From Deseret News archives:

Speaker requesting audit of all Utah school districts

Scandal in Davis spurs call for a closer look at schools' finances

Published: Friday, Jan. 19, 2007 10:26 a.m. MST
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The speaker of the Utah House on Thursday said he has requested an audit of school district accounting procedures in light of the federal indictment alleging two former employees defrauded Davis School District of $4.3 million.

Speaker Greg Curtis, R-Sandy, last month asked the legislative auditor general to look at accounting procedures and how school districts otherwise handle finances. The goal is to see if districts are following their own procedures and whether oversight improvements are needed.

Curtis' comments come the day after Weber School District and law enforcement officials publicly announced they were probing the alleged embezzlement of $900,000 of Weber School District Foundation funds. A foundation secretary, who was fired last month, is the focus of the probe, the officials said.

The Weber County Sheriff's Office continues to investigate. Capt. Klint Anderson Thursday said they were "looking at about another week or two" before sending the case over to prosecutors to screen for possible criminal charges.

But the Weber situation had nothing to do with his request, Curtis said.

"The Weber School District Foundation is not part of Weber School District," said House Majority Assistant Whip Brad Dee, R-Wash- ington Terrace. "There is a difference with what we're looking at" in the audit.

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Weber School District says that it closely watches its own financial dealings and checks financial activity daily.

Alleged misdeeds in the Davis School District spurred the audit request.

Former Davis District employees Susan and John Ross were indicted last month on 47 counts of mail fraud, money laundering, theft of government funds and copyright infringement. They were accused of defrauding the district of $4.3 million in federal Title I funds, which benefit children in low-income schools, between 2000 and 2005. They have pleaded not guilty to the charges.

Davis District leaders say they have instituted safeguards to alert them to questionable activity, including more closely examining vendor orders.

The audit is expected to include Davis School District, along with about a half dozen others, and be completed after the Legislature adjourns Feb. 28.

The Utah Board of Education also is examining its financial procedures to ensure they are sufficient.

In a board meeting earlier this month, Murray District business administrator Tim Leffel said if two people conspire to commit fraud, almost any safeguards could be circumvented.


Contributing: Ben Winslow


E-mail: jtcook@desnews.com

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