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Audit finds Red Rock Elementary superintendent received unauthorized vehicle benefits and excessive stipend; district agrees to reforms
Summary
A performance audit of Red Rock Elementary found the superintendent used a district vehicle and fuel card for personal use not enumerated in contracts, an $18,000 travel stipend that auditors said exceeded reasonable business use (later reduced to $10,000), and absent performance‑pay designation in contracts; the district agreed to implement recommendations and auditors will follow up in six months.
Auditors presented a performance audit of Red Rock Elementary School District that identified governance and internal‑control problems centered on superintendent compensation, cash handling and IT security.
Lisa Park, the contracted auditor, told JLAC the district allowed unlimited personal use of a district vehicle and a district fuel card by the superintendent prior to FY2024 without board‑approved contract language. Auditors noted more than $3,600 charged in fuel in FY2023 and said treating personal commute fuel as an operating expense rather than a taxable fringe benefit may have created tax liabilities and potential gift clause exposure. The audit also found weaknesses in cash handling controls, travel reimbursements and IT password and access settings.
The report found that the board discontinued the vehicle practice and instead authorized an $18,000 annual travel stipend, which auditors said lacked documentation linking the amount to measured business use; the auditors estimated a reasonable annual cost for documented business travel would have been about $7,500 in 2023. The district later reduced the stipend to $10,000.
Auditors also found the superintendent’s employment contracts did not designate any portion of salary as performance‑based pay (statute allows up to 20% as performance pay tied to board‑approved goals). The audit recommended the governing board calculate the value of personal vehicle use, consult legal counsel about repayment or tax corrections if necessary, reconsider the stipend and document its reasonableness, and revise the superintendent’s contract to comply with performance‑pay rules.
Superintendent Peter Dwire and the district described steps already taken: ceasing personal vehicle use, incorporating a vehicle allowance into contracts, working with a third‑party advisor on repayment and tax corrections, documenting performance pay elements in the new contract, and implementing cash‑handling and IT improvements. The Auditor General’s office will follow up in about six months to assess implementation.
Next steps: JLAC asked to receive a status report within three months and the Auditor General said the office will monitor corrective action and the district agreed to cooperate.
