SAN ANTONIO – A recent audit of the North East Independent School District (NEISD) has revealed some serious financial missteps, including a $549 lunch at an upscale steakhouse that left a high school account in the red and a booster club with years of unpaid taxes. These findings have raised concerns about the district’s financial management as it grapples with a significant general fund deficit of around $19 million.
The audits, which were shared with NEISD’s Board of Trustees earlier this year, highlighted various issues. Among these were a parent-run booster club that spent more than double its proposed budget, missing financial documentation, delays in depositing collected funds, and thousands of dollars spent on food and drinks that exceeded district spending limits.
During an August board meeting, district trustees received an update from NEISD’s internal audit department, but many details of the audits were not discussed publicly. Interestingly, district officials have chosen not to release an audit concerning Johnson High School’s former band director, seeking permission from the Texas Attorney General to withhold those records.
$549 steakhouse lunch puts school account in the red
One particularly shocking revelation came from an audit of MacArthur High School, where it was discovered that a culinary arts field trip to Ruth’s Chris Steak House resulted in a staggering lunch bill of $549.48 for just four students and their teacher. The audit revealed that the meal included high-end entrees such as lamb chops and filet mignon.
Unfortunately, the culinary arts account did not have sufficient funds to cover this expense, leading to a negative balance due to a lack of fundraising. In response, the teacher involved has since reimbursed the cost of the meal. NEISD’s Executive Director of Communications, Aubrey Chancellor, commented, “They spent hours at the restaurant. They were looking at food preparation in the back. Operations in the front. The difference here is that a meal was had and that shouldn’t have taken place.”
A first-year culinary arts teacher at MacArthur High School was forced to pay back the cost of an expensive field trip lunch at Ruth’s Chris Steak House. (KSAT)
Unfortunately, the steakhouse lunch wasn’t the only issue at MacArthur High School. Auditors found that funds collected at the school sometimes went weeks without being deposited. Moreover, 87% of the fundraisers reviewed had compliance issues, including missing documentation showing that the activities had received prior approval.
Madison High School booster club owed four years of back taxes
At Madison High School, an audit of the school’s Future Farmers of America (FFA) booster club uncovered significant financial discrepancies, including missing records and four years of unpaid sales taxes. This review was initiated after a complaint was filed by a parent and a request from the director of Madison’s Agriscience Magnet Program.
However, auditors faced challenges in completing the audit. The booster club’s former treasurer refused to provide financial documentation from the previous year, delaying the audit by more than two months.
