Community Update

State Audit:  SD improper fund transfers

I just came across an article by Chanda Neely, cleveland.com (http://www.cleveland.com/university-heights/index.ssf/2013/10/state_audit_finds_duplicate_ch.html#in...) on a report following the state's audit of the disctrict finances.

That would explain why the CHUH School District had not released its financial statements by the required July 15 deadline.

I have not yet read the audit report, but I do wonder how mishandling $12 million in transfers cannot be considered some level of malfeasance.  I cut a section from Ms. Neeley's article below:

Others listed in the report as making unsupported credit card
purchases include Gainer ($18), Director of Communications Angela Shaker
($192) and Director of Business Services Stephen Shergalis ($45). All
have repaid the district for the purchases.

"The state requires
that employee credit card reimbursements for district expenses be more
detailed than was previously accepted," Ganier said. "After learning of
this, the employee expenses had to be reimbursed back to the district,
which has taken place.  That detail requirement is now in place for
reimbursements and will be the practice going forward."

The
audit also found material weaknesses in the district’s financial
reports, including late and misposted receipts and figures, and a
misbalancing of funds in seven of the 12 months of 2012 that resulted in
a $19,824 difference in the balance on record at the bank and in the
district’s records.

Other findings show the district did
not properly document the approval of fund transfers and balances and federal
disbursements. The district made $914,388 in transfers and $12,164,250 in
advances last year without formal board approval documenting the amount, purpose or time
frame or repayment of an advance. Instead of the required formal transfer or
advance resolution, the amount of the advances or transfers was included within
the overall appropriation measure and not clearly marked as either transfer or
advance. The school board then approved all transfers and advances in detail at
the end of the fiscal year end.

The district reportedly has implemented
new policies to remedy the issues.