06/05/2025 | Press release | Distributed by Public on 06/05/2025 08:31
For Immediate Release
COLUMBUS - Compensation paid to a former Girard City Schools treasurer was careless, extravagant, and not representative of necessary business practices, auditors determined in a review of the district's finances released Thursday.
The district's board of education should exercise better diligence in reviewing and approving employee contracts to prevent similar payouts in the future, Auditor of State Keith Faber said.
"While not illegal under state law, this was an abuse of public resources that should not have been allowed," Auditor Faber said. "The school board was asleep at the wheel, and the district's taxpayers paid the price."
The issue was noted in an audit of the district's finances from July 1, 2023, through June 30, 2024. The full report is available online at ohioauditor.gov/auditsearch/search.aspx.
While auditors did not identify any findings for recovery, they did recommend additional policies and procedures and legal reviews of employee contracts after a former treasurer received quadruple his contracted base pay due to a stipend included in his contract that was OK'd by the board of education.
The treasurer retired and was rehired by the school board in June 2022. The approved contract included a base pay of $110,000, plus a stipend of 1% of all federal, state, and local grants and certain other revenues received by the district.
In fiscal year 2024, the treasurer was paid $443,568, which include his base pay plus a $312,165 stipend. Additionally, his compensation included a $5,750 car allowance and an $11,146 leave balance payout. The district also paid his pension contribution of more than $30,000.
Auditors noted that 2024 pay total was "excessive" and that the district did not have rules or policies in place regarding the employee retire/rehire process.
The same "Noncompliance, Waste and Abuse" finding was included in the previous fiscal year audit, when the treasurer was paid $461,187, including base pay of $118,078 and a stipend of $325,918.
"… The district is at risk of excessive payments to employees, which could ultimately result in unnecessary costs or inefficient operation and misuse of funds," auditors wrote. "Without thorough review and approval of all contract changes by both the board of education and outside legal counsel, there is a risk that district funds could be misallocated."
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The Auditor of State's Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.
Public Affairs Contact: Marc Kovac press@ohioauditor.gov