An Ector County Independent School District investigation into an activity fund at Barbara Jordan Elementary showed a series of spending imbalances by former principal Jan Brown.

According to a July 2010 audit report by ECISD internal auditor Sherrill Watson, which audited a period between September 2009 and May 2010, the school’s general ledger had three accounts with negative balances as of May 31, 2010. A reimbursement account had a deficit balance of $5,662.46, a teachers’ lounge account overspent $2,878.43 and a cash imprest account had a negative $500 balance, the report stated.

Watson wrote that other accounts in the school’s activity funds “cover” the deficit of the overdrawn accounts, but that funds in those accounts should be available for the purposes for which they are raised.

Watson’s report also found that several reimbursement forms didn’t have itemized invoices attached. In two cases, the invoices reviewed were for different amounts of money than were listed on the check. In those cases, the vendor was contacted, and they said the invoices were not from them, and the items listed were not sold by them.

It was those invoices, which claimed purchases were made from Raise Your Hand Texas and the Harvard Leadership Conference, which led to Brown being charged with a Class B misdemeanor for making a false report to a peace officer during Texas Ranger Brian Burney’s investigation.

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Brown was investigated by the Texas Rangers relating to discrepancies with the school’s activity fund. She submitted her retirement Feb. 14 effective April 30 citing a family member’s illness after being placed on paid administrative leave Jan. 14.

ECISD auditors discovered a discrepancy in Jordan’s activity fund, which goes toward projects like field trips and class graduations. The case was referred to external auditors who recommended it be brought to the Texas Rangers, who began investigating it Dec. 3.

The audit report also questioned Brown purchasing from a relative, her son Tyler Penn, and making the purchases in cash so they didn’t go through the regular purchase order system.

“Purchases from a school district employee’s relative gives the appearance of a conflict of interest,” Watson wrote. “Payments made by cash cannot be verified and do not provide a proper audit trail.”

In her written response to the internal audit report, Brown pointed the finger at her then secretary, Denise Hull. She accused Hull of putting together the inaccurate invoices for the Raise Your Hand Texas and Harvard event while in a hurry and frustrated.

“My secretary had not kept up with the reimbursements, had lost the fundraiser request forms for the year, and was basically very unorganized when the time for the audit arrived,” Brown wrote.

Brown also said Penn is a not an employee of the company from which the purchases in question were made. Instead, he contracts with the company to “wrap” graphics around vehicles.

But, in her response to the audit, Hull told a different story.

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Hull, in the report, said she kept a spreadsheet on each account, keeping up to date on any deposits or debits to the account.

Hull said she would show Brown the spreadsheets, but the principal would still spend double the amount allowable.

“It didn’t matter to her if there were sufficient funds or not,” Hull wrote. “(Brown) asked for blank checks knowing she was in the negative.”

Hull also wrote that she reminded Brown several times that she should not be writing checks out of the 999 account, which is intended for reimbursement.

Hull also accused Brown of creating minutes to a committee meeting and forging the signatures of teachers.

In a July 12, 2010, email to Watson, Hull asks if a second audit of the school’s funds can be conducted on July 20, before she goes on vacation, out of concern of what Brown could do if Hull weren’t there to respond.

“I thought it would be better to ask this by email rather than phone so that I’m not overheard,” Hull wrote.

Records also show Watson exchanging e-mails with officials from Raise Your Hand Texas and Harvard Publishing. She is told that neither organization recognizes the invoices Brown turned in and that the organizations do not charge for the literature Brown is requesting reimbursement for.

The records were obtained by the Odessa American through an open records request.

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