The state auditor’s office released a finding July 3 outlining a loss of public funds from the Community Activities Program operated by the White River School District.

The district business manager reported the issue to the auditor’s office in February.

The report stated the program assistant received $9,473 in services and collected $10,747 in Kids Clubs payments that was not deposited with the school district.

The Pierce County Sheriff’s Department is investigating the allegation and auditor will refer its report to the Pierce County Prosecutor.

According to the auditor’s report, the services were for the assistant’s two children in the Kids Club program from September 2010 to January 2014.

According to the report the assistant, “received $12,449 in services and paid only $2,976.”

The district found “$10,747 in cash payments that were recorded in the bookkeeping program but were not recorded in the District’s receipting system or deposited with the District from September 2010 through February of 2014.”

The report stated the assistant was interviewed by the auditor in April and he, “acknowledged he did not pay for the services and he received the payments but did not receipt them into the District’s receipting system or deposit them to the District’s bank account.”

The report noted, “Internal controls at the District were not adequate to safeguard public resources.”

The auditor recommended strengthening internal controls in the program.

The district response in the reported stated, “The District would also like to recognize the efforts of the new Community Activities coordinator for identifying and strengthening processes within the department and restoring controls.”