School district puts up safeguards to prevent another theft

CEDAR RAPIDS - Thousands of dollars were embezzled over two years from the Cedar Rapids school district by an employee, who was arrested and charged but the district will never recover anything from her.

Jamie May, 42, of Cedar Rapids, a former accounts receivable clerk, was charged in August with first-degree theft and accused of embezzling more than $200,000 from the district in 2008 and 2009. She died Nov. 1 of cardiac arrhythmia after battling breast cancer.

The district will recover the loss through insurance and this week as part of a restructuring plan in the accounting department hired an internal auditor to prevent another theft.

Marcia Hughes, district spokesperson, said the new position is designed to strengthen internal controls and provide safeguards. The district also will add an accounting supervisor, she said.

Deb Schott, of Atkins, a certified internal auditor and CPA, will start as an internal auditor for the district starting Feb. 5. Schott previously worked for Mercy Medical Center, Rockwell Collins and the University of Iowa.

Steve Graham, executive director of business services for the district, said he couldn't confirm the amount stolen from the district until the state auditor's report is completed.

Tami Kusian, state deputy auditor in the performance investigation division, said her office is conducting an independent investigation of the theft and estimates its completion some time in February.

Graham said the loss will be covered by insurance. The district has coverage of $500,000.

Cedar Rapids Sgt. Joe Clark said there's not an exact dollar amount but according to information from the investigation about $225,000 showed up in May's bank account over the two year period and she made $27,958 a year. May, as an accounts receivable clerk, had access to large amounts of money, he said.

The investigation started after a confidential source contacted the U.S. Attorney's Office about suspicious activity in the school district's accounting department, Clark said. The U.S. Attorney's then contacted the police department.

The Linn County Attorney's office dismissed the charge because May died Nov. 1, Assistant Linn County Attorney Jason Bessler said.

“This was an unusual case where someone died (before going to court) - it may have happened before but it doesn't happen a lot,” Bessler said. “I don't remember of another.”

The attorney's office didn't find out May had died until a few weeks after the fact, Bessler said.

“As you know these were allegations and nothing had yet been proven against Ms. May prior to her death,” Bessler said. “Given her death we were forced to dismiss this matter, so in a criminal law context she is considered innocent of these charges.”

Clark said May was in the advanced stages of breast cancer according to information in the police investigation and the detective on the case said May's death was never considered suspicious.