MUNCIE — A forensic audit of financially recovering Muncie Community Schools has found no public corruption but shows that school district officials intentionally used restricted bond funds to cover operating deficits.
"MCS notes that the report does not find any instance of monies being received by MCS and not used to pay MCS expenses," school district attorney David Day said in a written response attached to the audit report.
"In other words, there does not appear to be any misappropriation of funds and no circumstances of misfeasance by any MCS board member or employee. The SBOA is making no requests for reimbursement of funds by any person and there is no referral of any matters to the Indiana Attorney General or the local prosecuting attorney."
The Star Press obtained a copy of the audit report — to be posted on the State Board of Accounts' (SBOA) website later this week — through a public records request.