GIRARD — An audit of Girard City Schools for the period ending June 2024 validates findings from a fiscal year 2023 audit, as well as a comprehensive investigation by the school district, that former treasurer Mark Bello was paid more than $800,000 over a two-year period while working under a retire-rehire agreement.

The 2024 certified audit was released recently and identified excessive compensation to Bello.

The fiscal year 2023 audit revealed that Bello received compensation of $461,187 during fiscal year 2023, which spanned July 1, 2022, to June 30, 2023.

The district’s investigation and fiscal year 2024 audit revealed that Bello received compensation of $443,568 during fiscal year 2024, which spanned July 1, 2023, to June 30, 2024.

A statement released by Board of Education President Vincent Ragozine and other members of the school board stated, “These amounts were determined to be excessive due to a revision in the contract stipend calculation clause. Mr. Bello failed to explain the financial effect of a proposed employment contract for the district and violated his fiduciary responsibilities.”

Bello resigned in June 2024 after a state audit revealed he made $270,000 more in fiscal year 2023 than he did the previous year. The board accepted Bello’s resignation in June 2024 and said Bello did not receive any compensation from the district beyond his final paycheck in June 2024.

The school board response to the audit states, “The district remains committed to transparency and integrity, with strengthened processes to ensure responsible financial oversight and to rebuild trust with our community. Since being made aware of these findings in May 2024, the Board of Education has taken significant measures to ensure these issues will not happen again. These intentional and strategic steps include establishing policies and procedures to enhance transparency, accountability, and thorough review of contracts.”

Key measures set up by the board include:

* A written summary of the purpose, effect and estimated yearly costs of proposed contracts must accompany all submissions to the board of education.

* Redline versions highlighting changes from previous contracts, or side-by-side comparisons with existing agreements, will now be provided.

* Proposed contracts, summaries and supporting documents will be shared with board members at least a week before being considered for approval.

* Per guidance from the auditor’s office and Ohio Revised Code, board meetings will take place 15 to 30 days before approving reemployment of retirees.

* The board has engaged and continues to engage legal counsel to evaluate contracts with significant operational or financial implications.

Ragozine said the district’s new treasurer, Maureen Lloyd, was hired in August 2024, using the best practices and safeguards that are now in place. He said Lloyd is an experienced treasurer / CFO and has worked in public schools since 2017.

The statement from the board reads: “Girard City Schools understands the seriousness of this situation and is fully committed to ensuring our district operates with the utmost transparency and integrity. The former treasurer’s contract and failure to meet his fiduciary responsibilities are not consistent with the board’s commitment to responsible fiscal management. The changes the district has implemented reflect the dedication to improving processes, learning from past experiences, and safeguarding against future challenges.

“By prioritizing accountability and maintaining the highest standards, Girard City Schools is focused on building a stronger foundation for the future,” the statement concludes.

The recent audit states that Bello’s total pay was “excessive” and that the district did not have rules or policies in place regarding the retire / rehire process. Bello retired and was rehired by the Board of Education at the June 23, 2022, board meeting. The effective date of Bello’s new contract was Sept. 5, 2022, with an ending date of June 30, 2024.

The audit states in the treasurer’s new contract, the stipend was changed from 2.5% of all federal, state and local grants / CCIP / awards / private revenue of the district, to 1% of all federal, state and local revenue of the district at the treasurer’s discretion.

During fiscal year 2024, the treasurer’s base pay was $110,000, but Bello was paid a total of $443,568. The additional pay consisted mainly of $312,165 from the 1% stipend, $5,750 from a monthly car allowance, and a $11,146 leave balance payout.

In comparison, Bello’s pay from the contract prior to his retirement was $188,683 during fiscal year 2022.

The audit states that the notices required by the Ohio Revised Code regarding retire / rehire contracts were not provided to the public and the district did not have any rules or policies regarding the retire / rehire process.

The audit recommended the board of education “exercise better diligence in reviewing and approving employee contracts.”

Last year, the board released a statement indicating it was not aware of the language change in Bello’s contract from “all Federal, State, and local grants / CCIP / awards / private revenue of the district” to “all revenue of the district,” which resulted in excessive compensation to Bello.

The board stated that Bello made the changes to the stipend provision in the 2022 revised contract.

Ohio Auditor Keith Faber classified the payments as “noncompliance, waste and abuse.”

“While not illegal under the law, this was an abuse of public resources that should not have been allowed.,” Faber stated.