Corning Schools Mismanaged $1M
August 7, 2009
The statecomptroller reported Thursday that the Corning-Painted Post school district hadmismanaged more than $1 million in Medicaid reimbursements, purchases and otherexpenses.
But hismessage was one of praise and congratulations.
Askedwhat had prompted his visit to the district’s administrative offices for a newsconference, when hundreds of other audit reports are handled by e-mails andfaxes, Comptroller Thomas DiNapoli said the quick and cooperative response bylocal school officials was an example for other d istricts to follow.
"I’mhere because it’s important to recognize that this is the way it shouldwork," DiNapoli said.
He saidthe audit, which covered July 2006 to September 2007, identified"significant" areas of concern. They included a failure to claimabout $500,000 in Medicaid reimbursements to which the district was entitled;the payment of $527,730 for consulting, legal and training services withoutrequesting proposals; and the payment of $304,207 more in transportation coststhan was allowed.
The auditalso found the district lax in its monitoring of credit card and cell phoneuse.
DiNapoliacknowledged that auditors began their work during Superintendent MichaelGinalski’s first week on the job, in August 2007.
And hesaid, "These are all problems that are correctable. And many of them havealready been corrected." In fact, DiNapoli said, many of the fixes weremade before the audit was complete.
Ginalskisaid the audit helped the district identify serious problem areas and stepswere quickly taken to address the concerns, including the creation of aposition to oversee the district’s Medicaid program.
He saidofficials submitted claims for the reimbursements in question and were able torecover "most" of the money that was lost.
"Wereally welcomed this process with open arms," Ginalski said. Of the creditcard problem, in particular, he said, "Who knows when we would havediscovered it otherwise."
Auditorsfound that the district did not keep a list of those who used credit and procurementcards, and did not have an accurate count of how many people used them.