Jobs lost after school audits

Tuesday, Dec. 2, 2003 | 8:34 a.m.

Clark County School District officials say they are taking steps to recover more than $100,000 missing from student activities funds at five area schools.

While the adults accused of misappropriating the students' funds have not been prosecuted, Schools Superintendent Carlos Garcia said Monday they have either chosen to retire, been fired or were otherwise disciplined.

The missing money was discovered via internal audits during the last three years. Garcia said he hopes the audit findings will send a clear message to others not to take the students' money.

"In reality, these incidents are very rare," Garcia said, noting it takes three years to complete the audit cycle for all 289 area schools.

"With five (problematic) audits out of more than 280, we're doing better than a lot of major corporations. But in these instances, one is too many because it's the kids' money and taking it is unethical. We won't stand for it."

To date, at least $26,587 of the $100,127 missing from athletic and other special-event student funds has been paid back, school officials said.

Garcia said in addition to regularly scheduled audits, schools also are audited when there is a report of potential bookkeeping shenanigans or when new principals take over so they are not blamed for mistakes of their predecessors.

The importance of regular school district audits came to light in September when an audit sparked an investigation of Larry McKay, the district's former athletic director, on allegations he mishandling funds intended for the Holiday Prep Classic basketball tournament that he directed for several years.

The internal audit of the winter tournament that draws national prep powers turned up several improprieties, including shoddy bookkeeping, that suggest that McKay, who retired in June, improperly used district funds to reimburse himself for expenses on a personal credit card.

McKay, a longtime local teacher, former assistant principal and athletic official, has said that while "the bookkeeping wasn't up to standards," he did nothing illegal.

"There was never any money funneled into private accounts," McKay has told the Sun.

That audit's findings along with evidence gathered by school police were turned over to the Nevada Division of Criminal Investigations and the Clark County district attorney's office.

Garcia said Monday he expects that investigation to take another three to four months before a decision is made about pursuing legal action.

The other audits show that some school officials who were in charge of the students' funds or otherwise had access to them either were incompetent or knowingly mishandled the money.

Garcia said that while audits of student activities money at other schools turned up minor procedural problems and "honest human errors," no other audits showed significant mishandling of funds.

School District General Counsel Bill Hoffman said everyone responsible for the missing money had been disciplined in some fashion, with punishments ranging from reprimands to firings.

Hoffman said retirement from the district did not keep the district from forcing restitution. The district takes alleged offenders to civil court to seek a judgment and, if necessary, garnishees retirement checks, Hoffman said.

As for criminal prosecution, Hoffman, a former prosecutor, said that's not so easy to obtain because even if school police build what the district believes is a dynamite case against an employee, the district attorney's office can opt not to take it before a judge and jury.

Hoffman said that while the district needs just a preponderance of the evidence to fire an employee for theft, a prosecutor must prove his case beyond a reasonable doubt -- a much higher standard -- to gain a criminal conviction.

Garcia agreed: "We have no subpoena power here. All we can do is build our best case and recommend prosecution."

They said the priorities are to take action to prevent future thefts and to recover lost funds -- both of which the district has control over. If possible, they said a third priority would be to gain convictions that would further hammer home the message not to abscond with students' money.

Garcia said, in more than one situation, a gambling problem was associated with the missing funds.

"In no instance is the taking of money worth someone's job," Garcia said. "But sadly, some people have a gambling problem and there are heavy consequences for it. The audits follow a good paper trail and people have to pay restitution because we do not let them slide.

"If any of our employees have a gambling problem, they can take advantage of their health benefits package to get the counseling they need. If they are even thinking about taking money from student activities funds, they need to seek that help."