Former employee awaits sentencing for theft at Federal Way school

A former Federal Way Public Schools employee is scheduled to be sentenced in January after pleading guilty to stealing from a middle school’s Associated Student Body fund.

Shirley Ann King, 57, pleaded guilty in September to theft that occurred over a four-year period, according to a state audit report.

King County Superior Court and state auditor’s records give this account:

King was the financial secretary responsible for issuing receipts and keeping track of cash generated by ASB activities at Kilo Middle School, including fundraising, gate fees at events and student club activities.

She received the money from two ASB faculty advisers, issued receipts for the cash, entered the amounts into school records and then handed off the money to a district courier, who deposited the funds into a school bank account.

The faculty advisers also kept a spreadsheet where they recorded daily cash totals before submitting the money to the school office.

When the advisers noticed that their records differed from the bank balance, they reported the discrepancy to school officials.

The school district investigated, and found that a portion of the funds submitted were not deposited or entered into school records. In addition, the district discovered that some forms used in the transactions appeared to have been altered. The district reported its findings both to the state auditor and to the King County Sheriff’s office.

Cash collected, but not deposited, between 2010 and 2014 totaled $17,842.

King was arrested in March of this year, and charges were filed in King County in May.

The state auditor’s office issued a report Dec. 8 noted weaknesses in the school’s internal accounting practices, including the practice of allowing a single employee to control records for both receipts and deposits without adequate oversight.

The school district transferred money from its general fund to the Kilo ASB account to make up for the loss, and the district also plans to seek restitution of the funds, the auditor’s report stated.

School district spokeswoman Kassie Swenson said in an email that the district provides formal training on cash-handling procedures on an ongoing basis. In the auditor’s report, the district said it has placed additional emphasis on properly completing fundraising reconciliation forms and performing random audits.

King’s attorney could not be reached for comment.

This story was originally published December 12, 2016 at 4:36 PM with the headline "Former employee awaits sentencing for theft at Federal Way school."