CHILLICOTHE, Ohio — In a recent financial audit, the state of Ohio scrutinized the financial affairs of the Chillicothe City Schools, revealing a concerning excess of late fees paid to a local bank for credit card transactions. These audit findings have emerged in the midst of an election year, potentially impacting voters’ perspectives on the matter.
The legal context surrounding this audit draws from the case of State ex. Rel. McClure v. Hagerman, as outlined in Ohio St. 320 (1951). This precedent dictates that expenditures made by a governmental unit should primarily serve a public purpose, with the determination of what qualifies as a “proper public purpose” typically resting within the judgment of the governmental entity itself, unless it is deemed arbitrary or unreasonable. Even when a purchase is considered reasonable, Ohio Attorney General Opinion 82-006 emphasizes that it must be officially documented through a duly enacted ordinance or resolution and should have a prospective effect only.
Further guidance on the matter is provided by Auditor of State Bulletin 2003-005, titled “Expenditure of Public Funds/Proper ‘Public Purpose’.” This bulletin asserts that the Auditor of State’s Office will only question expenditures when the legislative determination of a public purpose is clearly arbitrary and incorrect.
During the examination of credit card disbursements and controls in the Chillicothe City Schools, multiple instances were identified in which outstanding account balances were carried past their due dates, leading to late charges. Specifically, the School District incurred late charges of $6,932.54 to U.S. Bank and $33.24 to Vinton County National Bank during the audit period. The audit report underscores the need for the School District to review and optimize its current processes to prevent balances from being carried past due dates, thereby avoiding such late charges. Additionally, it emphasizes the importance of timely payments to avert late fees and interest charges.
These findings from the financial audit cast a spotlight on the Chillicothe City Schools’ financial practices, potentially influencing the political landscape in this election year as voters assess the implications of these late fees on public funds.