Saline County prosecutor Ken Casady has launched an investigation into the Bryant School District after a state audit found irregularities in its financial reports, he said Wednesday.
Casady started the investigation after officials with the Arkansas Division of Legislative Audit brought their findings to his office, he said. Auditors typically forward results of the state review to the local prosecutor, who will also examine the findings for possible criminal wrongdoing, he said.
The prosecutor can contact other law enforcement agencies, including the Arkansas State Police, to help with the investigation, but Casady said Wednesday that he had not exercised that option.
The audit, released late last month, found irregularities in the district’s finances. Among the findings was that an unnamed business manager who has since resigned increased two employees’ salaries and started “unauthorized payments” to three employees for health-insurance premiums.
The manager also opened an American Express rewards credit card and made $1.5 million in purchases during fiscal 2013, according to the audit.
Superintendent Randy Rutherford was suspended March 10 but later came to a “separation agreement” with the district. The School Board is currently searching for a new superintendent, and interim Superintendent Fred Dawson will continue to serve in that role until the position is filled.
The district has denied multiple requests from the Arkansas Democrat-Gazette for public records detailing the separation agreement and the reasons for Rutherford’s suspension and resignation.
Arkansas, Pages 11 on 04/10/2014