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Audit Finds School Treasurer Overpaid Himself $84,814

Thursday, December 29, 2011

Columbus – The school treasurer of the now-closed Nu Bethel Center of Excellence received more than four times his authorized salary, according to the closeout audit of the school released today by Auditor of State Dave Yost.

“A school board exists for a reason,” Auditor Yost said.  “When officials disregard it or do not get proper approval, public dollars are put at risk.  Closed or not, this money must be returned to Ohio’s taxpayers.”

On June 22, 2009, the board approved the 2010 budget and the amount to be paid for treasurer services at $24,000.  On July 1, 2009, Treasurer Carl Shye, Jr. and the Board President James Willis entered into a contract for fiscal services at the amount of $60,000 annually for the 2010 fiscal year, plus $40,000 for services provided in prior years.  The contract was never formally ratified by the members of the board, and therefore is not considered legal.  Shye was paid $108,814 with checks dated July 8, 2009 through November 3, 2010.  Since the board-approved compensation was set at $24,000, Shye was overpaid by $84,814 and was issued a finding for recovery in that amount.

From December 9, 2009 through June 29, 2010, Shye was issued five checks totaling $5,555.  These five payments lacked the adequate support showing that the goods and/or services had been provided.  Original invoices were not provided, and there was no documentation indicating that the board approved the expenditures.  Therefore, the public purpose for the expenditures could not be determined, and Shye was issued findings for recovery in the total amount.

The school received citations noting errors in their financial reporting that required adjustments to correctly report the school’s financial activity.  The Internal Revenue Service is being notified that the school owes $15,899 for Medicare taxes and $44,071 for federal income taxes.  A referral is being made to the Ohio Department of Taxation that the school failed to remit $4,459 in withholdings.  The school also withheld City of Dayton taxes for employees who were not subject to those taxes.

The Nu Bethel Center of Excellence ceased operations on June 30, 2010.

A full copy of this audit may be found online.

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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 5,600 state and local government agencies.  Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Contact:
Carrie Bartunek
Press Secretary
614-644-1111