The Arizona Auditor General’s Office conducted an investigation revealing that from December 2008 through July 2013, the former business manager for Topock Elementary School District, misused $236,548 of district monies. The former business manager misused $138,611 of these monies for herself, $75,455 for her daughter, and $22,482 for one of her associates who did business with the District.
The Auditor General did not name the former business manager and her associate passed away in February 2017. HavasuNews.com identified the business manager as Kimberly J. Konnerth.
The Auditor General provided the report to the Arizona Attorney General’s Office, which, on August 8, 2017, presented evidence to the Arizona State Grand Jury. The action resulted in the indictment of the former business manager’s daughter, Sarah Diaz, on 13 felony counts of theft, fraudulent schemes, forgery, and theft of a credit card. In addition, the District filed a claim with its insurance company and was reimbursed for the public monies the former business manager misused.
The report reads in part:
From December 2008 through July 2013, the former business manager and her daughter misused several district credit cards to make 706 and 283 respective personal purchases with corresponding totals of $118,151 and $49,367 for such purposes as gift cards, home utilities, internet, cable and phone services, auto loan payments, home improvement, baby equipment and supplies, patio furniture, fuel, and alcohol. They made these purchases using credit cards the District held with Wells Fargo, Home Depot, Lowe’s, Walmart, Amazon, and Voyager Fleet Fuel.
From February 2011 through May 2013, the former business manager withdrew cash twice from a district bank account totaling $2,170, issued five district checks to herself totaling $18,290 (collectively $20,460), and issued four district checks to her daughter totaling $26,088. She also wrote false payees or omitted the entire transaction in district accounting records for both cash withdrawals and for eight of the checks. The District could not locate accounting records for the remaining check. The former business manager deposited the five checks payable to her in her personal bank account where it was commingled with other monies and used for debt payments, cash withdrawals, retail purchases, and payments to individuals, including her daughter. Her daughter deposited the four checks payable to her in two of her personal bank accounts when the balances were negative or less than $25, and used the money for cash withdrawals, debt payments, and home improvement and retail purchases, admitting to Auditor General staff that personally using these monies was illegal and wrong.
From October 2009 through December 2011, the former business manager issued eight district checks totaling $22,482 to her associate, each time entering in the District’s accounting records false vendor numbers and false purchase order descriptions. Although her associate owned an information technology company that did business with the District, these checks were payable to him personally and not to his company. Likewise, invoices to support these payments could not be provided by the District, the associate, or his company. Moreover, the associate paid the former business manager $19,837 by writing eight checks to her near the same time he received the eight district checks. In fact, three of these checks matched the exact amount of the district checks she issued to him. The associate spent the remaining $2,645 on his personal debt, cash withdrawals, and medical expenses.