USD 336 Holton Public Schools Superintendent speaks out about financial fraud incident

Dear Holton Community,

I am writing to inform you of a financial matter our school district is currently dealing with. Last summer, we became aware that we had been the victim of a financial scam. On multiple occasions, someone from out of state withdrew funds totaling $121,250 from the district’s bank account.

Unfortunately, we were in the process of converting the county’s accounting systems when these illegal withdrawals occurred. While this created a temporary blind spot for our staff, we responded quickly when we learned of the county’s losses thanks to our local bank.

With the help of the bank, we conducted an internal investigation, reported the theft to law enforcement, and filed a claim with our insurance provider. We also worked with an attorney from the Kansas Association of School Boards as well as an outside accountant with extensive experience in school finance. The Board of Education was informed of these steps and was included in decisions throughout the process.

With the help of the attorney and accountant, we have updated our procedures and controls for the county’s finances. These updates will help us ensure that we do not become victims of a similar crime in the future. Our insurance has paid out the maximum benefit of $50,000; at this time, it seems unlikely that we will recover the remaining $71,250.

Our board and staff understand and take seriously our role as stewards of our community’s investment in our schools. I want to emphasize that none of our staff had any knowledge of the fraud or supported it in any way.

Thank you in advance for your understanding and trust in the future. If you have any questions, please contact me.

Sincerely,

Bob Davies, School Councillor