Unmatched coverage
The Dayton Daily News is the only local media outlet that regularly reports on audits of your local governments and schools.
The treasurer of the City Day charter school in downtown Dayton repaid $9,409 after the annual state audit of the school revealed two cases in which funds were spent improperly.
Treasurer Jesse Hemphill’s company, Hemphill & Associates, was overpaid by $4,000 during fiscal year 2015, according to the audit, which was released Thursday. A school board-approved contract called for payment of $43,200, plus $9,100 from a previous year. But Hemphill was paid $56,300.
The school response, contained in the audit, says a $300 per month increase, accounting for most of the difference, should have been effective July 1, 2014, but “this approval failed to be documented in the corresponding Board Minutes.”
Hemphill & Associates repaid the $4,000 on Aug. 19.
The other finding involved the school consistently paying late fees on a copier lease contract with Canon from 2013 to 2016. Government spending is required to serve a “proper public purpose,” and late fees don’t fit that definition, according to the audit.
The audit issued a finding of $5,409 against Hemphill, since he was responsible for making payments on time. The audit says the amount was repaid by Hemphill’s liability carrier in July.
The school response, contained in the audit, says the school was unable to pay on time “due to cash flow issues” and that “management viewed these late fees as a form of interest expense associated with the cost of doing business.”
Last year’s City Day school audit found errors in financial statements that the state auditor called “a material weakness.” It also found that six governing board members were overpaid by a total of $4,350, an amount that was soon repaid.
About the Author
