Possible missing funds, mismanaged account behind principal reassignment
By Brian D. Wilson
Santa Paula News
Published: April 14, 2006
The reassignment of a popular principal to the classroom was the result of a mismanaged account and possible missing funds, according to documents released by the Santa Paula Elementary School District after a public records request by the Santa Paula Times.
By Brian D. Wilson
Santa Paula Times
The reassignment of a popular principal to the classroom was the result of a mismanaged account and possible missing funds, according to documents released by the Santa Paula Elementary School District after a public records request by the Santa Paula Times.
The Santa Paula Times also attempted to contact Marisela Favila through the Santa Paula Federation of Teachers for comment but received no return phone call.
The SPESD Board of Trustees took their action to reassign Marisela Favila after a lengthy closed session last month. This came after an hour of testimony from parents and teachers, supporting Favila. She had served as Principal at Barbara Webster School From November 10, 2004 through July 15, 2005.
The problems concern the financial records of the Friends of Barbara Webster Parent Group. It appears there could be nearly $8,000 missing from funds raised during the time Favila had control over the Parent Group checking account. Favila reportedly cancelled a bookkeeping service that had been taking care of the account when she took over as Principal.
Patti Fulbright, the current Principal at Barbara Webster, contacted the Finance and Business Services Division of the District Office seeking help in December of 2005. Cathy Bojorquez, Director of Budget and Finance said Fulbright told her that she had received a call from an attorney representing QSP stating that the Friends of Barbara Webster owed $11,434.70 from fundraisers held the previous year. QSP provides candy for fundraising. Fulbright had a duplicate check copy from a check written in October, but a call to the bank confirmed that the check had not cleared the bank. Fulbright also reported that she had received notification of numerous returned deposit items for deposits made in November that she had no knowledge of. Fulbright reportedly talked to Favila and learned that Favila had made deposits in November related to prior year fundraising activities. Fulbright said that Favila offered to cover the amount of the returned items. At this point Fulbright contacted Bojorquez and requested help on how to proceed.
Bojorquez states that she repeatedly requested that Favila turn over all documents related to the Parent Group in December of last year. Fulbright said the only thing she had received was the checkbook. Finally, in January of this year Favila turned over documents to Mike Bush, Assistant Superintendent of Business Services. However, they only covered the three previous years and a portion of the 2004-2005 school year, prior to her becoming Principal. Favila maintained from the beginning that she had turned over all of the 2004-2005 paperwork to Fulbright in October of 2005. Bojorquez said that Favila waited until March 14 of this year to mention that she had copies of the original documents that she had given to Fulbright. Favila gave the Board of Trustees bank statements on March 14 starting in October 2004 and ending in June 2005. Bojorquez said that, because these statements had not been turned over in a timely manner, she had already requested copies from the bank.
The district hired Vicenti, Lloyd, Stutzman, Business Consultants and CPAs to examine all of the available records and issue a report, which they did in January of this year.
Carroll H. King, Director of Internal Audits and Fraud Examination Services issued a confidential report to the school district. “Overall, we were able to determine that accounting and record keeping for the Booster Club lacked adequate management and internal control,” she said. “As a result, the financial transactions were at risk of misappropriation. The unusual transactions of the Booster Club.....appear to be due to the lack of adequate knowledge of accounting control rather than from fraudulent activity. However, because part of the methodology of any fraudulent activity is to conceal its existence, we do not offer an opinion as to whether or not it exists.”
Favila was interviewed by the consultant group and told them that she had not been trained in the appropriate application of controls or the proper treatment of financial transactions.
The consultant’s report notes that almost $17,000 was deposited into the Wells Fargo Bank on November 8, 2005 using 12 different deposit slips. Favila had been transferred to Grace Thille School in July 2005. During the following week 12 items were debited or reversed from the deposit because the checks could not be processed. Some of the checks were 10 months old. The total amount of the returned items was $459.75. Apparently Favila collected cash and checks from fundraisers, totaling $16,426.25, put the money in separate envelopes and placed the envelopes in her desk drawer.
In her report to the Board, Bojorquez says there appears to be between $6,481.25 and $7,969.25 in missing funds raised during the time of Favila’s control over the Parent Group checking account. In addition, she adds that “If board approved fundraisers other than the Pacific Fundraiser and QSP were held, those funds are unaccounted for. Based on the information available I am unable to estimate what amount those fundraisers would have totaled. Based on interviewing a teacher and documents provided by Ms. Favila it is evident that Ms. Favila was in possession of Parent Group cash that was never recorded in the Parent Group’s bank account.”
Finally, Bojorquez said, “Without the benefit of subpoenaed documents I don’t believe I can complete any further analysis of the Friends of Barbara Webster Parent Group. I recommend an independent review of my work be completed to substantiate my findings and conclusion.”
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