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District reports $2 million tax overpayment from county software error; funds repaid next day
Summary
Mount Vernon City Schools officials told the board a county auditor software error caused an approximately $2 million overpayment in the district's tax advance; the district returned the funds by ACH the following day and clarified its cash balances for reporting.
District finance staff told the board that a software error at the county auditor's office caused an overpayment of roughly $2,000,000 in the district's third tax advance and explained how the repayment affects current reporting.
During the fiscal-services report, the presenter said the auditor's office "overpaid us by about $2,000,000" on the third tax advance and that the auditor asked for immediate repayment. The district performed an ACH return the next day. "They wanted it back right away," the presenter said, and staff returned the funds via direct deposit.
The presenter cautioned that the district's published cash figures include that temporary overpayment and other timing items, so some outstanding payroll and bank-error lines look larger than actual. He said the $29,000,008.85 cash balance shown in the report includes the $2,000,000 that was not the district's to keep. He also noted the district will receive additional distributions later in the year and that tangible personal property and state rollback amounts remain unsettled.
Board members asked how quickly the auditor recognized the error; the presenter said some treasurers noticed immediately and that the county's bank and the auditor's software provider also detected the issue, and that a new software company will handle the next distribution in August.
The board voted to approve the fiscal items as presented; members recorded their votes and the motion carried.
