Corbett School District offered $2 million loan after ‘accounting errors’

This week, the Multnomah Education Service District offered a loan to the Corbett School District after one of its employees contributed to the district’s roughly $3 million budget shortfall.

MESD on Monday told KATU that the now-former employee was contracted to manage the district’s finances for "several years" and made "errors." It sent a letter to the community later in the week explaining that the employee improperly documented employee health care expenditures.

"While CSD paid its health care premiums, these expenses were not accurately reflected in their financial statements," MESD wrote.

As a result of the ensuing budget shortfall, the district plans to cut 1.5 teacher positions, three administrators, and four educational assistants next month.

The MESD board voted to give Corbett School District $700,000 in state funds, which the district will have to repay, as well as to offer CSD a $2 million loan to help in "stabilizing its finances."

"MESD regrets contributing to the current situation at Corbett School District and its impact on staff and students. We are committed to partnering with CSD to identify sustainable solutions and support their community through this process," the MESD said in a letter to the community.

Superintendent Derek Fialkiewicz told KATU that even with the loan, the staff cuts planned for next month will remain.

"Those are going to be long-term cuts," he said. "Those are cuts that are going to get us moving forward to financial stability and rebuilding our ending fund balance."

Fialkiewicz, who started in 2022, told the CSD community that the years of financial errors went unnoticed because of reassurances from inside the district, and because routine audits search for fraud rather than mistakes.

The Corbett School Board must vote to accept the loan, although Fialkiewicz is optimistic it will be approved.

"It’s really close. It’s just a matter of financial details," Fialkiewicz said. He declined to describe the terms of the loan.

The board’s next meeting is scheduled for Dec. 18; however, a special session could be called to address the matter sooner.

https://katu.com/news/local/multnomah-education-service-district-offers-corbett-school-district-2-million-loan-after-accounting-errors

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Author: KATU News
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News post in at: November 25, 2024, 3:00 am.

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