Editorial: Audit finding warrants DA investigation

Wednesday, Dec. 3, 2003 | 9 a.m.

Audits conducted by the Clark County School District have revealed serious misappropriation of funds at five schools. The funds were generated from yearbook sales, prom tickets, car washes, candy sales and other student activities. They were supposed to have been collected and deposited in a dedicated, interest-bearing bank account and properly supervised by the school banker and the school principal. These types of funds are standard at schools across the country. They are collected for one purpose -- to support students engaged in the numerous educational and recreational activities offered at school.

At five schools, however, the audits reported that the funds were being used for other purposes and that some of the money had been outright stolen. The misuse of the funds by school officials was discovered during audits of all 289 district schools over the past three years. The findings at individual schools came to light after a district audit in September revealed accounting improprieties in the funds associated with the annual Holiday Prep Classic basketball tournament. That audit reported that about $100,000 could not be accounted for.

Altogether, the amount of money missing from the five schools or mishandled by them amounted to $100,128, as reported by the audits. The total includes $52,376 at Western High School, $24,987 at K.O. Knudson Middle School, $11,675 at Moapa Valley High School, $9,490 at Las Vegas High School and $1,600 at Harney Middle School. School audits are not criminal investigations and therefore have their own language to describe missing money. Some of it was "diverted," and some was "loaned" and some was used for "inappropriate reimbursement." At Las Vegas High School, though, the audit did say "a theft has occurred."

In the case of the missing Holiday Prep Classic money, the district has released its audit findings to the Nevada Division of Criminal Investigations and the Clark County District Attorney's office. An investigation is under way to determine whether criminal charges should be brought. The school district should do the same with these five audits. So far, the individuals responsible for the missing and mishandled money have faced only internal discipline. If school officials indeed stole from their students, they should face the appropriate criminal penalty.