The recent release of the results of an accounts payable audit conducted on Riverwood High School in Fulton County, Georgia, led to the school principal's resignation, the Buckhead Patch reports.
The AP audit, which covered June 2008 to July 2009, found that former principal Eddie Echols used the school's credit card for personal expenses. Insufficient record-keeping made it impossible for auditors to ensure the money had been fully repaid to the school.
Additionally, records pertaining to several of the school's accounts – including those related to principal expenses and student activity funds – indicated that they had been overdrawn, and receipts from athletic events had not been entered into the system for as long as nine days, the news source reports.
"At this point there has been no indication that there (was) any financial loss to the school," Samantha Evans, executive director of communications for the school district, told the news source. "This is more about not following board policy."
As auditors noted, "(Record-keeping) deficiencies render assets more susceptible to loss or fraud." Instating tighter recording policies can help minimize potential issues, and conducting regular AP audits can identify mismanagement.