A new state audit says a former Indian River School District administrator misused taxpayer money, forced workers to share financial login information with him and skirted federal grant rules.
Patrick Miller suddenly retired as the district’s chief financial officer in June after he was placed on administrative leave for a human resources related incident.
State Auditor Tom Wagner’s office received several fraud tips late last year to prompt the investigation, which the Attorney General's office is currently reviewing.
Employees say Miller asked for their state accounting system passwords to process financial transactions under their names and approve them himself.
He also miscalculated staff salaries, handling all payroll duties himself, according to the audit.
Miller’s sister-in-law works as a secretary and reported directly to him before he retired. No pay disparity was found, but Wagner’s office says it’s still considered nepotism under state ethics rules.
While working for the district, Miller also served as president of the Oak Orchard Boys and Girls Club, and also led the Indian River Volunteer Fire Company.
In fiscal years 2012 and 2013, Miller awarded $24,000 of district money to the club. Those funds came from a federal grant supposed to be used for special education and programs for children with disabilities.
Another roughly $6,300 worth of public money was used to buy 15 iPad Air tablets, with the rest of the $8,500 grant unaccounted for.
In 2015, the Indian River Volunteer Fire Company, under the leadership of Miller, bought an ATV, customized it with school colors for Sussex Central High School and sold it to the district at a $4,500 profit.
“The district has been very cooperative with us throughout this and have asked us to come in, and which we have agreed to come in and help them in some areas where [we] can be of assistance and I think we move forward," Wagner said.
In a letter to the state auditor’s office, district superintendent Susan Bunting says they have hired a new “well-reputed” Director of Business, will review staff salaries and implemented several changes suggested by the report.
District officials say they will address the audit in a news conference Friday morning.
The lesson overall, Wagner says, is “One person cannot have too much strength over the operation of an agency and that, at the end of the day, boards of directors matter and senior management matters.”
The audit comes less than a week before Indian River School District residents vote on a $7.4 million tax referendum.
