WEBSTER CENTRAL SCHOOL DISTRICT Brian Freeman, Assistant Superintendent for Business 119 South Avenue, Webster, NY 14580 (585) 216-0017 brian_freeman@webstercsd.org
Brian Neenan, Superintendent From: Brian Freeman, Assistant Superintendent for Business Re: 2025-26 Audit Corrective Action Plan Cc: Board of Education, Audit Committee Date: 9/29/2026 The findings and corrective actions are broken down below. Italicized comments represent the corrective action to the findings listed above it in bold lettering. Current Year Deficiencies in Internal Control - Payroll:
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As part of our review over payroll procedures, we noted the following: 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.
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The staff member identified during audit sampling was appointed two decades ago as a part-time per diem worker under legacy onboarding protocols. Current hiring procedures mandate that all newly onboarded personnel enter through human resources system requisition forms, ensuring in-person delivery and tracking of ERS enrollment documentation. As permitted for part-time staffing positions, this individual declined retirement system election. Furthermore, compensation updates for all returning per diem and part-time staff members are annually established and formally ratified by the Board via comprehensive authorization resolutions during the annual organizational meeting. Overtime Reporting:
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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. The District will collaborate with the payroll software vendor to fully implement and test automated routines for identifying tax-exempt qualified overtime in accordance with the new legislative guidelines. The payroll department will develop a standardized manual crosswalk and review process to resolve any discrepancies between contractual overtime definitions and tax-exempt legislative definitions. In addition the department will establish an independent secondary review process conducted by a designated Business Office personnel that do not work in payroll to verify all qualified overtime calculations against the payroll register before final W-2 processing in December of 2026. Prior Year Recommendations: The following prior year recommendation has been implemented to our satisfaction: 1. For those items tested, the correct number of written quotes or documentation to support piggybacking were obtained according to District Policy.