The Plainedge Union Free School District said that it will strengthen its internal controls and policies over district spending after a recent state comptroller's audit of two years of administrative expenses found significant weaknesses but no evidence of wrongdoing.

The district did not adequately review expense claims to determine that spending was done for legitimate purposes, lacked written policies and documentation for expenses, and failed to provide independent oversight of spending, according to the audit released by State Comptroller Alan G. Hevesi. The audit also noted that district officials had recently improved some procedures, including requiring the review of all expense claims, hiring an internal claims auditor and hiring an external CPA firm to conduct a more in-depth audit.

"While the weak financial controls and processes found at the Plainedge School District should be improved to better protect public monies, auditors found no instances of wrongdoing or misuse of funds," Hevesi said. "I commend the district's efforts to improve its financial procedures and urge it to adopt the remaining recommendations from the audit."

Auditors recommended the district:

*Review the claims paid in July and August 2004 to ensure they were actual and necessary expenses and take action to recover funds if they are not.

*Develop written policies concerning district credit cards that outline when and how officials can use the credit cards and specify the required documentation to support the charges.

*Evaluate the former president of the board of education's claim for travel expenses to Orlando, FL, and take action to recover funds if they are not appropriate.

*Comply with the board of education's policies regarding travel and conference attendance by submitting travel vouchers, itemized receipts, and approved conference attendance forms.

*Require that every claim contains enough supporting documentation to determine that it complies with district policies, and that the amount claimed represents actual and necessary expenses.

*Develop written policies outlining when the district may provide meals and refreshments to employees at meetings, when it is appropriate to provide internet services in the homes of district officials, and the use of cell phones.

*Segregate the duties currently performed by the treasurer.

In a written response to the audit, the district generally agreed with the audit findings, detailed additional efforts to safeguard resources, and noted that many of the recommendations from the auditors were not required by law but rather, were best practices. The full response from the district is included in the audit. The audit also contains a response to taxpayer complaints sent to the comptroller's office that were investigated as part of the audit. This is the second of the 21 Long Island school district audits to be completed.