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Delphi confirms superintendent placed on paid administrative leave while they investigate financial issues

The corporation is currently investigating the financial state of the school district.

Posted: Aug 27, 2019 12:21 AM

DELPHI, Ind. (WLFI) — Delphi school corporation superintendent Greg Briles' paid administrative leave is linked to an investigation.

The school board confirmed it on Monday at its second special session board meeting this month. The first one was held on Monday, Aug. 19, when they voted to put Briles on administrative leave.

The corporation is currently investigating the financial state of the school district. Board members are trying to find information on payments made between early July up until Briles' paid administrative leave on Aug. 19.

According to financial advisor Ed Eiler, July, and August funds are unaccounted for. He's been helping the school figure out its financial standing since the former treasurer quit early last month.

Eiler said he found the school switched accounting systems in early July. With the new system, he hasn't been able to find information on any financial decisions made in July or August.

Delphi school district attorney, Nicholas Otis said Briles was in charge of overseeing the schools finances while they were without a treasurer.

Otis said they aren't accusing Briles of anything but instead trying to figure out the school's finances during that time.

“It is just more of a cash flow issue and there have been no allegations of misappropriation of funds,” said Otis. “I think the board wants everybody to understand that but it is still working to get to the bottom of understanding this issue.”

Otis said the school district taking out loans is common. As we’ve reported the school board was approved to take out a $1.5 million emergency loan.

“The superintendent prior to Mr. Briles frequently used General Obligation bonds or tax anticipation warrants to fund short term cash flow issues and had that happened in this circumstance back in May or June, I don’t think we’d be here tonight,” said Otis. “I don’t think anyone would have batted an eye at that kind of borrowing.”

Eiler advised the school board to take out the emergency loan. He said the district's cash position is "considerably worse" than last year. He said financially the school might be able to just get through September. The need for an emergency loan is what has prompted the investigation.

“When the board found out that it needed an emergency loan in order to cover cash flow until the next tax draw, the board wanted to find out why that happened so that’s what brought on placing the superintendent on paid administrative leave,” said Otis. “Delphi is a smaller school corporation, and unlike bigger school corporations like Lafayette for example that probably have a chief financial officer, paid similarly to a superintendent, most of that responsibility falls with the superintendent so that is why where we are today.”

On Monday, the school district welcomed interim superintendent Dan Ronk, who once served as Carroll County's Junior-Senior High School Principal. His contract lasts up to June of 2020.

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