Here at the OSBA legal division, we've gotten some recent questions about required training on fraud reporting. The training requirement became effective this year and, for school district officials and employees, the deadline for training is Nov. 29, 2024. Let's dig a little deeper!
In an amendment effective earlier this year, Ohio Revised Code (RC) 4113.52 requires certain school district officials and employees to timely report suspected fraud, theft in office, and misuse or misappropriation of public money to the Auditor of State’s (AOS) fraud reporting system established under RC 117.103. AOS Bulletin 2024-05 explains the fraud reporting requirement, including who is subject to it and what conduct is reportable.
There is also a new requirement for training on fraud reporting. RC 117.103(B) requires all public officials and employees, including school district and educational service center (ESC) officials and employees, to take training detailing Ohio’s fraud-reporting system and the means of reporting fraud, waste and abuse.
The training requirement applies to all public employees and elected officials including, but not limited to, those who are subject to the mandatory reporting requirement. According to AOS, an “employee” is any anyone who is "paid with public money by a political subdivision via a W-2." An “elected official” is anyone who is elected to a local office and who has received a certificate of election pursuant to RC 3505.38.
AOS has prepared FAQs on the required training. Several of the FAQs address issues that are relevant to school districts and ESCs, including questions on seasonal workers, part-time staff, substitutes, ticket takers, coaches, student workers and contract staff.
As noted above, the deadline for current school officials and employees to complete the training is Friday, Nov. 29, 2024, unless there is good cause for not completing it. Newly hired employees are required to complete the training within 30 days of employment. The district or ESC is required to keep a record of the fraud training completed by each employee. The law requires that the AOS confirm, when conducting audits, that public employees and elected officials have received the training materials. In its FAQs, AOS states that failure by any employee to complete the training may result in noncompliance being reported during a public agency’s next audit.
More information about the required training, including a link to the training video and tools to assist school districts and ESCs in tracking compliance with the requirement are available at: https://ohioauditor.gov/trainings/fraud.html
School districts with questions about the required training, or fraud reporting requirements, are welcome to contact OSBA’s legal division at (855) 672-2529 or (855) OSBA-LAW.