State audit: Mt. Adams schools missing funds

WHITE SWAN -- A state audit found more than $3,800 in public funds have been mishandled in the Mt. Adams School District over a five-year period.

The discovery comes after the district's business manager, Mike Wells, noticed a significant drop in revenue from gate sales at athletic events, from $25,244 in 2005 to $10,590 in 2007. After looking into the discrepancy, Wells contacted the state auditor's office in May 2007 about the possible misappropriation.

Wells believes there was a drop in attendance because of the difference in the success of the basketball and football teams from one year to the next. But the drop in attendance didn't answer all of the concerns.

"It just seemed to me like it was too much," Wells said. "That's why I dealt with it the way I did."

The district also discovered that $2,900 in funds were mishandled from the Harrah Elementary School vault.

During a review of high school receipt books between August 2002 and September 2007, a state audit team discovered funds had been received but not deposited. That resulted in the discovery of an additional $903.

Although both district officials and staff members from the state auditor's office tried to determine if there was a loss, they were unable to figure the full extent of the loss or assign responsibility to a specific individual for the misappropriation.

"It's only a possibility," said Rick Foss, superintendent of the 930-student school district.

Foss said there just wasn't the documentation to support some of the financial transactions.

Since then, Wells said he has written several policies to strengthen oversight of such financial practices. He said they have also rekeyed several vaults to limit access. Wells also plans to emphasize the new policies with training at the beginning of the school year.

"We came up with some internal control weaknesses, so we got right on top of it," Wells said.

State auditors may check back in on the problem areas during the next audit, which could happen in the next two years.

"It could be sooner if we think there is a reason to go back before then," said Mindy Chambers, director of communications for the state auditor's office.

* James Joyce III can be reached at 577-7675 or jjoyce@yakimaherald.com.

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