School’s ex-treasurer sued after AP audit uncovers embezzlement

The former treasurer for the Mitchell Community Schools in Mitchell, Indiana, is being sued for embezzlement. Last month, Kathy Kirk was charged with corrupt business influence as well as theft and forgery.

After an accounts payable audit was conducted by the State Board of Accounts, it was revealed that Kirk had allegedly embezzled more than $85,000 from the school system. She is now being sued for that amount plus auditing costs by Indiana Attorney General Greg Zoeller.

"This abuse of public trusts in misappropriating funds for personal use is intolerable and we will use every legal tool at our disposal to compel repayment from this defendant and reimburse the public treasury," Zoeller said in a statement.

During the audit, examiners found that Kirk committed four types of misappropriation. She allegedly used close to $77,000 to pay for personal expenses, including restaurant, clothing and jewelry purchases – and even to pay for her daughter's college tuition.

The audit also found discrepancies pertaining to duplicate payments where checks were used for the same purchase, but not approved by the school board. According to the audit affidavit, Kirk allegedly deposited payroll checks for a former employee into her own personal bank account.

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