The review of Inlet Grove was triggered by anonymous complaints, focusing on seven distinct issues primarily concerning financial controls within the school and its associated foundation. The investigation, spanning January 2022 to June 2023, highlighted $46,000 in deposits and $173,000 in expenses missing from the general ledger, coupled with a lack of supporting documentation for many recorded expenses. Such discrepancies have raised suspicions regarding the misuse of foundation funds, including $4,200 in deposits to the CEO’s personal account for scholarships without evidence of eligibility or attendance records.

Additionally, the school’s operation of a concession stand during the day violated USDA guidelines by competing with the federal lunch program, although this practice ceased in July 2023. Concerns about nepotism were also noted, with six related individuals accounting for 7.5% of total employment and nearly 12% of salary expenses.

The Inspector General’s office concluded its fieldwork by January 2024 and referred the findings to the state attorney’s public corruption unit in April. However, the state attorney declined to take action, citing a lack of a criminal complaint from school police and no information from other law enforcement agencies. Despite this, the school district’s responsibilities concerning oversight, especially of the foundation, were debated, with emphasis on the district’s limited authority over charter schools like Inlet Grove.

In the meeting, a representative from Inlet Grove, along with an attorney, defended the school’s operations, pointing to the educational success of students and emphasizing that all students graduated despite the financial discrepancies. They acknowledged past bookkeeping issues but highlighted efforts to rectify them, including hiring a full-time certified public accountant. The defense also suggested that the audit, based on anonymous complaints, unfairly diverted attention from the school’s achievements.

The Palm Beach County School Board meeting further addressed another financial issue concerning the flea market operations at Lake Worth High School. An audit revealed a rental revenue shortage of $29,817, with unaccounted revenues and unexplained overages. Concerns arose about the absence of reconciliations and verification processes, which contributed to the discrepancies. The audit findings, referencing GAO standards, have been referred to law enforcement due to potential criminal activity.

The flea market, a longstanding fundraiser, faced scrutiny over its cash management procedures and compliance with insurance requirements, resulting in efforts to reduce cash transactions and enhance oversight. These discussions prompted a broader conversation about the need for improved financial controls and accountability across the district’s operations.

In addition to these issues, the School Board addressed proposed amendments to its fraud policy. The changes aim to expand the definition of fraud to include a broader range of deceptive acts and enhance prevention measures. The proposed amendments received approval with a vote.