Lewiston — The office of the State Comptroller has begun an audit of the Lewiston-Porter School District, a representative told the Niagara Gazette Tuesday.
The audit comes on the heels of contentious discussions between board members and district staff involving a teachers union-controlled benefit trust.
“We have begun an audit of the district,” Bill Reynolds of the comptrollers office said. “(It’s) too early to discuss what the scope is going to be or how long I think it’ll last. Check back with me in May.”
Lew-Port Superintendent R. Christopher Roser said he welcomes the audit.
“I am never scared of them, but as far as the trust goes, it’s just so unique,” he said. “I’ve been uncomfortable with the trust since I got here and I am somewhat anxious to know what their findings are.”
The Gazette reported Sunday that a Lewiston-Porter United Teacher’s-controlled health insurance trust has built a positive fund balance of about $3.5 million.
Roser said the comptroller’s office has been on a “fact-finding” mission for some time.
“They came around for a little less than a month ago, looking into efficiencies because the comptroller has been big on that issue,” Roser said. “There must be some things (they have) decided to take a closer look at.”
LPUT President Kevin Jaruszewski said he is aware of the comptroller’s presence.
“I wouldn’t say they are looking into the benefit trust, it’s my understanding they are actually looking into the district,” Jaruszewski said. “If they were looking into the trust they would have contacted us directly and they haven’t.”
Jaruszewski suggested maybe the comptroller was looking at the trust from the district’s end of it.
The health insurance benefit trust is intended to pay for teachers’ health insurance benefits but the district has overpaid the fund each year since 2004. The records indicate the trust’s “net assets or fund balances” at year’s end grew during the five-year period, from $1.5 million in 2004 to $2.075 million in 2005, $2.6 million by 2006, $2.9 million in 2007 and $3.5 million in 2008.
Last month, the school board approved a 120-hour independent study into the fund by the Walsh Firm at a cost of $5,750. Roser confirmed they met with the company last week and results of the probe should be available shortly.
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