Liberty school district officials fix financial mistake

Improper transfer of funds cited in audit

Staff report

LIBERTY

Liberty school district officials say an improper transfer cited in a state financial audit report was the result of misunderstanding.

The annual audit stated the school district transferred $101,865 to the general fund from nine special revenue funds in 2018, which is not allowed by Ohio law except in certain circumstances.

The school board transferred the revenue back to the special revenue funds March 25 of this year to correct the mistake.

School district Treasurer Maureen Lloyd, who started in August 2018 after the transfer occurred, said there was money available in accounts from state and federal grants for programs such as the after-school preschool program.

But after reviewing old documents, school officials believe that the administration and school board may have spent money from the general fund from 2007 to 2012 on those programs.

After conferring with the state department of education and the state auditor’s office about the money in the grant accounts, Lloyd said the school board wanted to put the money into the general fund to reimburse it.

Lloyd and school district Superintendent Joe Nohra said the former treasurer, Bran Panak, took steps to properly transfer the funds, but apparently missed some steps. She said they rectified it, and are working to take the correct steps for a proper transfer.

The financial statements have been adjusted to eliminate the initial transfers from the special revenue funds to the general fund.