Thousands of dollars collected from Atlanta students for class dues, sports fees, field trips and fundraisers have gone missing from schools across the city. Financial oversight of Atlanta schools is so lax, the district can’t say whether the money was stolen or just lost.
Internal auditors found that Atlanta schools’ handling of school activity funds, in some cases, make it all too easy for mistakes or theft to occur or money to be lost.
At a middle school, hundreds of dollars collected for class dues and other fees are missing, and dozens of checks were written without proper documentation.
At one high school, more than $15,000 was paid to a football coach’s volunteer personal assistant for catering team meals a parent said were not all served.
At another, neither the principal nor school secretary could get into a locked school safe after its combination was lost amid staff turnover. Its contents were unknown.
Year after year, internal audits have found similar problems. But Atlanta has referred just two cases to law enforcement in the past five years. And parents who have questioned how school staff handled school funds say they and their children have faced retaliation.
“They’re making me out to be a villain because I raised questions” about football team spending, said Shanrika McClain, whose sons attend Mays High School.
Atlanta Public Schools finance chief Robert Morales said that in most cases, schools are spending their money appropriately.
The $5 million deposited in school accounts last year is less than 1 percent of the district’s total budget. And the money that internal auditors know went missing from those accounts last year is a still smaller fraction, ranging from a few hundred at one school to more than $7,500 at another.
Morales said school activity funds “are probably the most vulnerable funds in the school district” to theft or loss. Much of the money collected is cash, and districts nationally struggle with keeping track of it, Morales said.
Under district policy, principals are personally responsible for all collected money. Atlanta schools have seen high staff turnover in recent years, with some schools getting a new principal nearly every year.
Morales said his office is trying to improve controls.
“I suspect the majority of problems cited (in internal audits) are just procedural issues that should have been followed,” he said. “I think we have pretty good checks and balances to ensure those funds are appropriately accounted for.”
But, in general, finding the same problems repeatedly is a cause for concern.
“Within a one-year cycle you would definitely look for improvement in those findings,” said Chris Griner, president of the Georgia Association of School Business Officials.
A high number of problems districtwide can be a reflection on a district’s central office and on school administration, he said.
“Any system can have policies and procedures. It’s whether you’re enforcing those policies and procedures,” Griner said.
Internal audits have repeatedly cited Atlanta schools for failing to follow such basic financial procedures as issuing receipts for money collected from students, depositing funds within three days, and providing documentation for payments out of their accounts.
At Mays High School, teachers weren't given receipt books until last school year. For nearly an entire school year, the principal never checked bank deposit amounts. And while district policy generally requires competitive bidding for purchases above $2,000, the football coach's volunteer assistant was paid more than $15,000 for catering. After Shanrika McClain, president of the Mays football booster club, complained that the assistant never actually provided some meals and raised other questions about school spending, the coach's supporters rallied against her.
At Young Middle School, more than $7,500 in class dues, locker fees and cheerleading fees could not be located, more than two dozen checks were written from school funds without proper approval and key financial records were missing, according to the most recent internal audit obtained under the Georgia Open Records Act. Auditors recommended checking to see if any “improprieties” occurred. Atlanta Public School officials did not respond to questions about whether an investigation took place, describing it only as “an ongoing matter.”
At Hutchinson Elementary School, losses of hundreds of dollars were written off, according to an internal audit. Money collected from families was kept in an unlocked desk drawer and the records documenting when and how much money was given to the district’s armored car service for deposit were destroyed.
Mays’ and Hutchinson’s principals are still on the job. They did not respond to messages from The Atlanta Journal-Constitution. The Young Middle School principal no longer works for the district.
Morales, who started work as the district’s chief financial officer last summer, said he’s reviewing district procedures to find areas for improvement. Central office staff offer training for school staff who handle money. And some schools have started using online payment systems, which reduce the need to collect cash.
“I want to make sure that we have strong processes,” he said.
About the Author
