Page Unified School District No. 8—Theft and Misuse of Public Monies (December 2008)
SUMMARY
In September 2005, the Office of the Auditor General reviewed a fiscal year 2004 Page Unified School District (District) audit report from a public accounting firm alleging financial misconduct by the former District Superintendent, Greg Conway. After requesting and receiving relevant documentation from the District in January 2006, our Office commenced an investigation into those alleged financial improprieties. During our investigation, we determined that Mr. Conway embezzled and misused public money, failed to abide by conflict-of-interest laws, and manipulated public documents in order to conceal his crimes. As a result, we submitted our report to the Attorney General’s Office, and they have taken criminal action against Mr. Conway (see the Conclusion on page 17 of this report).
Our investigation revealed that from October 2002 through June 2005, the former Superintendent misappropriated a total of $172,501. Specifically, Mr. Conway embezzled $17,216 for his personal use, violated conflict-of-interest laws regarding payments totaling $87,520 for his wife’s employment, and directed unauthorized payments to district staff members totaling $67,765. Finally, Mr. Conway attempted to conceal his misconduct and embezzlement schemes by manipulating records within the Governing Board (Board) meeting files.
Mr. Conway embezzled and misused public money by abusing his authority as Superintendent and circumventing internal controls governing the disbursement of district money. Specifically, he directed subordinates to make improper payments, provided false documentation, and withheld relevant information from Governing Board members. While no control system can be expected to totally prevent dishonest actions such as Mr. Conway’s, there are actions the Board could have taken and can take now to help deter future instances of misconduct such as those that Mr. Conway perpetrated.
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