TERRE HAUTE, Ind. (WTHI) – The Indiana State Board of Accounts is asking a former Deming Elementary Extra-Curricular Account Treasurer to repay the Vigo County School Corporation more than $20,000 for receipts not deposited.
The Indiana State Board of Accounts recently completed a special investigation report for the Vigo County School Corporation for the period of January 1, 2015 to February 29, 2020.
The report states Erica McCloud became the Extra-Curricular Account Treasurer (ECA) at Deming Elementary on January 29, 2015. According to the report, she failed to turn in the school’s 2019 report. At that time, the district called for a meeting with her, which officials say McCloud did not attend.
McCloud resigned on February 5, 2020. School corporation officials reviewed the school’s receipts and deposits, then reported a theft to the Terre Haute Police Department. The Terre Haute Police Department notified the State Board of Accounts about the alleged theft.
In a statement, Bill Riley, the Communications Director for the Vigo County School Corporation, said, “As the state audit Friday shows, we discovered and reported the discrepancy at Deming Elementary School to the Terre Haute Police Department in February. We find the state's audit and findings to be accurate.”
The special investigation report revealed receipts written for school book fairs, field trips, and student activities were not deposited – totaling $20,334.89. A further review of the detail of items deposited showed checks for commissions, donations, and other unidentified sources that were included in the deposit, but not recorded in the ECA ledger.
The State Board of Accounts is also asking McCloud pay $8,165.25 for special investigation costs.
The report by the State Board of Accounts states internal controls over the reporting of the account in question were in place by the school corporation; however, the report also states there were deficiencies, as follows:
• McCloud presented the December 2019 monthly report to the Principal to review and sign on January 30, 2020. However, after the Principal reviewed and signed the report, McCloud made adjustments to the system and generated a new report that she uploaded to Gateway on January 31, 2020.
• McCloud failed to pay bills in a timely manner.
• Textbook fees collected and posted by McCloud, but were never deposited.
• Receipts were written out of sequence and not in chronological order.
• Receipts were not posted to the ledger.
• Prescribed forms SA-3 Receipt and SA-8 Summary Collection Form were not always in use.
• Records for November 2017 through December 2018 were not retained for review.
According to the report, “Overall, the lack of internal controls at Deming Elementary over the ECA Treasurer position allowed for the items above to go undetected.”
According to Riley, “When we discovered the discrepancy, we looked at all of our other buildings closely and could find no irregularities. Our internal controls were effective in our other 27 schools. To further our internal controls, we will conduct random internal spot checks at each of our schools throughout the year, beyond the twice-yearly internal audits of each building that is already our standard.”
The State Board of Accounts said the report was forwarded to the Office of the Indiana Attorney General and the local prosecuting attorney.