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Monroe schools allege Thorpe misspent funds, helped bring on deficit

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By Denise Wilson, Staff Writer Updated 12:06 AM Tuesday, December 13, 2011

MIDDLETOWN — Middletown school board members said they’re confident in Kelley Thorpe’s abilities as the district’s treasurer even though leaders in the Monroe schools allege she misspent funds without authority and led to its current $2 million plus deficit.

Thorpe was named district treasurer of Monroe Local Schools in June 2007 before joining Middletown Schools in August.

Board Member Greg Tyus said he has “every confidence in the world in Kelley.”

“Whatever happened at Monroe, happened at Monroe. They’re (Monroe School Board) going to have checks and balances that they need to have. I feel like we do have the checks and balances that are needed. I have no concerns whatsoever.”

The Ohio Department of Education placed Monroe on fiscal caution Oct. 1, and since then, the district confirmed it has a projected $2.7 million deficit by June 30.

The new board scheduled to take office in January is expected to finalize action to approve $2.2 million in reductions for the 2012-13 school year to address the deficit.

Monroe’s financial problems trace back to 2005, when money from the Bond Retirement Fund — set aside solely to pay off bond debt incurred when the new educational building was constructed ($29 million) — and was starting to be used for other expenses by then-treasurer Sharron Moon.

Another $1.3 million was allegedly misspent by Thorpe, from February to May this year, when Superintendent Elizabeth Lolli said she used money from the fund for operating expenses, without the board’s authority or knowledge.

Thorpe declined to comment.

Marcia Andrew, president of the Middletown board, said she too is confident in Thorpe, but added the board is watching the situation at Monroe schools closely.

“I have yet to see a report that really details exactly what went wrong at Monroe and whose fault that was if any ones. We’re watching Mrs. Thorpe closely as we would any new treasurer. She has not done anything at Middletown to cause concern. She’s right away been an contributing member of the team and come in learning our budget and coming up with ideas on ways to save even more money,” she said.

“Trust, but verify, is kind of the situation we’re in. We wouldn’t let her handle our money if we didn’t trust her.”

Board Member Chris Fiora agreed.

“Absolutely, I do,” he said.

“We have yet to receive any specific information regarding what may or may not have been done. Frankly, I think it’s terribly unfair to accuse someone of something that has not yet been proven.”

Lolli declined further comment about allegations regarding Thorpe.

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