policy has been to vote to unanimoulsy approve them without ever looking at them. That went on for years until Shawn Kinney began. Now, the vote is 4 in favor, with Shawn abstaining.
• "School Bank Accounts not under Custody of Treasurer and Not recorded on the General Ledger... This “fund” is principally funded by donations from the PTOs, parent donations and some other organizations. .... The deposits are not reported to the Treasurer and the bank accounts are not under the custody of the Town Treasurer. .... The funds/accounts are not audited. This situation is a significant internal control risk that presents the potential for misappropriation of assets. " Note: these accounts, outside of our general budget,totaled over $100,000 when they were discovered by the auditors.
• "The School Department has two different systems for human resource management and for payroll which leads to duplication and inefficiencies."
• "All school accounts payable activity is performed by one person for the entire school system: the Accounts Payable Manager in the School Business Office."
• "The requisition and purchase order process is manual. The school sites/responsibility areas use a four part manual form that must be completed by hand or typed on a typewriter. "
More to come........
Click Here to read the report in its entirety.