GHAPS Board of Education Votes to Release Forensic Audit
At Monday's meeting, the Grand Haven Area Public Schools Board of Education voted to waive its attorney-client privilege regarding the full forensic audit conducted in the wake of former Assistant Superintendent Brian Wheeler’s alleged embezzlement and release that full report.
“We’re listening to our community, and they’re telling us that they need more transparency from us,” says GHAPS Board of Education President Christine Baker. “Though we released a summary of the report a year ago, we hope that sharing Plante Moran’s full report will bring closure and demonstrate our commitment to rebuilding the community’s trust and confidence.”
The investigative report did not find any evidence indicating that Wheeler colluded with other district employees, or that anyone on the board of education or staff was aware of the embezzlement. The report confirmed that Wheeler’s scheme involved creating false invoices totaling $944,410.00 to a company called Infinity Electrical, LLC from 2014 to 2021. The report also provided evidence that Wheeler likely embezzled an additional $150,521.66 through a similar scheme using payments to an entity known as Business Office System Support. The full report is available here (URL TBD).
Plante Moran is one of the nation’s largest audit, tax and consulting firms. Their independent experts examined GHAPS’ internal operations, controls and staff actions. The investigation could not extend to personal accounts, nor answer questions about why Wheeler embezzled from the district or what happened to the stolen funds. Prior annual audits, conducted by other accounting firms, showed no irregularities. GHAPS changed auditing firms in fiscal year 2021.
Since receiving the forensic audit report last June, GHAPS has instituted additional controls and process to safeguard financial operations, including stronger vendor verification methods, more robust requirements for contracts and purchase orders, increased employee cross-training, and more consistent documentation. In addition, leadership is using the heightened sense of staff awareness to emphasize the importance of internal vigilance.
“We are stewards of the funds provided by taxpayers,” says GHAPS Superintendent Scott Grimes. “Our community trusts us to use those funds for the essential task of educating our students, and we know we must prioritize that responsibility at all times. Everyone involved in our financial operations is using the results of the forensic audit to improve our processes. We can’t change the past, but we can work to keep it from happening again.”
Wheeler’s embezzlement scheme was initially detected by the district’s business manager, who noted some irregularities during an internal review on November 4, 2021. She expressed her concerns to then-Superintendent Andrew Ingall, who immediately placed Wheeler on administrative leave, began an internal investigation, and reported the matter to law enforcement. After Wheeler failed to appear at multiple investigatory interviews, the district terminated his employment on November 22. He was arrested on November 23 and charged with one count of embezzlement over $100,000 and one count of committing a crime with a computer. On January 27, 2022, Wheeler passed away while in custody.
GHAPS has been working diligently to recover as many of the lost funds as possible. The district’s insurance policy covers up to $300,000 for criminal acts of its employees, and GHAPS is pursuing litigation in Ottawa County Probate Court against Wheeler’s estate.
Grand Haven Area Public Schools is a district of distinction for students in preschool through 12th grade. With a goal of providing exceptional educational experiences, GHAPS is committed to success for all students and strives to provide exemplary programs and opportunities to meet their diverse needs. Visit ghaps.org for additional information.