We understand that community members may have questions regarding the recent audit findings and related actions. As inquiries are received and reviewed with legal counsel, responses will be added to this section on an ongoing basis.
Please check back regularly for updates. Questions can be submitted to Superintendent Jeremy Lonneville at JLonneville@livoniacsd.org.
Why is this information being released now when these conflicts came to light in 2022?
While there are ongoing investigations, the District is not able to discuss them publicly. On April 27, 2025, the District received a copy of the draft audit from the NYS Comptroller. The exit conference was scheduled by the Comptroller for May 20, 2025 and the District was required to submit its formal response to the Comptroller on May 27, 2025. On May 29, 2025, the District held meetings with staff and released this information on Social Media, on its website and through ParentSquare.
To clarify, the NYS Comptroller controlled the timing of the issuing of the draft report and the scheduling of the exit conference. It also controls the timing of the release of the final audit. While the District wishes this process had occurred sooner, it was outside of our control.
I believe other individuals also had conflicts of interest and resigned from the District, why are they not named in this report?
The District provided all information in its possession to the Comptroller’s Office. The Comptroller decided where to focus the report.
As detailed in our releases, the District has put a renewed emphasis on functioning in an ethical, structured and policy-driven approach. Where conflicts were found to exist that were not handled appropriately, the District took appropriate steps
The Former Superintendent asked me to implement software in my classroom and provide detailed reports back to him on the implementation of this software. Were these products provided by vendors of his company? (This question has been asked in several different formats)
We are unable to provide specific details as to which products were associated with vendors of his company. The draft audit did not name any specific companies. While we have some sense of who some of these vendors are, this is primarily based on speculation as we do not have access to the financial records or vendor relationship details from his company.
Has the District taken steps to recoup the $724,869 in missing or probably misappropriated funds?
To be clear, the audit does not indicate that the funds spent at the Physical Therapy provider were missing, misspent or misappropriated. The Physical Therapy company provided services to students as required by their IEPs and was paid for the services provided. Each and every invoice and payment was audited and was found to be correct. Additionally, the District’s Director of Special Education audit’s each invoice and approves it after cross referencing with student IEPs to ensure the services were mandated by each student’s plan.
The audit indicates that GML 18 does not permit a District to contract with a vendor which is owned by a School Board member (there are certain exemptions that do not apply to this situation). As soon as the Board and Board Member were informed of this in 2022, the Board Member resigned.
Why does the District continue to contract with this physical therapy company if there are ongoing investigations?
In 2023, the District issued a Request for Proposals (guided by legal counsel and our external auditor) and the contract was awarded to the same provider as it was determined that the services provided were the best service for the best rate. Additionally, in 2025, the District advertised for and recruited to hire a Physical Therapist directly rather than through a contract agency. No candidate who was qualified accepted the position.
It is also important to note that the rate Livonia CSD is charged by this vendor ($95/hour in 2025-2026) is less than 50% of the price charged by Genesee Valley BOCES for this same service ($214/hour) which would be our only other alternative. Both service providers are eligible for High Cost Aid for Special Education students at the same reimbursement rate from NYS.
Did the District recoup any of the leave time and/or reimbursements paid to the Former Superintendent?
Yes, prior to the Former Superintendent’s resignation, the District was able to recoup 54 vacation days and $3,793.66 in reimbursements that had been previously paid to the Former Superintendent.
How did the Board become aware of the former superintendent’s conflict of interest?
The Board of Education received an anonymous complaint in April 2022 regarding the former superintendent’s ownership interest in a private business. In accordance with Board Policy 5571 – Allegations of Fraud, the Board immediately initiated an internal investigation to review the concerns and determine the appropriate course of action.
What is the name of the company in which the former superintendent is a shareholder? And how much did the District spend at the company?
The company is called the Institute for Education Innovation (IEI). As set forth in the draft audit report, the District made a single payment of $950 in 2018 for an administrative membership fee related to a conference hosted by IEI. No other payments were made directly to the company. However, as previously disclosed, the District did make payments to vendors affiliated with or connected to IEI, which are outlined in more detail in the audit report and the District’s response.
Does the current superintendent own any companies or engage in paid consulting work?
No.
Given how often the former superintendent was away from the district, why wasn’t this questioned sooner? What has the Board done to improve oversight? Were any changes made to the current Superintendent’s employment to prevent similar issues in the future?
Attendance at professional conferences or statewide educational events is not inherently inappropriate and, in many cases, is encouraged as part of a superintendent’s role. However, in retrospect, the frequency and extent of the former superintendent’s time away from the district understandably raise concerns.
Since that time, the Board and district leadership have taken several proactive steps to strengthen oversight and accountability:
- The current Superintendent’s contract does not permit paid consulting work during his term of employment.
- The Superintendent now emails a monthly calendar to both the Board President and Vice President in advance, outlining scheduled commitments.
- The Superintendent submits timesheets that are reviewed and approved by the Board President to ensure transparency in time reporting.
- Any expense reimbursement requests made by the Superintendent are reviewed and approved by the Board President before processing.
These changes are part of the District’s broader effort to ensure greater transparency, reinforce accountability, and maintain public trust.
What does “unused or underutilized services” mean? Was the District able to recoup any funds from the vendors or the former superintendent?
“Unused or underutilized services” refers to instances where the District paid for access to services, subscriptions, or memberships but either did not use them at all or used them significantly less than anticipated.
In most cases, vendors do not offer refunds for underutilized services because their contractual obligation is met by simply making the service or product available. Usage levels—while important from a value standpoint—do not typically impact payment terms once a contract is executed.
As a result, the District does not have a practical or legal pathway to recover funds from those vendors or from the former superintendent. However, the District has since tightened internal approval processes and expectations for service oversight to ensure better alignment between expenditures and actual use moving forward.
Were any disciplinary actions taken against the Former Superintendent before he resigned? Why did he resign?
There were no disciplinary actions taken. The Former Superintendent resigned while the independent investigator was conducting the investigation into the claims that a conflict of interest existed.
If the former superintendent resigned in June 2022, why did he still have earnings in the 2022–2023 school year?
The Board accepted the resignation of the Former Superintendent on June 16, 2022. The Former Superintendent’s resignation date was July 16, 2022 which pushed his employment into the 2022-2023 school year.
Is the former superintendent currently employed in education elsewhere?
The District cannot answer this question as we do not track the employment status of former employees.
Given the clear conflict involving the former board member, why did the Board believe recusals were sufficient? Doesn’t legal counsel review all contracts?
At that time, the Board had an incorrect understanding that the member’s recusal was sufficient to allow the Board to move forward with the contract and acted on that understanding. Once it became clear that this approach was not adequate, the Board took immediate and appropriate steps to remediate the issue.
Since then, the District has changed its process to reflect best practices used by other school districts, including ensuring that contracts receive legal review when appropriate as well as having all potential conflicts analyzed under the General Municipal Law. This has helped strengthen internal oversight and improve the District’s governance processes.
Is it typical for a school district to spend this amount on physical therapy services over a similar time period?
Yes, this level of spending is typical for a district like Livonia, although costs can vary depending on student needs and a school district’s service model.
A district of Livonia’s size would typically require two or more full-time physical therapists if staffing the positions directly. Our costs are also influenced by the fact that Livonia is committed to educating the vast majority of our students in-district—rather than placing them in out-of-district programs, which often provide their own PT services. This increases the demand for on-site physical therapy.
From a cost perspective, hiring a physical therapist directly involves far more than base salary. While a therapist might earn approximately $70,000 annually, additional expenses include health and dental insurance, payroll taxes, and State retirement system contributions. When all benefit and legacy costs are considered, the total cost to employ one therapist can approach or exceed $120,000 annually.
While $20,000 per month may appear high at first glance, it aligns with the realistic cost of delivering high-quality PT services in a district that prioritizes in-District student support.
Given the monthly cost of the physical therapy contract and the estimated cost to hire a PT directly, why hasn’t the district simply hired a full-time PT?
Unfortunately, this is a difficult position to fill, as the pool of certified candidates is small and competitive. In the spring of 2025, the District engaged in a comprehensive process in an effort to hire a full-time Physical Therapist. We posted the position, advertised through multiple channels, and conducted interviews. The qualified candidate who we identified ultimately declined the offer of employment.
Many surrounding districts have also struggled to fill similar vacancies and contract with outside providers to provide the service.
It’s also important to note that based on our student needs, we would likely require two or more Physical Therapists to fully meet demand. Continuing to work with a contract agency gives the District important flexibility—we are able to scale services up or down based on actual needs.
In short, while hiring directly remains our preference when feasible, contracted services allow us to ensure continuity of care for students in a cost-effective and responsive manner.
Will the District be fined or lose any state aid because of these issues?
Based on our current understanding, we do not anticipate any fines or reductions in state aid resulting from the issues identified in the audit. The New York State Comptroller's audits are primarily designed to assess compliance and recommend improvements, rather than to impose financial penalties. While certain findings can lead to adjustments in state aid calculations—particularly if they involve misreporting or non-compliance with aid-related requirements—such outcomes are typically associated with unaddressed issues.
In our case, the district has proactively addressed the audit findings and is implementing corrective measures to ensure compliance and transparency. We remain committed to maintaining open communication with the community and will provide updates if any changes occur.
When will the final audit report be released?
The timing of the release is controlled by the NYS Comptroller. They typically release a batch of reports each Friday.
Is the District’s current financial position secure?
Yes. While we still face annual budgetary challenges due to structural issues within the NYS Foundation Aid formula, the purchase of unused or underutilized services from 2017-2022 does not have an impact on the District’s financial position.
How are conflicts of interest tracked and disclosed today?
Each District employee and Board of Education member completes a conflict of interest disclosure form each year. Any potential conflicts are analyzed with legal counsel and handled appropriately depending on the nature of the conflict.
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