Determine whether the Frewsburg Central School District’s (District) extra-classroom activity (ECA) and scholarship funds were properly accounted for and appropriately used.
ECA and scholarship funds were not properly accounted for and appropriately used. A lack of adequate oversight, segregation of duties and lack of written policies and procedures for scholarship funds allowed the former Central Treasurer (Treasurer) to use funds donated for scholarships and funds collected from other revenue sources to conceal misappropriated and missing money.
- $6,982 is missing or was improperly withdrawn from the ECA and scholarship funds.
- Collections were not deposited in a timely manner or properly supported.
- ECA and scholarship fund accounting records were not properly maintained. The former Treasurer discarded the original student ledgers and replaced them with versions she created.
- Disbursements were not properly approved and supported.
- Periodic and accurate ECA and scholarship reports were not completed.
The former Treasurer was arrested by the Chautauqua County District Attorney and pled guilty to stealing $6,982 from the District on January 6, 2022. She was sentenced to pay full restitution to the District.
- Ensure all money is deposited intact and in a timely manner.
- Complete proper monthly bank reconciliations for all ECA and scholarship accounts and properly report their activity to the Board monthly.
District officials agreed with our findings and recommendations and indicated they have initiated or planned to take corrective action.