Auditor's Report Inconclusive on School Fraud
The examination delved into the Middle School PTO's bank account over two years and included interviews with former Middle School Principal Ralph Watson. The report is available below in its entirety.
The town-funded auditor's fraud examination of the Middle School PTO bank account concludes that internal controls were such that there was an opportunity for fraud. But the examination's results are inconclusive on whether fraud took place between December of 2009 and December of 2011. Ralph Watson, the former Middle School principal, was interviewed twice as part of the examination. Findings listed in the report, which is attached to this post, include the following: The auditor, Sullivan, Rogers & Company, began its investigation a little more than a year ago, Jan. 23, 2012. Upon finishing it, the forensic accountants recommended that the town consider forwarding the report to police and the Attorney General's Office for their review…
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Mary DeChillo
1:30 pm on Thursday, February 21, 2013
In 2004 the school department asked for a forensic audit in another matter and was told at that time that it had many illegal accounts--some using the tax ID of another group--which had to be shut down. The auditors also said that all financial transactions in the schools had to be done by check written out to the "Town of Swampscott" and overseen by the Town Treasurer. Ms. Demkowski is still the… more ›