Business Manager: District 113A Could Owe State Another $295K for Unallowable Transportation Claims

 could owe another $295,000 to the state of Illinois for "unallowable transportation reimbursements" received for the 2009-10 school year, according to District 113A Business Manager Barbara Germany.

During the board's Dec. 20 meeting, Germany and former District 113A Superintendent Tim Ricker conducted by the Illinois State Board of Education. According to the audit, the district received reimbursements totaling $328,956 for its 2008-2009 transportation claim that are "not allowable" by the state.

Reimbursements totaled $305,056 for regular transportation and $23,900 for special education transportation, according to district officials. The money was received by District 113A during the 2009-2010 school year, based on the state's procedure for disbursing transportation funds.

Following the disclosure, the board directed Germany to review the district's past two claims to be sure all claims were accurate and allowable by the state. The results of her study were shared Tuesday night.

After reviewing the documents, Germany found that the claim for the 2009-10 school year was prepared exactly the same as the claim adjusted by the state auditors, creating cause for concern.

Based on her study, the potential exists that the district could owe as much as $295,000 more if the 2009-10 claim is audited, she said.

The issue arose during a discussion of the district's documented financial liabilities, which might not be accurate if the district does owe the state more money, according to Board Member Kevin Doherty.

The issue is particularly pressing, Doherty said, since the district is set to issue another $1.8 million in tax anticipation warrants to  on Friday. Additionally, the state board the district's financial plan Thursday.

"We want to be honest and open and transparent," Doherty said. "We need to inform the auditor and seek guidance."

Germany said she emailed the board about the issue Friday, but all seven members said they hadn't received anything as of Tuesday evening.

Board President Mike Aurelio said he and other board members knew there was probably an issue when they directed Germany to review the claims last month. As of Tuesday evening, however, District 113A hadn't informed the state board of the situation.

Germany told the board she wanted to contact ISBE transportation officials Wednesday morning to determine whether her assessment is accurate and if they foresee any future adjustments. The suggestion was verbally supported by Doherty, Wright, Aurelio and Molitor.

Board Member Al Malley questioned whether it would be better to delay talking to ISBE officials about the issue until after they approve the district's financial plan, which is required to issue the next round of TAWs.

The board ultimately directed Germany to contact the state Wednesday so they can move forward with any corrective action as quickly as possible.

During the Dec. 20 meeting, , which he was notified of in August. He resigned three days later.

According to Germany, the state's auditor found a number of issues with the 2008-09 claim, including inaccurate reporting of student enrollment, non-reimbursable salaries for an emergency operator and administrative assistant, an understatement of fuel money received from the Lemont Park District and a lack of documentation for a conference attended by the district's transportation director.

According to the state, District 113A also incorrectly documented bus leases during the accounting process, which was the most significant reason for the adjustment, Germany said.

In previous years, former Business Manager Bob Beckwith, who was working for the district when the mistakes were made, was the only one looking at the district's transportation claims. Moving forward, Germany said she will work with Pam Mazurek, director of operations for District 113A, to review all claims sent to the state.

The 2009-10 claim discussed Tuesday night was prepared by a different business manager, Germany said. 

Per the state's request, District 113A will cover the audit adjustment for 2008-09 by making reductions in excess of $100,000 to its transportation claims over the next three years.