Hanover Area To Recover $250K From Overpayment

May 8, 2019

HANOVER TWP. — The Hanover Area School District will recover $250,000 from a transportation overpayment with an insurance claim, district Solicitor William Finnegan said after Tuesday’s school board meeting.

The insurance company will then try to recover that payment with a lawsuit against the transportation company, said Finnegan, one of the district’s two solicitors. The district will pay a deductible of $1,000, school board President John Mahle said.

The district overpaid Frank and Dorothy Ciavarella for a van service, and the school board terminated the van service in February. Their son, Frank Ciavarella Jr., decided to temporarily step down as school board president, but remains on the board.

The state Auditor General’s Office is investigating the overpayment and is expected to issue a report on its findings. Dorothy and Frank Ciavarella should have received around $136,000 for the 2017-18 school year and received roughly $386,000 instead because an employee input inaccurate mileage amounts, district Solicitor Jack Dean said in February.

Ciavarella Jr. has recused himself from votes and closed meeting discussions that involve the overpayment to his parents.

On Feb. 15, the board appointed Terry Schnee as acting superintendent because William Jones was placed on a paid leave of absence. Jones and his attorney Charles Coslett said he unfairly being punished for failing to supervise the employee responsible for the overpayment.

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570-821-2073, @cvmikebuffer