Marion Central School District – Tuition Reimbursements (2016M-11)

Issued Date
April 08, 2016

Purpose of Audit

The purpose of our audit was to examine the District’s tuition reimbursements and supporting documentation for the period July 1, 2012 through January 6, 2016.

Background

The Marion Central School District is located in the Towns of Arcadia, Marion, Ontario, Palmyra, Sodus, Walworth and Williamson in Wayne County. The District, which operates two schools with approximately 790 students, is governed by an elected five-member Board of Education. Budgeted appropriations for the 2015-16 fiscal year are approximately $17.9 million.

Key Findings

  • Although the District has written procedures regarding the tuition reimbursements process, they were inadequate because no final review is performed before payment is made to the employee.
  • The District’s written employment separation process procedures do not contain steps to verify that employees have fulfilled any post-reimbursement employment obligations.
  • District officials made two payments totaling $4,932 that we confirmed to be overpayments because the employees failed to meet the credit hour or grade level requirements necessary for reimbursement.

Key Recommendations

  • Develop written procedures that require an independent review of tuition reimbursements before they are made. This review should ensure that calculations comply with contracts and that payments are made only after receiving proper documentation.
  • Ensure written employment separation procedures include steps to verify that employees have fulfilled any post-reimbursement obligations.
  • Seek recovery of the $4,932 in tuition reimbursement overpayments.