As many are aware the district auditors are conducting a forensic audit and thus far have discovered over $500,000 discrepancy.  Please review the following press releases for more detailed information.

 

Mr. Wetzel shared the missing funds is not from our operating budget, but from our contingency/reserve fund. This is one time money and can not be used for teacher salaries, benefits, or salary increases.  This money is targeted for special projects i.e., School in the Woods, Technology software/hardware upgrades, and Full Day Kindergarten.  As we reprioritize spending this money Full Day Kindergarten is a high priority with the Board of Education.

 

Superintendent Arseneau shared the district is in the process of reorganizing our finance department and once a final report is obtained from our auditors more information will be shared. 

 

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Woodland Park School District Press Release
November 3, 2008
 
Woodland Park School District's auditors are conducting a forensic audit that began October 20, 2008 in response to inconsistencies they discovered in the 2007-2008 preliminary financial audit. Woodland Park School District, located in Woodland Park, CO. has a student population of approximately 2800 students and an operating annual budget of approximately 26 million dollars. This forensic audit has not been completed, but the investigation thus far has revealed that it appears a long-time and trusted District employee fraudulently manipulated our accounts over a period of at least four years for personal gains. The current amount discovered through the audit exceeds $500,000 and the investigation will continue until all years and accounts have been cleared.  The employee has been terminated as a result of this discovery. No other District personnel have been implicated.

This employee was able to manipulate funds in such a manner as to avoid detection by our internal procedures as well as the annual financial audit. During the 2007- 2008 annual financial audit, auditors discovered larger than normal adjustments that were not present in previous years. This information led to a forensic audit that began October 20, 2008. Currently, auditors believe the activity began in the 2004-2005 school year. Years prior to 2004-2005 are also being investigated, but at this time no inconsistencies have surfaced.

As soon as questions were raised surrounding the 2007-2008 financial audit, the school district immediately implemented increased security precautions to ensure no further such activity could occur. The District is working closely with the auditors to develop additional internal financial policies and procedures to safeguard all District funds. We anticipate this to be an ongoing process while the District's financial department is being reorganized.

Since October 20, 2008, the District has been working closely with the Woodland Park Police Department. Their investigation may result in criminal charges which would be filed with the Teller County District Attorney. The school district will also pursue a civil suit against the former employee. The Colorado Department of Education Finance Department has been notified and is assisting the District in its investigation. The funds missing will not directly affect any current or future programming, teacher salaries, or operating expenses including transportation in the Woodland Park School District. District reserve funds will be used to temporarily offset any missing money while the District pursues all avenues to recover these funds. Potential recovery methods include District insurance, recovery through the civil suit, and any possible restitution  resulting from criminal proceedings.

Woodland Park School District is deeply concerned about this matter and the breach of trust that has apparently occurred.  It has always provided an outstanding education for all students and will continue to do so. Our goal and belief is to provide our students and staff with all the necessary support needed to continue our pursuit of academic excellence and cutting edge programming. Accountability to our community, students, parents and staff will always be a top priority as we move forward from this very unfortunate situation.

Due to the ongoing investigation, the upcoming civil suit and possible criminal charges, no further information or details can be released at this time.  
 
 
 
Woodland Park School District Press Release
October 23, 2008

Violations of district policy concerning financial records have been discovered as a result of the current accounting review.  A district employee has been placed on administrative leave.  All necessary precautions have been taken by the district and our auditors to protect district funds and records, and to ensure that no further violations can occur.  The Woodland Park Police Department has been notified and is conducting its own investigation.  The district is cooperating fully with authorities.  Only limited details are available for release until these investigations are completed.
 
Guy Arseneau, Superintendent of Schools
Woodland Park Teller Re 2
 
 
 
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Woodland Park School District Press Release
October 22, 2008
 
The annual audit of the Woodland Park School District has reported discrepancies. The district has requested that the school auditors, Johnson, Holscher & Company, return to conduct a thorough accounting review of all 2007-2008 district financial records.  This review is currently in progress and a full report will be available upon completion.
 
 
Guy Arseneau, Superintendent of Schools
Woodland Park Teller Re 2