Dublin City Schools finance director resigns

Dublin City Schools finance director Chad McDaniel resigned at a called school board Thursday night following revelations from state officials that the system owes $4.8 million in past-due State Health Benefit Plan payments while also withholding but not paying employee contributions to the plan for months.

The City Board of Education closed the meeting for more than two hours. The meeting was reopened, and Superintendent Fred Williams announced the board had accepted McDaniel’s resignation. However, there was no vote during the open meeting to do so.

Williams and board members say they were only recently made aware that benefit payments were not being made. State and school officials first met about the issues on Aug. 15, and state school Superintendent Richard Woods detailed the problems and plans of action in an email sent to local school officials on Monday.

No money is missing, Williams said when asked after Thursday’s meeting.

“The money is not missing. The money just wasn’t getting paid (to the state). We have a repayment plan to the state,” the superintendent said.

According to Woods’ letter, the city schools wired $780,512 to the state Department of Community Health after the Aug. 15 meeting. “We paid them what they asked us to pay them at that time.” Williams said Thursday.

Several board members said they are still seeking answers that could lead to more “consequences.”

“It is not our role to micromanage day-to-day operations, but it is our duty to hold the superintendent accountable for fulfilling those responsibilities,” board member James Lanier said. “Our decisions are made in board meetings based on the information provided to us. When that information is withheld or inaccurate, our decisions suffer. To withhold critical financial information, as we discovered last week, is inexcusable. There must be consequences, up to and including prosecution if necessary.”

Chairman Kenny Walters added, “We don’t handle the day-to-day operations. But as a board member, I was told you have two rights – the right to ask a question and the right to get an answer. And we will ask the questions, and hopefully we’ll get a true answer.”

Woods’ letter detailed “operational deficiencies” in the system’s finances that included the district not paying employer contributions to the state health plan for the entirety of fiscal year 2025. Also, the schools deducted employee contributions from workers’ paychecks but withheld payment for months, since March.

Board member Regina McRae did not attend Thursday’s meeting but said she sat in virtually. She said in a statement to The Courier Herald that she appreciates the “swift action” taken but added “there is still work to do.” 

“I also appreciate the prompt response from the administration in addressing deficiencies and moving swiftly to ensure we are in compliance. However we must ensure that this never happens again. A deeper examination of how this happened reveals that serious changes are needed so that this cycle does not continue. I am in full support  of an outside review of finances. A trusting relationship is a requirement between a board and the administration. I’m saddened that this news takes away from the serious work we have been doing on the board to demand transparency and to help our system thrive.”  

Board member reactions ranged from “angry” to “embarrassed.” Several noted that they welcomed assistance from state officials and other outside sources.

“I want to say I’m sorry. Y’ll deserve better,” Amanda Smith said during board member comments. 

McDaniel moved from the school system’s technology director to its finance department in 2022 before taking over as finance director following Christi Thublin’s retirement in 2024.

Woods’ letter also listed overdue audits from fiscal years 2022, 2023 and 2024 among the “financial concerns” the state has with the system. The letter outlines steps required for the system that includes plans to repay the benefit plan and to eliminate the system’s deficit before fiscal year 2027.

Williams reopened Thursday night’s meeting by saying the board had met the state’s requests to submit a deficit reduction plan, a cashflow statement and a “fiscal improvement plan” that includes: • • Resubmitting a deficit reduction plan to include a balanced budget by FY27, along with a contingency plan for any lost revenues due to property tax appeals, to the state Department of Education by Aug. 29.

• Submitting proof of State Health Benefit Plan approval of repayment plan, along with verification of continued benefits, to state Department of Education by Aug. 29.

• Providing documentation to the Department of Education that all FY23 audit pending documents have been submitted to accountants Mauldin & Jenkins by Sept. 22, 2025.

• Continuing to meet the Department of Education Financial Review team as requested until all concerns are resolved.