A state audit released on Tuesday found tens of thousands of dollars distributed by the East Liverpool School District when they were not supposed to or didn't have the money.

A 117 page report shows the school overpaid or made unallowed payments multiple times in 2022 and 2023. 

The state auditor found the school spent nearly $25,000 in federal grant money without getting the right approval. 

17 expenditures “did not obtain sufficient prior approval” including the Patterson Field project, scoreboard, gym floor resurfacing, electrical repairs, garage roof repairs, gymnasium sound system, boiler repairs, security cameras, riding floor scrubber, copiers, a tractor, classroom expansion project and an ice machine. 

Since the school used federal money for those expenditures, the U.S Department of Education does have the option to recover those funds.

A statement from Superintendent Jonathan Ludwigg said in part “...these findings primarily stem from differences in interpretation regarding allowable expenses and reporting practices under state guidelines. Importantly, the audit found no evidence of fraudulent use of district funds.”

The audit also details nearly $3,700 in charges to the schools credit card that weren't allowed. The school Superintendent Ludwig made a purchase for $408.91 and Communications Director Megan Herandez made two purchases totaling $3,339.61 that were not allowed. 

Superintendent Ludwig said these were purchases for student incentives and tips and that they “were made in support of staff and students and aligned with district goals but required clearer documentation to meet specific state reporting requirements.”

Additionally, the audit found the school overspent $1,409,222 from the General Fund and almost $19,357 from the food service fund in June of 2023. 

“Failure to have adequate appropriations in place at the time expenditures are made could cause expenditures to exceed available resources, further resulting in deficit spending practices,” the audit states before recommending the Board of Education closely monitor expenditures. 

The district submitted a plan for corrective action in which they committed to reviewing their procedures and denying future budget requests that exceed the amount the district has on hand. 

Other corrective action the district agreed to include getting prior approval for any questionable expenses and creating a file for expenses in excess of $25,000 to track the vendors and make sure they are approved. 

School board president David Hamilton explained the overages as being the result of rising costs. 

"As a district, each year we estimate what our appropriations (budget) will be.  Due to rising inflation and the cost of supplies, energy, etc., our spending outpaced the appropriation we estimated for the year.  The fix is simple, just amend the appropriation filing to the larger amount.  We did not know we needed to do this until the audit brought it to our attention.  That is why we welcome these audits.  It was and is an easy fix.  We feel its misleading to say we overpaid or overspent," Hamilton wrote in an email. 

Hamilton also pointed out that the state auditor has accepted their corrective action plans. 

"The audit process is an organic process where deficiencies (findings) are brought to the district by the auditor and a corrective action plan is completed in conjunction with the auditor.  Our corrective action plans were approved and accepted by the auditor. Findings during this process are an opportunity for growth within the district and we welcome the help they provide," Hamilton wrote. 

The school Treasurer, Anson Wiegand, said the only action taken will be restitution.

"Managing a $37 million annual budget requires a steadfast commitment to transparency and continuous improvement, values that East Liverpool City School District upholds with great pride," Superintendent Ludwig said in a statement. "...We remain dedicated to the highest standards of financial accountability, ensuring that all district funds are used to support students, staff, and the community."

The full audit findings can be found here. The full response from the school district can be found here: