The audit said the school district did not withhold or remit either the employee or employer contributions to the State Teacher’s Retirement System (STRS) for five employees for small payments related to supplemental contracts, substitute teaching, and a bonus.
As a result, the employees were overpaid by a combined $1,206, and the District’s STRS employer contributions were understated by $1,397, according to the audit. Similar but smaller issues with two other employees resulted in an error of just $22.
The state’s report says that from late May to early June, the employees in question either had the appropriate amounts retroactively withheld from their pay, or wrote checks for the amount due.
“The District should establish and implement procedures to verify that payments are made timely and retirement contributions are properly withheld from all employees,” the audit said. “Failure to withhold and remit appropriate contribution amounts could lead to the assessment of penalties and late fees against the District.”
Northwestern Schools Treasurer Jenna Ashbaugh emphasized the audit’s mention that all pension contribution issues have been corrected and resolved.
“The errors happened during transition of payroll directors and was simply human error and an oversight during a hectic time in the Treasurer’s Office,” Ashbaugh said.
Other than the finding for recovery, the audit gave an “unmodified” or generally clean opinion on the district’s financial statements.
