Tahlequah Daily Press

Local News

July 2, 2008

Greasy audit reveals myriad concerns

TAHLEQUAH DAILY PRESS — GREASY – A special state audit shows the Greasy School superintendent and four other school employees were paid in excess of their annual contracts.

The audit released recently shows Ronnie Denny, superintendent from the 2003-04 school year through 2006-07, was paid $49,369.05 in excess of his contracts on file with the State Department of Education.

The SDE requested the audit.

The report shows James Limore, Linda Killer, Beverly Cowan and Justin Denny were paid in excess of their contracts by amounts ranging from $12,094 to $40,865 during the same three -year period.

The audit report states approximately $20,000 of Ronnie Denny’s salary was paid with federal funds not reported to the SDE in the 2004-’05 and 2005-’06 school year.

An audit summary also shows a lack of internal control. The school board signed employment contracts subsequent to contract terms and the school paid additional fringe benefits not reflected in employment contracts or in meeting minutes.

The school also failed to take executive session meeting minutes in alleged violation of the state’s Open Meeting Act.

The summary also shows:

• The school failed to expend $25,000 in Cherokee Nation funds during the agreement period. If the school had spent the funds in the agreed time, the district would have ended the year with a negative cash balance of $2,088.52.

• During the 2005-’06 and 2006-’07 school years the school increased its budget by $177,093.45 and $117,554.22 and those amounts were not supported by revenue.

• The school estimated a budget shortfall for the 2007-’08 school year.

• The U.S. Department of Education required Greasy School to reimburse $9,422.88 and the Office of the Inspector General and USDE are in a pending audit-investigation that could result in additional financial assessments to the school.

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