Former Gila Bend Unified School District employees, Margaret Perry, a secretary, and her daughter, Lindsey Fernandez, an accounts payable clerk, were indicted by the State Grand Jury on 4 felony counts related to conspiracy, fraudulent schemes, misuse of public monies, and theft.
The indictments follow an investigation by the Arizona Auditor General’s Office that found from June 2019 through August 2019, the two women may have participated in unauthorized Amazon purchases totaling $1,476.
Auditor General findings:
Ms. Perry began her District employment in 1985 as an administrative assistant and became District and governing board secretary in July 2003. In this position, her responsibilities included using a District credit card, primarily to purchase school-related items at local dollar stores. Ms. Fernandez began her District employment in 1999 as a teacher’s aide and became the accounts payable clerk in July 2012. In this position, her responsibilities included reconciling District credit card statements to receipts and initiating the issuance of District warrants to pay the credit card, as well as other District bills. Both Ms. Perry and Ms. Fernandez resigned on August 16, 2019, shortly before a District review of fiscal year 2019 credit card transactions revealed their alleged unauthorized purchases.
On June 20, 2019, after receiving an email from Ms. Fernandez with a specific laptop picture but no written message, Ms. Perry used her District credit card to purchase from Amazon that laptop and a mouse totaling $1,448 and an Amazon Prime membership, the benefits of which included next-day delivery. On June 21, 2019, Ms. Fernandez retrieved the package from the District office, remarking to a coworker that it was a graduation gift for her daughter, to whom she gave the laptop on or around the same day.
Ms. Perry did not cancel the Amazon Prime membership. As a result, membership costs associated with this laptop/mouse purchase totaling $28 were charged to the District credit card before the District canceled the card after Ms. Perry’s August 2019 resignation, resulting in total unauthorized purchases of $1,476. Likewise, before Ms. Fernandez resigned in August 2019, she prepared documents for the issuance of 2 District warrants used to pay down District credit card balances, which included the laptop/mouse purchase. Although District credit card purchases should be supported with documentation, Ms. Perry failed to provide a receipt to Ms. Fernandez.
Former District officials allowed employees to use District credit cards without adequate oversight. Specifically, they failed to consistently ensure employees submitted supporting documentation for credit card purchases such as purchase requisitions, purchase orders, invoices, and transaction receipts to allow for adequate review and approval, including verification that the purchase was for an appropriate District purpose. Additionally, they failed to require employees to sign cardholder agreements. Finally, although Ms. Fernandez was responsible for reconciling District credit card statements to receipts, she failed to consistently do so, and former District officials took no action to resolve her failure. Accordingly, some payments were made toward the credit card balances without proper review and approval of supporting documents.