Almost $365K misappropriated from Dunedin high school over five years, no charges sought

A Dunedin high school from which nearly $365,000 was misappropriated says the matter has been resolved, and it chose not to pursue criminal charges.

The Logan Park High School board of trustees confirmed that a total of $364,884 in school funds was misappropriated between 2019 and 2024. An email to parents assured them that the full amount, including legal and accounting costs, had been recovered.

In the email, the board said that the issue had come to light last year through one of its external professional providers.

“It’s important to note that this matter has now been fully resolved, and we want to share the outcome with our whānau to reassure you that, moving forward, our systems and processes are robust.”

According to the board, the misappropriation spanned five financial years.

Nearly $365,000 was misappropriated from Logan Park High School in Dunedin. Photo / RNZ

The $364,884 figure (GST inclusive) is documented in the school’s 2023 full annual report.

The incident prompted a thorough internal review and a host of changes to internal systems, the board said.

“We understand this news may come as a surprise. We would like to assure the community that all misappropriated funds, along with associated legal and accounting costs, have now been fully recovered and have been included in our updated audited financial statements, in consultation with the Office of the Auditor-General.”

In response to a Herald inquiry, the board said it had received legal advice recommending a civil, employment-based approach to the matter, rather than pursuing criminal charges.

“As our priority was to recover the funds in full and as quickly as possible, while ensuring the matter was handled appropriately, the legal advice to us was that this was best pursued through a civil employment route.”

The individual responsible for the financial misconduct has not been named but is no longer employed by the school.

“It was an isolated incident involving one individual. They are no longer employed by the school.”

The board said its actions had been guided by four key goals: following professional advice, understanding how the misappropriation occurred, recovering funds swiftly, and maintaining transparency with auditors.

“A thorough review was conducted to understand the nature of the misappropriation. As a result, changes were immediately made in the school’s financial processes and practices to improve internal controls and oversight,” the email to parents said.

These changes, implemented in 2024, include third-party professional support and revised internal policies aimed at preventing similar incidents in the future.

“We have fully co-operated with the audit process throughout and remain committed to upholding the highest standards of integrity in our school’s financial management.

“The school has remained in a stable and secure financial position throughout this period.”

The school thanked staff for their help in resolving the matter.

Andrea Williams, the Ministry of Education’s acting hautū (leader) Te Tai Runga (South), said the ministry was aware of the matter and would be working with the school to better understand the processes followed.

“The school worked with the Office of the Auditor-General,” she said.

Ben Tomsett is a multimedia journalist for the New Zealand Herald, based in Dunedin.