Dist. 158 closes forensic audit

After about a year and half, the Huntley Unit District 158 school board officially closed the books on its forensic audit Thursday night.

The board approved a comprehensive resolution detailing various financial investigations the board has initiated during the past year and a half and the outcome of those inquiries.

The centerpiece of the investigations was the district's forensic audit, which was launched to investigate whether fraud had been committed in the district's payroll office or site and construction fund.

Jefferson Wells, the district's forensic auditor, concluded there was no evidence of fraud.

The board voted to close the forensic audit Thursday over the persistent objections of board member Larry Snow.

"The conclusion is simple: There was plenty of bad management … but there was no evidence of fraud," board President Shawn Green said.

Snow introduced eight separate motions that would have amended the resolution to note what he perceived as the inadequacies of the district's investigations.

"It is questionable whether a complete and thorough fraud investigation took place," Snow said.

All eight of Snow's motions were defeated, with board member Aileen Seedorf voting with Snow in favor of all of his proposed amendments.

The board's resolution and an overview of the district's investigations released this week contained little new information.

The documents released did reveal, however, the value of unauthorized vacation days paid out to four former administrators: $19,619.75.

Former Superintendent Steve Swanson in 2004 gave year-round administrators 10 additional vacation days that were not approved by the school board, board members have said.

The board decided Thursday not to seek reimbursement from the four former employees who were paid for their unused vacation days when they left the district.

Instead, the district will attempt to recover the $19,619.75 from Swanson, now the superintendent of Streator Township High School District 40, board Vice President Tony Quagliano said.

The unauthorized vacation days were the subject of two complaints District 158 and Snow filed with the McHenry County state's attorney last year.

The state's attorney's office found merit in the complaints and forwarded them to the Huntley Police Department.

Green has said the district intends to pursue the matter with Huntley police.

The vacation days are also central to a separate complaint the district has filed with the United States Postal Service.

According to the postal service complaint, District 158 misled voters when it stated in a November 2004 newsletter that administrators did not receive increases or bonuses during the 2004-05 school year.

The documents released this week also show the district overpaid three former employees $6,230.95 and underpaid a current employee $1,155.38 because of clerical errors, Quagliano said.

The district will attempt to recover the overpayments and compensate the employee who was underpaid.

The overview also shows the district overpaid a former administrator $5,998.84 in early retirement benefits and states the district's intent to recover the money.

Money: District 158 will try to recover lost funds