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Audit: Omaha Schools received $5.6M overpayment
Thursday, February 7, 2013    
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State education officials say they're correcting an Omaha Public Schools accounting error that resulted in a $5.6 million overpayment in special-education funding, which in turn short-changed every other public school district in Nebraska.

LINCOLN, Neb. (AP) - State education officials say they're correcting an Omaha Public Schools accounting error that resulted in a $5.6 million overpayment in special-education funding, which in turn short-changed every other public school district in Nebraska.
 
     The Nebraska Department of Education discovered the error while conducting a yearly financial review. Department finance director Shane Rhian said Tuesday that the district mistakenly claimed expenses from the state over a two-year period that had already been reimbursed with federal stimulus money.
 
     The overpayments during the 2009-10 and 2010-11 school years resulted in less funding for other districts. For instance, state auditors found that Lincoln schools were underpaid by nearly $885,000.
 
     State Auditor Mike Foley says he believes the discrepancy was unintentional. But he says he finds it "remarkable" that the error went through unnoticed.

 

(Copyright 2012 by The Associated Press.  All Rights Reserved.)

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