State Finds $276K Misused by Former TVSC Treasurer
July 28, 2016 at 4:25 p.m.
By Jordan Fouts-
The SBA conducted the emergency audit following the death of Sherri Adamson, who was found in the woods outside her Rochester home Jan. 7, a victim of an apparent self-inflicted gunshot wound. She was being questioned by authorities at the time over the alleged misuse of school corporation funds.
The audit, which covers her period of employment from Jan. 1, 2010, to Jan. 31, 2013, and which was forwarded to the Indiana Attorney General and local prosecuting attorney, found that during that time Adamson had misused public funds in the form of undocumented checks and credit card charges totalling $276,516.29.
The SBA additionally requests from Adamson’s estate $28,149.55 in costs related to its investigation of those undocumented checks and credit card charges.
Investigators examined accounts payable vouchers to see if documentation supported checks Adamson issued between June 29, 2012, and Jan. 3. Of the 34 checks, most with a corporate vendor posted to school records as payee, 29 appeared with Adamson as the actual payee. Investigators concluded that Adamson’s estate is liable for $34,916.63 in undocumented checks.
Investigators also reviewed copies of statements for credit cards issued to the school corporation and controlled by Adamson, noting that the school’s accounts payable vouchers did not contain all credit card statements. They concluded that, based on the types of vendors listed on credit card statements, “a significant number” of the purchases were for Adamson’s personal expenses, totalling $245,625.15.
The SBA also concluded that internal controls over the disbursing, recording and accounting for financial activities related to vendor checks and credit cards were insufficient, and instructed school officials to implement the necessary controls and policies in state guidelines for Indiana public school corporations.
The report was discussed April 18 with Brian Murphy, school board president; Schools Superintendent Brett Boggs; Assistant Superintendent Daniel Kramer; Jessica McFarland, current treasurer; and Jennifer Barden, deputy treasurer.
In the school corporation’s official response, Boggs wrote that TVSC believes the report to accurately reflect the misuse of public funds by Adamson, and that the school took immediate actions to “correct the conditions and prevent a recurrence” as details of the investigation emerged. Internal controls over accounting were reevaluated, and controls related to segregation of duties, safeguarding of cash, other assets and information processing are being put in place, Boggs said in the response.
TVSC “deeply regrets the circumstances leading to the emergency audit” following Adamson’s death,” he wrote. “The individuals who manage and govern the TVSC are deeply disappointed in the actions of the former corporation treasurer.”
Boggs also wrote that “It is important to note that a significant portion of the misuse of public funds occurred during the time of transition from the retirement of the previous deputy treasurer to the hiring of a new deputy treasurer when the former corporation treasurer assumed the responsibilities of both positions.”
TVSC has public official bonds covering the time when the misuse of funds occurred, he noted as well, and the corporation “anticipates the bonds will result in full restitution of the public funds misused by the former corporation treasurer.”[[In-content Ad]]
The SBA conducted the emergency audit following the death of Sherri Adamson, who was found in the woods outside her Rochester home Jan. 7, a victim of an apparent self-inflicted gunshot wound. She was being questioned by authorities at the time over the alleged misuse of school corporation funds.
The audit, which covers her period of employment from Jan. 1, 2010, to Jan. 31, 2013, and which was forwarded to the Indiana Attorney General and local prosecuting attorney, found that during that time Adamson had misused public funds in the form of undocumented checks and credit card charges totalling $276,516.29.
The SBA additionally requests from Adamson’s estate $28,149.55 in costs related to its investigation of those undocumented checks and credit card charges.
Investigators examined accounts payable vouchers to see if documentation supported checks Adamson issued between June 29, 2012, and Jan. 3. Of the 34 checks, most with a corporate vendor posted to school records as payee, 29 appeared with Adamson as the actual payee. Investigators concluded that Adamson’s estate is liable for $34,916.63 in undocumented checks.
Investigators also reviewed copies of statements for credit cards issued to the school corporation and controlled by Adamson, noting that the school’s accounts payable vouchers did not contain all credit card statements. They concluded that, based on the types of vendors listed on credit card statements, “a significant number” of the purchases were for Adamson’s personal expenses, totalling $245,625.15.
The SBA also concluded that internal controls over the disbursing, recording and accounting for financial activities related to vendor checks and credit cards were insufficient, and instructed school officials to implement the necessary controls and policies in state guidelines for Indiana public school corporations.
The report was discussed April 18 with Brian Murphy, school board president; Schools Superintendent Brett Boggs; Assistant Superintendent Daniel Kramer; Jessica McFarland, current treasurer; and Jennifer Barden, deputy treasurer.
In the school corporation’s official response, Boggs wrote that TVSC believes the report to accurately reflect the misuse of public funds by Adamson, and that the school took immediate actions to “correct the conditions and prevent a recurrence” as details of the investigation emerged. Internal controls over accounting were reevaluated, and controls related to segregation of duties, safeguarding of cash, other assets and information processing are being put in place, Boggs said in the response.
TVSC “deeply regrets the circumstances leading to the emergency audit” following Adamson’s death,” he wrote. “The individuals who manage and govern the TVSC are deeply disappointed in the actions of the former corporation treasurer.”
Boggs also wrote that “It is important to note that a significant portion of the misuse of public funds occurred during the time of transition from the retirement of the previous deputy treasurer to the hiring of a new deputy treasurer when the former corporation treasurer assumed the responsibilities of both positions.”
TVSC has public official bonds covering the time when the misuse of funds occurred, he noted as well, and the corporation “anticipates the bonds will result in full restitution of the public funds misused by the former corporation treasurer.”[[In-content Ad]]
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