State Auditor investigating Solen Public School District for fraud
State Auditor Josh Gallion’s office is investigating the Solen Public School District for possible fraud and other illegal activities from 2016 to 2018.
The Auditor’s Office is enacting a rarely used section of North Dakota law allowing them to take over the audits from a private firm, which had been conducting the audits.
In a letter sent to the district dated May 2, Gallion says his office notes show “there may have been illegal actions on the part of the employees of the Solen Public School District. In the 2017 audit report, Brady Martz (the auditing firm used by the district) reported the school district failed to remit approximately $2.3 million to the Internal Revenue Service for employee and employer payroll taxes and employee federal withholding for the time periods January 1, 2013 through December 31, 2017.”
Gallion says they’re investigating a state bonding fund claim, which is submitted to the state insurance commission by the affected government entity if potential fraud or theft exists.
KFYR-TV Reached our to the Solen public schools for a comment. Justin Fryer, the superintendent, says they are cooperating fully with state and federal entities and it is an ongoing investigation. Fryer added there’s no timeframe for when the investigation will be complete.
According to letter from the State Auditor's Office to the Solen School District, an independent auditing firm found "objectionable accounting procedures" from 2013-2017. This story is a developing story and we'll have more information as it becomes available.
