Audit Finds Dyer County Schools Gave Unauthorized Bonuses to Administrators

by Jon Styf

 

An audit from the Tennessee Comptroller’s Office found that Dyer County Schools gave more than $60,000 in ineligible bonuses to administrators out of federal COVID-19 grant funds.

The school district had received a $1,021,467 Epidemiology and Laboratory Capacity for Infectious Diseases Grant that was part of federal American Rescue Plan Act funds that passed through the Tennessee Department of Education.

The school district, meanwhile, contends that the bonuses were approved by the state Department of Education during the grant process.

The intended purpose of the COVID-19 relief grant funds was to pay for items such as nurses, laboratory work, test supplies, mass testing and other purposes. The funds could pay salaries, mileage or contracts with labs or private institutions.

But, instead of using the funds to reimburse the district for a portion of salaries spent on COVID-19 prevention work, the district used it to give bonuses, the highest of which was a $27,688 bonus to Director of Schools Cheryl Mathis.

The district’s Business and Finance Director Wendy Smith received $11,886 and the district’s Special Education Director received $8,037.

Yes, Every Kid

“These bonuses do not appear to be reasonable and necessary for the performance of the award, are not consistent with other grants and programs of the school system and were not properly documented,” the report said.

The school district, however, said that the bonuses were included in the grant application and approved in the process as payments for starting a COVID testing program at the schools.

It claims the payments were in its grant application and were approved. The comptroller’s office stated, however, that work done to prove the bonuses were necessary was not documented and the job titles of employees set to receive bonuses in the application did not match the employees who ultimately received the bonuses.

The audit also found that the bonus payments were not authorized by the district’s school board.

The board did approve a budget amendment seven months after the bonus payments. That amendment allowed $141,519 in bonus payments, including $62,295 for nurses and transportation and maintenance staff. Auditors, however, said that a full breakdown of those bonuses were not given.

“It should be noted the current board of education chairman advised auditors that he was unaware the director of schools received a $27,688 bonus in excess of her contract,” the report said. “As a result, the director of schools authorized a bonus payment to herself without the full board’s voted approval.”

The district stated in its response that former board chairman Keith Anderson, however, had a phone conversation with Smith regarding the application and knew about the bonus payments for “extra duties.”

Both the board and the district stated in responses that each would ensure bonuses were detailed and approved by the board before payments would be made in the future.

The auditor also noted that Mathis’ contract does not call for bonus payments.

“The contract makes no mention of bonuses, and it appears anything beyond normal business hours is already included in her contract amount,” the audit said. “Therefore, it is questionable if the director’s contract allows for the payment of a bonus.”

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Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Styf is a reporter for The Center Square. 
Photo “Dyer High School” by Dyer County Schools. 

 

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2 Thoughts to “Audit Finds Dyer County Schools Gave Unauthorized Bonuses to Administrators”

  1. Karen Bracken

    In my opinioon this is just another scam that will be ultimately swept under the rug.

  2. Randy

    The public need look no farther than this when looking for a reason to vote. Our public education system is broken. It cannot and will not be fixed if the people responsible for doing so do not have a clue about what their jobs actually are. The Grant Funding System used by the Federal Deep State to control State and local governing bodies is full of incentives for fraud and finger pointing.

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