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Cartwright board confronts $2.1 million in IRS penalties, orders records and procedural review
Summary
Board members and community speakers pressed district staff for details after Business Manager Derek Etheridge briefed the board on roughly $2.1 million in penalties to the U.S. Treasury. The board discussed procurement and voucher processes and requested records and possible executive-session follow-up on personnel and legal expenditures.
The Cartwright School District governing board discussed an approximately $2.1 million penalty the district reported to the U.S. Treasury and the Internal Revenue Service, with board members pressing staff for documentation and an explanation of how the expenditure was processed.
Board President Lydia Hernandez and Acting Superintendent Watson told the board that district staff are investigating “how that expenditure was made” and working to provide a transparent record. Derek Etheridge, the district business manager, briefed the board in an earlier presentation on the penalties and explained that the charges were submitted as vouchers and paid; Etheridge told the board the amounts at issue were $1.6 million related to a 2017 issue and $500,000 for a separate matter, for a total of about $2,100,000.
The discussion centered on procedural safeguards and whether the board had been properly informed before the…
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