State Reviewing Past District 113A Transportation Claim for Possible Errors

The Illinois State Board of Education staff are reviewing past transportation reimbursements to  after the district's business manager informed them Wednesday morning that a claim may have been filed incorrectly.

District 113A Business Manager Barbara Germany confirmed Wednesday evening that she spoke with staff in the ISBE External Assurance department regarding a potential issue with the district's transportation claim for the 2009-10 school year.

Germany that the possibility exists that the district could owe another $295,000 to the state of Illinois for "unallowable transportation reimbursements." The district for a transportation audit adjustment for the 2008-09 school year.

Board members directed Germany to review the district's past two transportation claims after they learned of the audit adjustment Dec. 20.

After going through the documents last week, 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.

Per the board's request, Germany called the state board Wednesday morning. She was told the district would be contacted Friday after auditors have had a chance to review the claim in question.

"I really want to stress that my concerns have not been verified by the state auditors," Germany said. "I took a cursory glance at the documents, but I'm really not sure what the state will say. That's why I wanted to contact them today to see if the claim was prepared appropriately."

The issue arose during the school board's discussion of its 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."

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. 

Germany told the board she wanted to contact ISBE staff 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 immediately so they can move forward with any corrective action as quickly as possible.

Although ISBE officials discussed District 113A's financial plan during a , there was no mention of any transportation claims.