Audit Reveals Problems at East High

MEMPHIS, Tenn. - An audit of East High School, ordered by Superintendent Kriner Cash months ago, reveals money mismanagement and an "apparent lack of internal controls," resulting in the principal being terminated.

The audit review of East High School took place from September 1, 2009 through April 21, 2010. Then, on May 25, the superintendent sent the findings to the board of commissioners. Now, the school is under new leadership for the upcoming academic year, and even more changes are on the way.

Superintendent Kriner Cash replaced East High School Principal Fred Curry after an internal audit revealed "there was an apparent lack of internal controls in place."

Curry was suspended back in May with pay after several violent incidents, including several fights requiring police to be called to the campus, and an alleged rape.

In a statement, Cash wrote "during the course of the 2009-2010 school year, there were a number of disconcerting events that occurred at or near East High School." As a result, he requested a comprehensive audit. Released to FOX13 on Wednesday, we learn more about what was going on at the trouble Memphis City School.

One reoccurring issue mentioned throughout the document was money mismanagement, citing that the school's bank reconciliations were not prepared in a timely manner as one example. In part, the audit reads, "the school's financial position is questionable." Curry blamed a change in accounting systems for falling behind, but says "there is no excuse for me not performing the duties as charged."

The money problems didn't stop there. The teacher courtesy account was overdrawn by $1200. Add to that, teachers were reported as not submitting money collected from students on a timely basis, resulting in "a greater chance of the funds being lost or stolen." Plus, there was almost $570 missing from a fundraising project for the school's majorettes.

The audit also details inventory issues, reading "the accountability and check out system maintained in the school... is inadequate." 598 laptops were missing or unaccounted for from September 2007 through April of this year. The school did not follow procedures for reporting losses, the document also reads.

In a statement, Cash said "I will continue to hold all staff to the highest standards in educating our system."

Cash has ordered changes for the upcoming administration and school year:
Chief of Security will conduct a security and safety assessment of the campus
Additional hall monitors and one MCS security officer
Additional support will be provided to help the new leadership

All policies will be revisited with staff, and all property will be re-inventoried.

Curry has been replaced by Eric Harris, formerly the assistant principal at White Station High School. School board commissioner Dr. Jeff Warren, who oversees the district where East High School sits, says East High School "has been one of the toughest high schools that we've had to deal with because of the difficult high school population." He goes on to say "I think Mr. Curry did a good job at making it better. I'm hoping he can find another place in the system because I think he's a good guy."

Commissioner Warren also said Principal Curry fell ill last year, requiring bypass surgery that removed him from the school for some time. He believes the problems started at East High School while he was out recuperating. As for his replacement, Eric Harris, Warren is confident this is a good man for the job.