Controller finds tuition‑reimbursement overpayments and uncollected amounts; administration to revise tracking

The Allentown city controller presented an audit of the city's tuition reimbursement program covering 2023 and 2024 and identified several instances of noncompliance and overpayment that the controller recommended be collected and prevented in the future.

The audit found two non‑bargaining employees who left the city before completing the one‑year repayment period and had not returned a total of $9,587.50 to the city. The controller’s office also identified calculation errors that led to an overpayment of $1,050 in 2023 and an overpayment of $250 in 2024 for employees who remain on city payroll. The audit flagged reimbursements for credit card service fees and payment plan fees as inconsistent with city practice.

“We found noncompliance with the policy that requires returning tuition reimbursement if employment ends before a full calendar year has passed,” the controller said in presenting the report. The controller recommended billing former employees where appropriate, retraining approvers and revising the tuition‑reimbursement form to reflect varying limits by bargaining unit.

Administration officials acknowledged the findings and told council they will develop a process to track and bill overpayments and that proposed changes will coincide with a personnel management rollout or new SEI contract. Human Resources director Velasquez (first name not specified in the record) agreed to work on form revisions and improved documentation; administration set a target for completion by the end of 2025.

The audit also recommended clearer documentation that reimbursements are in fact reimbursements (payment first, then reimbursement) and that grade or completion evidence be consistently required. Council members did not take separate action at the meeting beyond accepting the report and encouraging administration follow‑through.