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An Update From the HSA
Members of the Lafayette Community,
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We are writing with an important update on the improper personal spending of HSA funds uncovered in August. Yesterday, the HSA deposited two checks from our former treasurer that we believe make us financially whole.
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As we wrote to you at the end of August, the former treasurer has acknowledged misusing HSA funds for personal use and at that time had reimbursed the HSA $29,535.22. In the subsequent weeks, a more complete review of our financials uncovered another $12,044.23 in suspected fraudulent spending. One of the two checks deposited from the former treasurer reimbursed the HSA for that full amount.
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The second check from the former treasurer was for $12,800 to reimburse all attorney and accountant fees the HSA incurred as a result of this matter.
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The internal investigation, conducted together with our independent accountant, has now concluded and to the best of our knowledge these payments cover the fraudulent activity that took place. However, if any further misappropriated funds are discovered in the future, we would seek to recover those as well.
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As we also told you back in August, a report over the stolen funds was filed with the Metropolitan Police Department, which continues to investigate. We will let you know when we hear of any conclusion to their inquiry. The board informed the authorities of the recovered funds and communicated our willingness to cooperate with their investigation in a letter stating:
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“While we have been made financially whole, we believe it is important to recognize the severity of the violation against our elementary school community. Our former treasurer stole confunds raised by parents and intended for such charitable purposes as purchasing school supplies, hiring instructors and providing enrichment for DCPS elementary school students. As parents and community members, we believe it is important to address such significant theft to help ensure it does not occur again or elsewhere. As such, we wish to inform the authorities we are willing to cooperate with any legal action that you deem fit to take. We appreciate the efforts you have taken thus far and will continue to participate fully with any investigation.”
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Finally, we want to assure you we are meeting all the financial commitments under our budget, while operating under a new set of financial controls as we outlined in our Aug. 19 letter. We also are working on other new procedures for fundraising and finances and invite you to hear an update at our next general meeting, Nov. 2 at 7 p.m.
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Thank you again for your support, The HSA Board
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