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Seaman USD 345 board taps contingency after Medicaid reimbursement error
Summary
The Seaman USD 345 board voted to declare a contingency and allocate up to $230,900 from its contingency reserve after a state audit found a multi‑year error in school‑based Medicaid reimbursements processed through a contractor, officials said.
The Seaman USD 345 Board of Education voted to declare a contingency and authorize up to $230,900 from the district contingency reserve to cover expenses while the state adjusts school‑based Medicaid reimbursements, a district official said.
The district learned this month that a denominator/numerator error affecting Medicaid reimbursements submitted through a state contractor, Public Consulting Group (PCG), had affected multiple years of payments. "Over the past seven years since 2017, each of those years has had an incorrect numerator," the district's business official told the board. The state and its vendor are requiring a look‑back and recovery of funds the federal program concluded were overpayments.
The board motion read in full that the board would "declare a contingency due to an error by PCG contracted through KDHE and school‑based Medicaid reimbursement to allocate up to $230,900 to be spent from contingency reserve to cover the expenses." The motion was moved and seconded and passed on a voice vote; the meeting record did not include a roll‑call tally. The board president said the district will repay the amount from a future payment the state will withhold.
Business staff told the board the state has allowed an extended period (commonly 30–60 days) for districts to return the funds, but the district must ultimately reconcile the amounts within about a year. District leaders emphasized the contingency reserve exists precisely for unexpected liabilities. "We are very fortunate that we have put money into our reserves," the business official said, adding that without that reserve the district would be in worse shape to absorb the refund requirement.
Board members asked whether the vendor has insurance or will be held accountable; district staff said they have asked that question but had not yet received a definitive answer. The business official said the district expects follow‑up from state and vendor representatives and will seek accountability where appropriate.
The board chair and multiple members urged continued growth of the contingency reserve to limit disruption from future unanticipated liabilities. The motion passed and the board moved on to other business.
