A recent audit by the State Comptroller’s Office revealed that officials in the Newark School District did not consistently calculate separation payments accurately and failed to ensure an independent review of these calculations. As a result, errors went undetected, leading to both incorrect and missed payments.
Out of 41 employees reviewed, 14 had separation payments totaling $66,036 that were miscalculated, resulting in errors amounting to $20,157. The audit found that four employees were not paid separation payments totaling $16,230, seven employees were overpaid by a combined total of $3,770, and three employees were underpaid by a total of $157.
The state has recommended that the district establish written policies and procedures for issuing separation payments, including implementing a formal process for calculation and review. Additionally, the district should ensure that separation payments are calculated accurately and that sufficient documentation is maintained to support the calculations and verify eligibility.
