A spokesperson for Cheatham County Schools says thieves skimmed two district credit cards used for fuel purchases and then used them to make other purchases.
The issue with the cards gained public attention through a new report by the State Comptroller’s Office that found nearly $60 thousand in inappropriate spending on the cards.
“The Cheatham County School District uses credit cards for school bus fuel purchases. Two cards were skimmed when used at a Cheatham County business. The thieves then reportedly used the card information at other businesses in Middle Tennessee,” said district spokesperson Tim Adkins in a statement. “The district was able to catch most of this activity and turned it over to law enforcement. No employee in the district made any fraudulent charges or misused the cards. The district has additional checks and balances in place to ensure this doesn’t happen again.”
The school district first received notice of card misuse in March of 2021 and again seven months later according to the audit. Cheatham County Schools has since managed to recoup roughly half of the misspending through the company that provides the cards.
Comptroller auditors examined the card spending in their 2020 audit of Cheatham County and that probe provided some criticism for the district. Auditors believe deficient district policies contributed to the level of card misuse.
“The school department did not have written policies and procedures regarding the use of fuel cards. The lack of formal policies and procedures over fuel cards resulted in unauthorized purchases,” wrote the Comptroller’s Office in the report.
Comptroller auditors also questioned a $9,000 bonus Cheatham County Schools paid Director of Schools Cathy Beck a from federal grant funds.
The bonus met federal documentation requirements according to the Comptroller, but it wasn’t formally approved by the Cheatham County School Board, and it caused Beck’s income to exceed her employment contract amount.
“For many years our office has recommended that Cheatham County adopt a central system of accounting, budgeting, and purchasing,” said Comptroller Jason Mumpower. “This is a best practice that would centralize the funds administered by the county mayor, road superintendent, and school department under one office. We believe this would significantly improve accountability and the quality of services provided to the citizens of Cheatham County.”
This story was updated to include new information from Cheatham County Schools.
