Accounting errors by outside contractor forces Corbett schools to make mid-year cuts

The Corbett School District plans to cut three teachers, three administrators, and four educational assistants next month after it discovered "significant accounting errors" by an outside contractor. The Multnomah Education Service District (MESD) told KATU that one of its employees is to blame.

"I can’t even express how frustrated I am that we are in this situation," said Corbett Superintendent Dr. Derek Fialkiewicz.

The district must cut about 20% of its budget to balance its finances after the errors resulted in a roughly $3 million deficit.

Fialkiewicz said the district is "trying to do what’s best for our students yet also looking at the long-term effectiveness and efficiency of our district."

A spokesperson for MESD said the errors were made by an employee who was contracted with CSD as a "business manager" for "several years."

"This employee is no longer with MESD," they said, adding that the errors "falsely inflated CSD’s budget, so they overspent at levels based on inaccurate information."

The district and MESD said there is no indication of fraud or theft.

According to Fialkiewicz, the errors occurred over a roughly three-year period and cost the district about $1 million. The district identified the errors in August after hiring an "in-house CFO" who started in July.

Fialkiewicz declined to identify MESD as the contractor or to explain his nondisclosure.

The MESD spokesperson said the agency is working with Corbett schools to "identify potential solutions, including working with our insurers."

Fialkiewicz said the district is seeking a loan to prevent additional cuts but declined to say the amount they’re seeking or the potential source.

Leaders of the teachers’ union in Corbett schools told KATU they fear additional staff cuts may happen if the district can’t secure a loan.

"As we understand it, the district may not be able to make payroll even by the end of winter or into spring," said Zach Goude, the secretary of the Corbett Education Association.

The union’s contract with the district expires in June. Co-President Carrie Church said they are considering extending the contract instead of negotiating new terms because of the budget situation.

FULL STORY: https://tinyurl.com/5db4yexy

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Author: KATU News
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News post in at: November 20, 2024, 3:03 am.

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