Columbus City Schools recommends firing HR executive after audit finds $40 million insurance overrun

Columbus City Schools has recommended terminating a human resources executive after an external forensic audit found the district spent approximately $40 million more than expected on employee health insurance during 2025 and 2026, while concluding the district’s benefits consultant failed to provide transparent and competent services.

According to The Columbus Dispatch, the audit found insurance consulting firm Aon “generally treated the district as a taxpayer-funded cash cow” while providing overly optimistic financial projections that contributed to significant cost overruns in the district’s self-insurance program.

The district has also ended its contract with Aon and is seeking a new health benefits consultant.

The audit concluded Executive Director of Human Resources Operations Courtney Hale violated two district board policies by improperly signing contracts and failing to maintain public records. However, investigators said there was insufficient evidence to conclude the violations were motivated by personal financial gain or other self-interest.

The district has recommended Hale’s termination, though she remains in the disciplinary process and is expected to receive an additional hearing in August.

Hale told The Dispatch she acknowledged improperly signing contracts but said she immediately notified her supervisor after discovering the mistake. She argued the investigation was an attempt to justify her dismissal after she previously raised concerns about a pay increase awarded to former Chief of Staff Mike De Fabbo.

“I don’t make decisions outside of (the joint insurance) committee – so how am I now the face of a $40 million loss?” Hale told the newspaper.

According to the forensic audit, Aon failed to perform required services under its contract, lacked appropriate technical expertise, was not transparent about its compensation structure and provided financial projections Hale did not appear to question despite growing concerns from other district employees.

The audit also found Hale relied heavily on Aon’s recommendations throughout the 2024 benefits planning process, though investigators noted such reliance on outside consultants is common for large self-insured employers.

Auditors rejected an Aon employee’s claim that the company lost money serving the district, calling the assertion “preposterous” and reporting some commissions reached as high as 80%, well above typical industry levels.

In a statement provided to The Dispatch, Aon defended its work, saying it served Columbus City Schools for 18 years and that its recommendations were reviewed through the district’s established governance process before being approved.

“Any resulting decisions were approved by the appropriate CCS bodies,” the company said. “Aon remains confident in the professionalism and transparency of the services provided to the district.”

Columbus City Schools declined to comment on Hale’s employment status because the disciplinary process remains ongoing but confirmed it has terminated Aon’s contract and is searching for a replacement consultant.

Columbus Education Association President John Coneglio, who serves on the district’s Joint Insurance Committee, said the district should consider pursuing legal action against Aon to recover taxpayer dollars lost through the benefits program.

“There needs be oversight and making sure they do what they say they’re going to do,” Coneglio told The Dispatch. “And since Aon was not accountable and did not fulfill its obligations, surely I’d love to see the district to pursue legal action against them and recoup some of the money they lost.”

The audit comes as Columbus City Schools continues facing significant financial challenges.

Earlier this year, the district approved layoffs affecting nearly 300 teachers and staff while attempting to address a $50 million budget shortfall. At the same time, district officials approved approximately $60 million in facility improvements and athletic facility upgrades despite warning of worsening long-term finances.

Ohio.News also previously reported the Ohio Department of Education and Workforce opened an investigation into testing irregularities at two Columbus high schools after the district invalidated multiple state assessment results. Meanwhile, lawmakers continue considering legislation that would require Columbus City Schools to close or sell underused school buildings as officials work to reduce operating costs.