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WEBSTER CENTRAL SCHOOL DISTRICT NEW YORK
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COMMUNICATING INTERNAL CONTROL RELATED MATTERS IDENTIFIED IN AN AUDIT For Year Ended June 30, 2026
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____________, 2026
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To the Board of Education Webster Central School District, New York
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In planning and performing our audit of the financial statements of Webster Central School District (the District) as of and for the year ended June 30, 2026, in accordance with auditing standards generally accepted in the United States of America, we considered the District’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.
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Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. We did not identify any deficiencies in internal control that we consider to be material weaknesses. However, as discussed below, we identified certain matters involving the internal control and other operational matters that are presented for your consideration. This letter does not affect our report dated ________, 2026 on the financial statements of the District. We will review the status of these comments during our next audit engagement. Our comments and recommendations, all of which have been discussed with appropriate members of management, are intended to improve the internal control or result in other operating efficiencies. Our comments are summarized as follows: Current Year Deficiencies in Internal Control: Payroll –
As part of our review over payroll procedures, we noted the following:
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1. One instance in which an employee’s wages were not being reported to the ERS system. 2. One instance where an employee’s pay rate increase was not formally approved by the Board.
We recommend the District review these items and develop the necessary corrective action during this next fiscal year.
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(Current Year Deficiencies in Internal Control) (Continued) Overtime Reporting As a result of the change in legislation, the District is required to calculate and include qualified tax-exempt overtime in the employee’s W-2 at the end of this year. Qualified overtime based on the new legislation may be inconsistent with overtime as defined in current contracts. In response, the software companies have attempted to address the issue, however, it may still require a manual review of overtime to ensure the qualified overtime is consistent with the new legislation. The District is currently evaluating this procedure and developing the specific process to be implemented.
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We recommend the District make every effort to update their payroll reporting procedure as soon as possible to comply with the new reporting requirements. In addition, once implemented an independent review of that calculation should be completed to ensure what is included in the payroll register and subsequent W-2 is correct.
Prior Year Recommendation:
The following prior year recommendation has been implemented to our satisfaction.
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1. For those items tested, the correct number of written quotes or documentation to support piggybacking were obtained according to District Policy.
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We believe that the implementation of these recommendations will provide the District with a stronger system of internal control while also making its operations more efficient. We will be happy to discuss the details of these recommendations with you at your convenience. This communication is intended solely for the information and use of management, the Board, audit committee, and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. We wish to express our appreciation to the business office staff for all the courtesies extended to us during the course of our examination.
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Fairport, New York ___________, 2026
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