2022 Embezzlement

[admin]

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It is interesting that after 8 months, we haven't heard a word, and apparently charges haven't been filed. This is after a confession was made.

-Admin

[admin]

The longer this goes on, the more I think this is being swept under the carpet. Not good as we are coming up on a bond vote.

[admin]

Statement from Mustang Public Schools:

On April 22, 2022, working in conjunction with the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and local law enforcement, Mustang Public Schools (MPS) announced that they had become a victim of embezzlement by a longtime employee. The statement read:

One of our staff members was placed on leave and eventually resigned late this week after district internal financial controls uncovered irregularities which pointed to potential embezzlement. Within hours, district administration contacted law enforcement and auditors to initiate investigations which are on-going.
“We are disappointed and saddened by this alleged wrongdoing perpetrated by a longtime District employee, but we will fully cooperate with any/all investigations into the matter,” Superintendent Charles Bradley said.
As this is a personnel matter and the allegations are currently under investigation, the district is not able to provide further information at this time.

The investigation has now concluded and the matter has been referred for prosecution through the Judicial System.

Additionally, the MPS Board of Education learned of a potential breach of contract by then Chief Financial Officer (CFO) Nancy McKay, which led to the termination of her contract at the Board meeting held on Monday, May 6, 2022.

From the onset, MPS fully cooperated with investigative agencies and, under the guidance of newly hired CFO Mr. Jeff Landes, an independent audit was conducted and presented to the Board at last night's meeting (January 9, 2023). The audit found that the “District had internal controls in place, however, the payroll administrator…had the ability to circumvent [these] procedures.” The audit recommended that MPS enforce current procedures and provide sufficient oversight to prevent future misappropriation(s).

Current Procedures, Oversight, & Steps Taken To Address Audit Findings: The director of payroll and the chief financial officer are no longer employed by Mustang Public Schools. A separation of duties has been implemented between the payroll staff to minimize the risk associated with a singular point of data entry. Payroll entries now directly correspond to the personnel system to provide consistency and clarity. Additionally, a full set of payroll processing reports are now computer generated and given to a third staff member to review each pay period, and in-depth payroll reports for each member of the finance team will be reviewed by the CFO and the audit team.

It is important to note that this employee embezzlement affected payroll services and at no time were Bond funds implicated or impacted by this former employee's actions. Based on recommendations from law enforcement, the IRS, and independent auditors, additional financial controls have been put into place to safeguard the finances of MPS. While this incident is very disturbing, it is important to note that this was the action of an individual, and not reflective of the greater financial stability of the District.

In sum, our team of financial professionals uncovered this wrong-doing, reported it, cooperated fully during the investigation, implemented recommendations to improve and prevent future misappropriation of funds and stand ready to support the responsible management of all funds, including Bond funds, moving forward. We greatly value the trust that is placed in us by our community of stakeholders, and understand that this incident has led to a question surrounding that trust. We vow to work hard to prove ourselves trustworthy, and look forward to that opportunity.

[lufkin]

I posted on FB asking for more information on this. John Wilson (The District) responded saying the the IRS and the Secret Service are the ones investigating this.

[admin]

Statement from Charles Bradley 7-28-2023 - Sent Via Email

Mustang Families,

It is hard to believe, but we are a mere 13 calendar days from the first day of school on Friday, August 11, 2023! I am excited to welcome everyone to the 2023-24 school year! We will be sending out information in the coming days about the beginning of school, but today's message is to provide an update on the Accreditation status of our District with the Oklahoma State Department of Education.

As you may remember, last year, the Accreditation of Mustang Public Schools was downgraded to Accredited with Warning by the Oklahoma State Board of Education; this decision was made without due process being afforded to our District. Despite this, MPS has spent the last year working hard to remedy any issues that would negatively impact our accreditation status. We have worked hand in hand with the Accreditation Division of the OSDE to ensure no further deficiency exists in the areas cited last year. We are pleased to inform you that with the vote of the Oklahoma State Board of Education yesterday, this is now the case.

As you may also remember, in April 2022, district internal financial controls uncovered irregularities pointing to potential embezzlement. A subsequent independent audit confirmed irregularities existed. From the moment questions surrounding the possible misallocation of funds arose, MPS personnel worked and cooperated with law enforcement. This matter is still in the hands of investigators and attorneys. As such, we cannot provide any additional updates at this time, but we will do so as soon as possible.

However, the above-referenced audit was submitted to the State in February 2023 in line with financial reporting requirements. Due to the findings of this audit, the Accreditation Division of the OSDE has informed us that Mustang Public Schools is one of thirty-eight Oklahoma School Districts that will receive an accreditation deficiency for "Noncompliance with OCAS (Oklahoma Cost Accounting System)." This places MPS at the accreditation status of Accredited with One Deficiency for 2023-24, along with 143 other Oklahoma School Districts. This status was confirmed by a vote of the Oklahoma State Board of Education at their regular monthly meeting yesterday, but it should not impact the daily operations of Mustang Public Schools, our staff, students, families, or the community; it merely gives us a focal point for improvement.

As a point of reference, this is the scale of possible Accreditation status levels for Oklahoma:

Accreditation with No Deficiencies

Accreditation with One Deficiency (MPS for 23-24)

Accreditation with Two Deficiencies

Accreditation with Multiple Deficiencies

Accreditation Probation

Accreditation with Warning (Designation of MPS last year)

No Accreditation

While we are not pleased to have a deficiency, we recognize that this is due to the facts surrounding the financial incident referenced above. To avoid repeating this scenario, we have taken steps, including hiring a new Chief Financial Officer, tightening internal financial controls, implementing recommendations provided by auditors, and affirming best practices in accounting. We have been assured that we can resolve this accreditation deficiency through adherence to these steps.

While I prefer not to begin the year with less than positive news, a silver lining exists in this information. MPS has remedied the previous accreditation issues and improved our Accreditation status by four levels. We promise to do everything in our power to continue to improve and strive for Accreditation with no Deficiencies for next year and beyond. As we begin the adventure of a new year, please know that we are here to partner with you and ensure a successful school year for everyone. Please look for our Back To School GlideShow to be sent via email and social media in the coming weeks and for additional information from each school site on upcoming events. Enjoy these remaining 13 days, and stay safe in this latest Oklahoma heatwave!

Sincerely,

Charles Bradley, Superintendent

Mustang Public Schools