NORWOOD – State auditors have criticized how some bills were paid by Norwood-Norfolk Central School to creditors without sufficient documentation.

The objective of the audit, according to the state comptroller’s office, was to examine the way district conducted its own audits of claims for payment.

They wanted to know if claims were adequately documented for appropriate district purposes and properly audited and approved prior to payment.

District officials contracted with St. Lawrence-Lewis BOCES to audit district claims, and a BOCES employee audited all district claims including those for BOCES-provided services, auditors said.

“Because the district is one of BOCES’ component districts, this arrangement was inappropriate because the BOCES claims auditor approved claims submitted by her employer, which compromised the auditor’s objectivity and independence,” the audit said.

The state auditors found that “the BOCES claims auditor inappropriately audited and approved 19 claims submitted by her employer for contract services and employee health insurance payments totaling approximately $4.6 million. The BOCES claims auditor and the District’s prior claims auditor approved BOCES health insurance claims for payments totaling almost $3.6 million that lacked detailed supporting documentation,” the audit reports said.

One item specifically mentioned by auditors was one claim for a grant contract with BOCES, audited and approved by the BOCES claims auditor, was approved and paid in December 2015, six months before the services were received.

They also found four claims totaling $1,573 lacked departmental approval, and nine claims totaling $11,804 lacked documentation showing the goods or services were received.

“The lack of a properly established claims audit process places the District at risk that erroneous or irregular claims could be paid. It was inappropriate for the BOCES claims auditor to review and approve claims for BOCES services because the District made material and significant contract payments to BOCES.

The auditors recommend that the district ensure that the BOCES’ claims are audited and approved by someone other than the BOCES claims auditor, and that the claims auditor should not authorize the payment of claims before the related goods or services have been received, “and should ensure that claims contain adequate supporting documentation before authorization.

The district acknowledged the shortcomings and said they were working on a plan for corrective action which they said they would submit to the comptroller for approval.

The report contained no allegations of intentional wrongdoing by anyone at BOCES or in the district.