The Clarkstown Central School District in Rockland County, N.Y., following an independent audit, has begun implementing procedures to better track capital projects and prevent adverse exposure to federal tax laws regarding accounting for bond proceeds.

The audit, completed in June by the accounting firm O’Connor Davies Mumms & Dobbins LLP, reported that the district had borrowed funds that were not used within the time permitted under Internal Revenue Service arbitrage rules. The audit also found that capital projects were not closed in a proper manner and that although the district submitted a five-year capital plan to the state as required, it did not use the plan internally.

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