HOT SPRINGS — A Hot Springs school district employee is now facing a law enforcement investigation after allegedly paying themselves more than $13,000 in unauthorized funds.
The school board voted Wednesday night to refer the case to law enforcement following an audit that found evidence of payroll advances, credit card misuse and questionable medical expense payments.
About 50 community members packed the meeting, demanding answers about how the alleged theft went undetected.
"All in favor of that motion? Say aye or raise your hand. Unanimous. That motion passes," said Ricky DePoe, board chairman for the Hot Springs School District School Board.
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An audit of the employee was conducted from June 2024 to July 2025, which found evidence that suggested the employee had paid themselves by payroll advances, using the school credit card and for medical expenses.
The board began the meeting by addressing questions that had been received through the online portal they opened.
Business manager/district clerk Barkley Flynn addressed the question of whether the board knew of the credit card transactions made by the employee.
"The administration and board were not aware of any personal charges on these cards and this practice was not authorized by anyone or it would not have been," said Flynn.
Several community members at the meeting asked the board why the findings in the audit were vague and if the board could further look into transactions made by the employee.
"Are there any plans whatsoever to look into the other cards in the other years? I mean, when you open up your refrigerator, you find one rotten thing, chances are there's more than one rotten thing in your refrigerator," said one community member.
Watch previous coverage: Audit finds Hot Springs School District employee paid themself over $13,000 from school funds
DePoe stated that the board only looked into one year due to costs and lack of prior knowledge.
"The decision to look into only one year is based on the fact that they did not know if there was a widespread financial impropriety of limited error in judgment. Before the district incurred the substantial cost of a forensic audit, we wanted to know what we're dealing with."
Community members also questioned why the annual audit of the school, which costs roughly $20,000, didn't find the inconsistencies with the employee.
"If an audit does not catch that an employee is spending thousands of dollars a month on a credit card for their own personal expenses, if an audit does not catch that that employee is then taking their own money and depositing it into the school account, supposedly, that audit is not worth $20,000," said one community member.
Flynn responded that the annual audit still fulfills a need for the school.
"The audit is really effective in doing other things than catching blatant activity. The audit is really effective at retraining personnel. If they're not doing two-person counts, the auditor's going to say, hey, you need to do this. And it really helps us be sharper and better. So in that way, this audit has value."
The board will now write a formal referral to law enforcement under the advisement of the school district's legal counsel.
