An investigation by the Arizona Auditor General’s revealed that from November 2010 to January 2013, Shannon Cavalliere, former Yucca Elementary School District business manager, embezzled and misused $4,361 of public monies for her own benefit.
On February 19, 2015, the Mohave County Grand Jury indicted Ms. Cavalliere on felony charges related to theft, misuse of public monies, and fraudulent schemes.
Auditor General’s findings:
Ms. Cavalliere began her district employment as a teacher’s aide, later becoming the business manager in July 2009. She managed general finances, including paying for travel expenses and credit card bills, and overseeing the District’s Field Trip and Educational Funds bank account (Field Trip account), which, as explained on the next
page, was not an authorized bank account.
As a result of a governing board inquiry regarding unusual charges on her district credit card, Ms. Cavalliere presented a $1,172 cashier’s check payable to the District at the January 15, 2013, board meeting and apologized for misusing district monies. She also submitted her resignation effective the next day.
Ms. Cavalliere used district credit and debit cards for personal purchases and cash withdrawals totaling $3,891
From November 2010 through January 2013, Ms. Cavalliere embezzled and misused $3,148 of public monies by using a district credit card and the Field Trip bank account debit card. She made 63 personal purchases for such items as clothing, weight management products, electronic media and games, and an iPod as a gift for a family member. Similarly, Ms. Cavalliere withdrew cash using the Field Trip bank account debit card on six occasions totaling $743.
In an interview with Auditor General staff, Ms. Cavalliere acknowledged the likely personal nature of these transactions; however, she declared that they were mistakes.
Ms. Cavalliere improperly paid herself $470 for mileage
In January 2012, Ms. Cavalliere used district monies to pay herself $470 for mileage reimbursement even though she previously requested and received permission from the District’s former superintendent to bypass the mileage reimbursement process and purchase fuel directly with a district credit card. Accordingly, from May 2011 to August 2012, Ms. Cavalliere used the district credit card at service stations 24 times, totaling $1,152, in lieu of receiving mileage reimbursements. However, in January 2012, she prepared, authorized, and processed her own travel claims to pay herself an additional $470 of district monies for mileage reimbursement while also using the district credit card at service stations on the same trips.
Former district administrators facilitated district officials’ mishandling of public money
In October 2001, former district administrators facilitated mishandling of public monies by improperly establishing
the Field Trip bank account for purposes not authorized by state statutes. Allowable bank accounts are specifically prescribed in Title 15 of Arizona Revised Statutes and must be used only for their statutorily authorized purposes.
Having this Field Trip bank account made it easier for Ms. Cavalliere to misuse public monies. Although district officials did not maintain records to support most Field Trip bank account transactions, they indicated deposits were from various sources, including donations and fees, student fund-raising proceeds, and money from other district funds reimbursing the Field Trip bank account for various expenses such as student travel, supplies, and repairs. These various public monies should be deposited in separate district funds to help ensure the District appropriately manages and protects them.
District officials failed to provide adequate oversight and maintain effective internal controls
District officials did not provide adequate oversight to ensure the appropriateness of Ms. Cavalliere’s credit card and Field Trip bank account debit card transactions. Specifically, the District allowed Ms. Cavalliere to make purchases and cash withdrawals, reconcile receipts and invoices to statements, pay credit card bills, and use the Field Trip bank account’s debit card without any independent review. Moreover, until our investigation, district management was unaware of at least two open credit card accounts and one card that was still associated with a former employee.
Additionally, the District allowed Ms. Cavalliere to prepare, authorize, and process her own travel expense claims without any independent review or approval.