Dear Holton community,
I am writing to let you know about a financial matter that our school district is working through. Last summer, we became aware that we were the victims of financial fraud. Multiple times, someone from out of state withdrew funds from the district’s bank account totaling $121,250.
Unfortunately, we were in the process of changing district accounting systems when these illegal withdrawals were made. While this created a temporary blind spot for our staff, we acted swiftly as soon as we became aware of the district’s loss thanks to our local bank.
With the banks help, we conducted an internal investigation, reported the theft to law enforcement, and filed a claim with our insurance provider. We have also worked with an attorney from the Kansas Association of School Boards, as well as an outside accountant with extensive experience in school finance. The Board of Education has been informed of these steps and involved in decisions all along the way.
With help from the attorney and accountant, we have made updates to our procedures and controls for district finances. These updates will help us make sure we are not victims of a similar crime in the future. Our insurance has paid the maximum benefit of $50,000; at this time, it appears unlikely we will get back the remaining $71,250.
Our board and staff understand and take seriously our role as stewards of our community’s investments in our schools. I want to emphasize that none of our employees had knowledge of the fraud or supported it in any way.
Thank you in advance for your understanding and trust as we move forward. If you have questions, please reach out to me.
Sincerely,
Bob Davies, Superintendent of Schools
