An audit by the New York State Comptroller’s Office found that Riverhead Central School District officials did not provide the board of education with complete and accurate financial information in a timely manner, limiting the board’s ability to monitor the district’s financial operations.
The audit covered July 1, 2022 through April 30, 2024. It found problems across multiple areas of the district’s financial operations, including late and inaccurate monthly reporting to the board, weak internal controls in the business office, and budget transfers that were not properly approved or reported.
The comptroller announced the audit in a press release Tuesday afternoon.
Key findings
The audit made three substantial findings:
• The treasurer’s monthly reports were not always accurate, complete and submitted in a timely manner.
• The treasurer’s duties were not segregated and there were no adequate compensating controls.
• Budget transfers were not properly approved and reported.
In its audit summary, the comptroller’s office reported:
• Six of 22 months of financial reports were submitted to the board between 60 and 107 days after month’s end.
• None of 141 bank transfers totaling $127 million were reviewed and approved by someone other than the treasurer before the transaction took place.
• None of 47 budget transfers totaling $12.3 million were approved by the board.
“When the board is not provided with sufficient information, and financial reports are not accurate, complete and submitted in a timely manner, the board’s ability to adequately and effectively monitor the district’s financial operations is limited,” the audit summary states.
Leadership, business office turnover during audit period
The audit period also coincided with turnover in key business-office and leadership roles. The comptroller noted that during the audit period there were three superintendents, two assistant superintendents and three district treasurers.
The audit period began a little over a month after a new assistant superintendent for business, Rodney Asse, was hired by then-Superintendent Augustine Tornatore. Tornatore resigned abruptly in October 2023. Asse told RiverheadLOCAL on the same day Tornatore’s resignation was made public that he, too, was leaving the district. Asse was administratively assigned at home with full pay and benefits until Dec. 25, 2023, when his resignation became effective.
The school board hired an interim superintendent and an interim assistant superintendent for business. Interim Superintendent Cheryl Pedisich held the position from Oct. 30, 2023 until June 30 this year. The board also appointed Interim Assistant Superintendent for Business Marianne Cartisano, who remains in the post to date.
The board this year hired a new superintendent, Robert Hagan, who took office July 1.
During the audit period, there was turnover in the district treasurer’s position as well. Janette Velardi, who had been the district’s purchasing agent, was appointed district treasurer as of July 1, 2022, succeeding longtime treasurer Nancy Raynor who held the post for 16 years. Velardi was replaced as treasurer in June 2023 by Jeffrey Bogdan. Bogdan was succeeded in March 2024 by Joseph Crocco, the current treasurer.
Corrective action plan required
The school board, which is ultimately responsible for financial oversight and management of the district, has the responsibility to initiate corrective action, the audit report states.
The audit states that the board “has the responsibility to initiate corrective action” and must prepare a written corrective action plan within 90 days that “addresses the findings and recommendations in this report.” The plan “should be posted on the district’s website for public review,” and implementation must begin by the end of the next fiscal year “to the extent practicable.”
The school district responds
In a Nov. 19, 2025 letter signed by board of education president James Scudder and Superintendent Robert Hagan, the district said it received the audit report on Oct. 21, 2025 and determined that its “findings and recommendations appear to be accurate.” The letter says the board is preparing a written corrective action plan and that it will be filed with the comptroller’s office and the state Education Department and made available to the school community.
In a phone call Tuesday, Hagan declined additional comment beyond the letter and said the district would be taking action at a board meeting in January.
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