Subpoenas issued in Decatur : Financial activities within school district called into question
Posted on Wednesday, July 23, 2008
BENTONVILLE - Prosecutor's subpoenas have been issued in connection with an investigation into financial activities within the Decatur School District.
Decatur Police Chief Terry Luker confirmed Tuesday that he served prosecutor's subpoenas for three people to appear Thursday at the Benton County Prosecuting Attorney's Office.
Decatur School Board president Michael Wilkins, Terri Burden, a bookkeeper; and suspended Superintendent Dave Smith were served the subpoenas. A fourth subpoena was served to Candy Brown, who is employed with American Check Cashers in Bentonville, Luker said.
Luker said he could not comment on why subpoenas were served to the four.
"I can not comment at this time," Luker said. "It's an ongoing investigation."
Benton County Prosecuting Attorney Van Stone also said he could not comment on the investigation.
Stone said his office is working with state auditors to make sure a thorough investigation is completed.
"I'm not going to comment on the investigation," Stone said. "We are going to gather the evidence and facts and go from there."
The district came under investigation by the Arkansas Department of Education - and is undergoing a special audit by the Arkansas Joint Legislative Committee - after Tina Murray resigned from her position as district treasurer the last week of May.
Based on figures from the last fiscal year, the state originally estimated the district would have a $ 600, 000 budget shortfall by the end of this fiscal year, which ends June 30, 2009. That figure was changed to up to $ 850, 000, and the most recent figure is $ 419, 000.
Interim Decatur Superintendent Bobby King is in the process of gathering information to present to the state Board of Education on July 31 when Decatur faces being annexed into one of three nearby districts - Gravette, Gentry or Bentonville.
King said last week that the estimated shortfall in the district's budget is inaccurate for several reasons. For one, the figure includes $ 300, 000 in one-time expenses that were incurred last fiscal year, many associated with the opening of a new elementary school. Those expenses will not be incurred again during the new fiscal year.
There are also a number of open positions within the district that will not be filled, thus saving the district salary and benefit costs. The district is receiving further help from the community.
The district has raised around $ 136, 000 so far, and another $ 100, 000 has been pledged.
The state is also expected to have more information available at the July 31 hearing. Bill Goff, assistant commissioner for finance and administration for the Arkansas Department of Education, said Decatur has a unique situation in that not all of the financial information has been properly recorded. The discrepancies are making it impossible at this time to know an exact bottom line for the district, he told state board members.
Staff writers Jamie Brunk and Janelle Jessen contributed to this story.
FEEDBACK:
Something to say about this topic? Submit a Letter to the Editor online
