The Arkansas Department of Education announced Monday morning a takeover of a school district in the state's Delta region.
In a news release, the agency said the "financial integrity" of the Earle School District was jeopardized due to substantial audit violations and unallowable expenses over the last two academic years.
"While we never want to exercise the right to assume authority of a school district, this action is necessary in light of the serious lack of financial stability and academic oversight and the ongoing risk of improper spending of taxpayer dollars," Arkansas Department of Education Commissioner Johnny Key said in the release.
Key said the department's goal is to stabilize the district's finances and management to create a sound learning environment.
The district was classified as being in financial distress Oct. 12, the Arkansas Democrat-Gazette previously reported. The district reportedly did not appeal the designation.
According to the news release, the department conducted a review Oct. 24 and 25 that revealed more fiscal problems, including about $2 million in improper expenditures of state and federal funds beginning in the 2015-16 school year.
Other issues included inaction to implement the department's guidance to correct the district's budget and spending practices, poor fiscal management procedures amd improper reporting of activity funds, expenditures exceeding revenues.
The Arkansas Department of Education also noted multiple violations of standards involving student transcripts, teacher assignments and special education teacher certification.
The district's superintendent, Rickey Nicks, has resigned, the agency said, and the authority of the Board of Directors has been suspended. Key said the board can work in an advisory capacity to the new superintendent: Richard Wilde of the Arkansas Department of Education School Improvement Unit.
The district will also undergo a legislative audit, according to the release.
Read Tuesday's Arkansas Democrat-Gazette for full details.