UPDATE: Auditor releases follow-up on IRSD special investigation

The Delaware State Auditor has released a follow-up report on the Indian River School District after an earlier audit revealed district money had been used to make big purchases.

The latest report reveals where the district may have gone wrong but also where officials have made progress.

"We wanted our house in order. This is proof we've got it in order," says interim superintendent Mark Steele.

The nine page report released Monday is a follow-up to the findings of a special investigation into Indian River School District's finances, which were first made public in November 2016.

"Frankly, I think they've worked faster than any of us anticipated that they could have so we give them great credence for that," says Delaware state auditor Tom Wagner.

Wagner says a four year audit and special investigation revealed big purchases were allegedly made with the school district's money. Some of those expenditures were found to be inappropriate, such as a 7,000 dollar splurge for an awards ceremony.

The follow-up report released on Monday goes beyond inappropriate spending, taking a look at where the district could have gone wrong and what they have done since November to fix the problems.

According to report, there was little oversight over the Chief Financial Officer position; however, it appears the Auditor of Accounts has found evidence there is now more accountability overall.

Steele tells 47ABC some of the biggest changes were made through procedures and policies at the central office.

"We had our Business Director go through the Board Of Education, the process about how everything works from the submittal of a voucher to the complete approval before it's set up for actual payment. Those sort of issues," explains Steele.

Steele says those changes will not stop there.

Three days before the district is set to hold a referendum vote, he explained how he'd like to see additional layers of oversight including a committee consisting of community members tasked with overseeing finances.

"If this person doesn't find it, this one is. If this doesn't, this one's going to find it," he says. "If we put together these layers, that's the best thing we can do, I think, that provide the oversight that can guarantee to folks it's never going to happen again."

As for the district's current and future finances, Wagner says his office is confident.

"We'll certainly look a little deeper at Indian River certainly within the next year or two but again, I think within the office we've got a confidence level that they are on the right track," he says.

In light of this report, Steele says he feels confident going into the referendum set for Thursday.

The district has proposed a tax increase of 49 cents per 100 dollars of assessed property value, meaning the average district taxpayer could see an property tax increase of about 95 dollars. If passed, the measure is expected to raise more than seven million dollars in local revenue.

The majority of that would go toward the support of enrollment growth and staff.

Even if it doesn't pass, Steele says he hopes the community will still be supportive of the school district moving forward.

"This doesn't affect friendships. this doesn't affect personal relationships. We want to make sure people in our community get along and get along for the sake of what's important. If we want a strong community, we need a strong educational system," he says.

The referendum vote will take place between 10 a.m. and 8 p.m. on Thursday.