- BERNIE EBBERS

WorldCom CEO, serving a 25-year prison term for fraud and conspiracy in the largest accounting scandal in U.S. history

Sometimes trusting your fellow man is a mistake. Davis School District found that out when it apparently was bilked out of at least $4.3 million. Three district employees have been indicted for fraud and embezzlement in that case.

A Legislative Auditor General's performance audit of other Utah school districts found that the "weaknesses" in the Davis control system have been corrected and other districts aren't vulnerable to the same type of fraud since they have adequate controls in place.

That is comforting, as far as it goes. But the audit also showed that some district foundations, organizations that raise money to supplement state funding for school programs and materials, are not being watched adequately by the school districts they are meant to help.

The Weber School District Foundation was the victim of an embezzlement scheme and lost more than $1 million because no one was overseeing how donation checks were recorded and deposited.

Such sloppy accounting procedures must be corrected. There is no excuse for such negligence when money that is meant for schoolchildren is involved.

The audit suggests that every school in a district receive regular reports so that principals are aware of donations and how much foundation money should be in the school's account at all times. That seems to make good sense.

The audit also found that several schools in Granite and Jordan districts had no idea of how much money had been donated or how to monitor their account activity. That only invites unscrupulous employees to dip into the till while backs are turned.

The auditors suggest better "oversight and guidance," not only of state funds and donations but of federal Title I funds, some of which were lost in the Davis District fleecing.

The report sounds a low-key alarm and offers common-sense remedies that school districts should immediately adopt. Utah's underfunded schools need every dime they are due. Only proper accounting procedures will ensure delivery.