Construction Company Repays School District For Inflated Charges

The construction company building the new consolidated school has repaid the Franklin County School District more than $130,000, following the discovery three weeks ago one of their employees falsified billing documents that in at least one instance inflated charges billed to the district.
In an April 25 memo to the school board from Superintendent Jo Ann Gander, transmitted via School Board Attorney Barbara Sanders, Gander wrote that Peter R. Brown Construction, Inc., had on April 11 repaid the school district $130,583 in overcharges.
"About two weeks ago, Peter R. Brown Construction Inc . (PRBC) determined that it had been victimized by an employee who intentionally falsified billing documents, one of which had the effect of inflating charges that were then billed to the Franklin County School Board on the school construction project," Gander wrote.
The memo said the PRBC employee involved in the matter was terminated, but did not name the individual. Project Manager Casey Kelley, who usually provides the PRBC report to the school board, did not attend the April 10 school construction workshop, and he is no longer present on the construction site.
John Stewart, PRBC's executive vice president, refused to confirm whether or not Kelley was the individual involved in the matter. "Our client (the school district) has asked us to let them speak to this issue and we want to honor their request," said Stewart.
Gander's memo said that PRBC's internal audit confirmed records had been falsified and that the board was overcharged "in one instance." The memo did not specify where or how the overcharge had occurred.
The memo said PRBC reported the incident to the district "and immediately repaid the full overcharge amount."
Gander's memo said the matter has been reported to the State Attorney's office "to determine what, if any, further action may be taken." Assistant State Attorney Robert Hale could not be reached for comment prior to press time.
"Both the Franklin County School District and PRBC, together, are cooperating fully with the State Attorney's office," wrote Gander. "The school district's architect of record, as owner's representative, has retained a forensic auditor for a complete review. PRBC has agreed to reimburse the school district for any extra costs and expenses incurred by the district as a result of this matter."
Gander's memo notes that "the new school is on budget and is being built to very high quality standards.
"Construction on the new Franklin County K-12 School is on schedule and will be open for students in August 2008," she wrote. "PRBC has served at the construction manager, and we are extremely pleased with their performance."