Audit: Academy of Dover charter principal abused funds

The former principal at the Academy of Dover charter school, Noel Rodriguez, used school money to make $127,866 in personal purchases, reimburse employees for buying alcohol and other barred items, pay legal fees for a sexual harassment lawsuit and give arbitrary bonuses to teachers, a report by State Auditor Tom Wagner's office says.

In addition to those abuses, the audit found $129,458 that could not be proved as either school or personal purchases.

"It is likely that these practices go back further than our investigation," a news release from Wagner's office said. "However, the older the occurrence, the more time it takes to investigate and the more unlikely we are to get answers about exactly what was purchased."

The audit excoriates Rodriguez, who left the school in September 2014 at the school board's request. It said some school staff called him a "bully" and a "manipulator" and compared him to "Dr. Jekyll and Mr. Hyde."

In addition to opening a State of Delaware Procurement Card, sometimes called a "PCard," the audit says Rodriguez opened school credit cards at Home Depot, Lowes, Sam's Club and Staples.

The alleged personal purchases include almost $39,500 in electronics, $11,433 at restaurants, $7,287 in household items and $8,854 in tools.

The audit says school staff described Rodriguez as a "Christmas fanatic" and said he bought more than $2,000 in Christmas decor.

The Auditor's Office says it found pictures in which Rodriguez was showing figurines and decorative items purchased with school money.

"Displaying such items at the school demonstrates a flagrant disregard for the trust invested in his position and sets a culture ripe for abuse," the audit says.

Once Rodriguez caught wind of the investigation, he returned some items purchased with school money to the school, including a generator, car jack, washer, dryer and lawn mower.

According to the audit, Academy of Dover incurred legal fees of $36,137, including a $2,500 settlement cost, when a former employee sued, alleging she was fired for rejecting Rodriguez' sexual advances.

Rodriguez broke the rules in several ways when reimbursing employees, the audit found.

He did not always get itemized receipts, approved hotel and mileage reimbursements that exceeded the allowed amounts and reimbursed employees for almost $80 worth of alcoholic beverages, which state law doesn't allow.

The audit also says Rodriguez granted raises to staff without any documented justification. In one case, an employee got a $6,320 raise – about a 20 percent increase – while other employees were recommended for one or two percent raises.

Rodriguez himself got a one percent raise each year without any "basis or support," the audit says. He also got a $21,957 raise in a new contract in July 2014, putting his salary at $120,000.

"AOD's misuse of school funds occurred for more than three fiscal years without action from any oversight body and no mention of any issues by the CPA firm contracted by AOD to perform the financial statement and single audits," the report said

The auditor's office says the school's board of directors allowed the abuse to go on because it was poorly-trained and too cozy with Rodriguez and thus did little to hold him accountable.

"The board was led astray by the former principal and the board did not verify information he provided," the report said.

Wagner's report puts a fine point on a decision the Department of Education and State Board of Education made last week to place Academy of Dover on probation.

Academy of Dover was placed on formal review because of concerns about its financial management. State officials could have chosen to close the school, but instead placed it on probation.

That means the school must take action to put in stronger financial controls, train its board better and prove the purchases and lawsuits have don't threaten its financial viability. If state regulators aren't convinced the school has put its financial house in order, they could close it.

This is not the first time a charter school leader has been accused of such financial abuse.

The co-leaders of Family Foundations Academy were fired after accusations they made $94,000 in personal purchases.

These issues caused state Rep. Kim Williams to file legislation that would have the State Auditor's office oversee the firms that audit charters, as is the case for traditional public schools.

Currently, charters select their own outside auditors and set the contracts with them. Charter supporters oppose Williams' bill

Contact Matthew Albright at malbright@delawareonline.com, 324-2428 or on Twitter @TNJ_malbright.

Personal purchases

Below are some of the personal purchases former Academy of Dover principal Noel Rodriguez made with school money, according to a report from the State Auditor's office.

• Electronics, including a $499 treadmill, a camera lens bundle worth $1,049, a $400 PlayStation 4 video game console, various laptops including one costing $1,750, and televisions including a 55' TV worth $730.

• Restaurant bills totaling $11,433.

• Tools worth $8,854, including a garbage disposal, generators, drill sets, a gas engine pump and a chainsaw.

• A total of $7,288 in household items like a washer and dryer, several vacuum cleaners, bath towels and an air conditioner.

• High-end office supplies worth $4,098, including monogrammed pens, figurines and leather briefcases .

• Home improvement supplies totaling $3,113, including weed trimmers, a lawn mower, light fixtures and a ceiling fan.