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Holton's USD 336 loses thousands to fraud

By Brian Hagen

06/12/2024

(KNZA)--The Holton School District has fallen victim to financial fraud.

That's revealed in a release Wednesday, from Bob Davies, Superintendent for USD 336, who says the district became aware of the situation last summer, when "someone from out of state withdrew funds from the district's bank account totaling $121,250."

Davies calls it "unfortunate" that at the time the "illegal withdrawals were made," the process of changing district accounting systems was underway, with Davies saying that while that "created a temporary blind spot for...staff, [the District] acted swiftly as soon as [they] became aware of the district's loss" through notification from its local bank.

That bank, Davies says, helped with the District's internal investigation, which led to the crime being reported to law enforcement and a claim filed with the USD 336 insurance provider. The provider, Davies says, "has paid the maximum benefit of $50,000," but adds that "at this time, it appears unlikely [the district] will get back the remaining $71,250."

According to Davies, updates, with help from the school district's attorney and accountant, were made to district procedures and controls for district finances, with Davies saying those updates will help ensure the district does not become a victim "of a similar crime in the future."

Davies emphasizes in the release that no district employees had any involvement in, or knowledge of, the fraud.

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