Audit Objective
Determine whether separation payments were calculated correctly and supported by employee contracts.
Key Findings
- The former Business Manager’s separation payment was inadequately supported, and he was overpaid by $16,700.
- The District paid the former Business Manager’s separation payment totaling $84,063 over a period of time, including $64,063 before his effective retirement date.
- The District inappropriately provided an advance of $15,000 of separation pay to the former Business Manager.
Key Recommendations
- Provide an independent review and approval of separation payments.
- Discuss the separation overpayment to the former Business Manager with the District’s legal counsel and take appropriate action to recover funds.
- Discontinue paying separation payments prior to the employee’s resignation/retirement date.
Except as specified in Appendix A, District officials generally agreed with our recommendations and indicated they planned to take corrective action. Appendix B includes our comment on an issue raised in the District’s response letter.