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East Cleveland board approves $2,192 write-off for fraudulent checks, adopts temporary appropriations and transfers
Summary
The board approved a resolution to write off $2,192 in fraudulent checks tied to Key Bank transactions from June 2023, implemented positive-pay banking controls and adopted temporary appropriations at 25% of FY2025 expenditures; it also approved a package of advances and transfers including athletics and ARP ESSER reconciliations.
The East Cleveland City School District board on June 30 approved a series of finance actions: a resolution to write off $2,192 in fraudulent checks the district has carried on its books since June 2023, temporary appropriations to begin the 2025–26 fiscal year at 25% of FY2025 expenditures, and multiple advances and transfers to zero-out negative cash balances and reconcile federal grants.
Finance committee chair Shireine Fountain told trustees the fraudulent items were detected in 2023 and remain unresolved with Key Bank. She said the district’s CPA recommended writing the amount off so auditors would see the item closed on the books while the district continues to pursue recovery through the bank’s investigation. “We’re going to write this off as fraudulent checks,” a staff speaker said; trustees were told the district implemented positive pay at Key Bank after the incidents and has not seen further check-cashing fraud since that control was put in place.
On temporary appropriations, staff explained Ohio law allows districts to start the new fiscal year by appropriating 25% of the prior year’s expenditures. The presentation cited a fiscal-year-to-date expenditures figure of $75,890,324.75 used to calculate the 25% starting appropriations; permanent appropriations will be brought to the board before the finalized fiscal-year budget.
Trustees also approved advances and transfers to cover negative cash balances in several funds pending state reimbursements and to settle longstanding grant reconciliations. Examples provided during the meeting included a transfer into the Shaw High School band account ($81,673.83), athletics transfers totaling approximately $121,336.38 for Shaw and $17,675.78 for Kirk Middle School, ARP ESSER reconciliation items cited at about $273,180.77, and a preschool ARP ESSER overspend of $9,860.35. Staff explained the state’s drawdown window closes June 5, which creates the need to advance funds temporarily into those accounts until reimbursements resume after July 1.
Board members asked several questions about bank handling and timelines for reimbursement; staff said they would provide the board documentation on the monthly cost of the positive-pay service and would notify the board if Key Bank returns any refunded funds. The finance resolutions passed by the board during the meeting.
