Auditors believe Marble City School Superintendent Larry Couch used an outside bank account that should have been closed 10 years ago as the tool to conceal deposits and expenditures of school funds totaling $948,202.35, according to the audit.
Couch, 55, of Vian was charged in August in state court with embezzlement of public funds in connection with using $100,000 in school money for a personal land deal. The embezzlement charge ultimately led to the revocation of Couch's credentials, which Couch has since appealed.
Couch has been employed with the school district for more than 25 years and for more than 15 years as the superintendent.
The charge against Couch came after a board member, Ramon Bolin, questioned school expenditures in May 2007. Bolin took his concerns to Sequoyah County Treasurer Trica Yates who conducted her own inquiry, which led to the discovery of the missing school funds.
Those questions were then taken to Sequoyah County District Attorney Jerry Moore's office, who asked the State Auditor and Inspector's Office to conduct an investigative audit of school records.
In June, a search warrant was served at the school for financial documents and records, and the examination of nearly a decade of school records began.
The findings of the 49-page audit were released to the public Friday, along with an audit summary that details years of alleged abuse of school funds.
According to a press release issued by the auditor's office, money intended for a variety of school programs, including Head Start, obesity and Native American language programs, and even money for air conditioners at the school was allegedly misused.
"...The details of an audit performed with the combined efforts of the Oklahoma State Auditor & Inspector's Office and Sequoyah County District Attorney and his investigators show the money being deposited into a bank account used by former Marble City School Superintendent Larry Couch for his personal benefit," according to the press release.
The auditor's office praised Bolin and Yates for coming forward to Moore when they identified a questionable land transaction, which sparked the audit.
After Couch allegedly admitted to investigators that he stole $100,000 from the school for the land transaction, Moore requested the auditors and investigators dig into school transactions from March 1998 through November 2007.
"In a word, what they uncovered is astounding. School funds diverted by Couch to his personal benefit are in the hundreds of thousands of dollars," Acting State Auditor Michelle Day said.
"I commend the work of the State Auditor's Office. They were completely professional and thorough as we worked through what has been a difficult time in our community," Moore said. "I am currently working with federal authorities to determine what additional charges should be filed in this matter.
According to the audit summary, auditors found a bevy of financial inconsistencies and alleged wrongdoings, including that Couch allegedly used funds diverted from the school to an outside bank account to pay over $640,000 in personal credit card debt, among other things.
For more information, including reaction from Bolin, pick up the Sunday edition of Your TIMES on news stands Friday evening. To view the audit report, click on the link on Your TIMES home page.
