Hands in the Till: Embezzlement of Public Monies in Mississippi

Chapter 5. Schools

5. Schools Officials of public school districts, community colleges, and universities are required by law to establish accountability for and protect all monies that flowinto their units. These officials must also ensure that all disbursements made by their units are legal, properly documented, and that the accounting for each disbursement is proper. The OSAhas audit authority for public school districts and their various subunits, community colleges, and universities . This section describes four embezzlements from public high schools, one from a community college, and four from universities. Sharon Morgan, Columbus Municipal School District Bookkeeper The OSAreceived a complaint on October 21,1997, from Kenneth Hughes, business manager of the Columbus Municipal School District Office. Hughes alleged that Sharon Morgan, the district's activity funds bookkeeper, had altered activity fund checks and kept the money for herself. Morgan was suspended without pay October 3and terminated October 7,1997. Hughes said that Morgan admitted taking the money and agreed to pay it back. Hughes also referred the matter to the Columbus Police Department. OSAassigned investigator Lewis Johnson to the case on October 21,1997. Hughes discovered the embezzlementwhenthe athletic department "came up short."Hughes then notified the bank to start sending the bank statement to his attention. Prior to this, Morgan received the athletic fund bank statements and kept them in a locked filing cabinet. During the time Morganwas alleged to have been embezzlingmoney,the fund waskept afloat by gate and concession receipts and other athletic department revenues. Investigator Johnson's report, dated February 20,1998, contains the following paragraph that outlines events surrounding the discovery of the embezzlement . 8» t In September 1997,Kenneth Hughes, according to his statement, was checking the athletic petty cash fund bank statements when he discovered severalchecks were written in the name of Sharon Morgan. Checking further, more bank records revealed that shehad written checks also in her husband's name, Richard Morgan. Mr. Hughes stated that he began to total up the checks and discovered that the checks totaled over $30,000. Mr. Hughes called Sharon Morgan in his office October 3,1997, and confronted her about the checks. According to KennethHughes' statement, Sharon Morgan told him that she and her husband had split up in the summer of 1995,and she could not make ends meet and needed extra money.After sheadmitted taking the money,Mr.Hughes contacted Assistant Superintendent John Zerangue and notified him of what was discovered. Sharon was suspended and later fired. In talking with Mr. Hughes, he informed me that Mrs. Morgan had total control over the bank account and kept it under lock and key,and no one had access to this account. On October 9,1997, the School District turned the matter over to the Columbus Police Department's Captain [Corporal] Rick Jones. Sharon Morgan was arrested and charged with embezzlement by Captain [Corporal] Rick Jones on November 3,1997. The following is taken from a transcript of an interview with Sharon Morgan conducted by Corporal Rick Jones of the Columbus PoliceDepartment on November3,1997. R I C K J O N E S : And you're saying that you were needing the money to maintain two separate households and that was, a, as a result of a separation or divorce or... S H A R O N M O R G A N : Separation that lasted twoyears. Urn... R I C K J O N E S : Were you paying... ?Nowyour husband's name isRichard Morgan. S H A R O N M O R G A N : Yes. R I C K J O N E S : And Richard Morgan's name ison the face of some of these checks. Did Richard have any knowledge that you were putting his name on this or did he receive any proceeds from this check? S H A R O N M O R G A N : No. He had no idea. Urn, that's one of the things about, you know,he alwayslet, what, like with the petty cash account, I maintained the checking counter and the bank statements in reference to, youknow, to making sure the bills got paid even though wewere separated. He, because Columbus Municipal Schools 149 his checkisdirect deposited, so,youknow, heneverwentto the bank.Hedidn't do that kind of stuff. Urn... R I C K J O N E S : Andthe moneyyouwere using,uh,it wasto helpholdyour household during the separation. S...