Taylor Releases Audit of Zanesville City School District

Tuesday, June 10, 2008

Zanesville -

Auditor of State Mary Taylor today released the audit of the Zanesville City School District for fiscal year 2007. The audit recommends improving budgetary controls for a school district currently experiencing financial instability.

The Ohio Department of Education placed the Zanesville City School District in fiscal caution on March 2, 2006. ODE accepted the district’s fiscal caution financial recovery plan in February 2007 which included steps to reduce spending.

“District administrators should be commended for establishing a financial recovery plan to help restore financial stability but more action is needed,” Taylor said. “Improving controls over budgeting and spending is a step in the right direction.”

The audit outlines several findings which could lead to further financial instability if left unchecked. Those findings include:

  • Approving expenditures that exceed estimated revenues
  • Spending more money than board members approved for the annual budget
  • Entering into an employee severance agreement without verifying that funds were available

The audit also indicates that issues related to the destruction of certain documents have persisted. The documents detail the use of some federal grant funds and the finding was outlined in the district’s last audit report as well. Federal regulations require a three-year retention period for documents supporting the spending of federal grant money. A district’s future funding is potentially jeopardized if proper documentation is not retained or if grant money is spent outside the parameters of federal regulations.

A copy of the complete audit is available online at www.auditor.state.oh.us.