Elizabeth schools, federal officials announce deal to settle improper use of funds claims

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NEWARK, New Jersey — Federal prosecutors have reached a deal with the Elizabeth school district to settle allegations that it improperly used federal and state funds to provide meals and catering services for school board meetings and other special functions.

The agreement made public Monday calls for the district to credit $272,810 to its school lunch program and pay $49,500 to the U.S. Department of Justice.

The district participates in the national school lunch program, which reimburses districts to ensure low-cost or free meals for qualifying students.

Prosecutors say that between July 2008 and June 2014, the district didn't collect, reimburse or apply $182,243 to its lunch program for catering services provided to its board and $90,567 for catering services provided to various schools, principals, and administrators within the district for other special functions.

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