One of the factors that led township school officials to believe they were facing a multimillion dollar deficit last month was this: Administrators never asked for a substantial state reimbursement that the district was entitled to receive.

Shortly after errors became known through an investigation by district auditors, the Lakewood Board of Education ordered administrators to seek the approximately $500,000 that was still outstanding.

The funds now have been received, school officials said Monday.

“The board took swift and decisive action allowing the state to quickly resolve this outstanding shortfall,” said Michael Inzelbuch, the school board attorney.

Between November 2005 and June 2006, administrators failed to request $1.7 million in state reimbursements that the district was entitled to receive. The oversight accounted for most of the district’s $2.1 million cash shortfall, the auditors contend.

The auditors also uncovered other improper actions by the district’s business administrator’s office.

For instance, $1.2 million in budget amendments were enacted by the business office without board approval, the auditors reported. The business office also overspent accounts for district special-education and transportation programs, the auditors reported.

“I’ve been advised by the administration that those accounts were allowed to fall into deficit, or made to appear as if they were in deficit, without the board knowing,” Inzelbuch said.

Over-expended accounts included $142,139 for services for district special-education students and $355,318 for transportation.

Superintendent Edward Luick said auditors still are trying to get to the bottom of what went wrong.

“The idea here is to make sure everything is put in place to make sure the office acts efficiently,” he said.

The school board declared last month that it has a “lack of confidence” in school district administrators and ordered an administrative shake-up.

The board also ordered Inzelbuch to take potential legal action against former interim Business Administrator Edward Kent, who resigned Sept. 20. The board is examining whether to seek reimbursement of money paid to Kent and any funds lost.

Luick said the hunt is under way for Kent’s replacement.

APP