SCOTT COUNTY, Ind. (WDRB) -- A lack of control and overdrawn accounts. Millions of taxpayer dollars to educate kids mismanaged. The state has ordered a southern Indiana school district to clean up its books.
State and federal investigators are keeping a close eye on Scott County School District 2's spending.
Superintendent Dr. Marc Slaton said the district overspent close to $5,000,000. While he wouldn't offer an exact number, he said the district's Chief Financial Officer has announced his retirement and is on leave.
"We are still looking through some of our finances to try and really pinpoint that number," Slaton said.
The school district is facing the headwinds of some questionable financial management. A recent audit conducted by the Indiana State Board of Accounts found "Management had not established a proper system of internal controls."
WDRB News pressed Slaton on what happened to the money.
Richard Essex: "Is there money missing?"
Slaton: "Missing is not the right word."
RE: "Misallocated?"
Slaton: "Overspending"
RE: "How much?"
Slaton: "We are still working on ironing that out."
Tuesday night, the Scott County School Board hired a new Chief Financial Officer to replace Casey Brewster. Brewster had been overseeing the district's finances since he was hired as Chief Financial Officer in the fall of 2022.
A recent audit conducted by the Indiana State Board of Accounts found "Management had not established a proper system of internal controls."
"Casey announced he was retiring in July and is out right now, and so we went and hired a new CFO to get in here and get to work and help us," said Slaton.
WDRB News started looking into the financial turmoil a few weeks ago. When questioning the superintendent prior to a previous executive board meeting, he asked our crew to leave. Then as our crew tried to question board members, a car alarm was set off to disrupt the conversation.
The district is seeking bond money to support the overspending. Currently no programs have been cut or staff laid off, but there is a sense of dread in Scottsburg that the once proud school is suffering.
“But I was told that the football program might be moved around,” said resident Monty Craig.
Brewster was hired at Scott County from Paoli schools, where he voluntarily resigned after accusations of mismanagement.
Scott County School District 2's board is meeting in executive session Thursday, March 14, to discuss an individual's alleged misconduct.
WDRB News learned Wednesday that Indiana State Board of Accounts will conduct another audit into Scott County School District 2, after learning of this report, and hearing Superintendent Slaton admit to the overspending on camera.
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