A financial investigation announced in January has led to the first public actions in the case. A former employee in an eastern Iowa school business office is blamed for the missing funds.

The Clinton School Board has agreed to accept the insurance payment of $500,000, the maximum of the policy, in the case of misappropriated funds and to pursue the funds in excess of the policy limits from the former employee named as the person accused of misappropriating the money.

The school system issued a statement on the ongoing investigation of financial irregularities. For the first time, the amount of funds was revealed at more than $500,000 and a former employee was named as the person responsible. In a business meeting the school board agreed to accept the insurance payment and pursue legal action to recover any other funds or property the district may be owed.

The district statement said only limited information is being released at this time at the request of investigators. No one has been officially been charged in the matter yet.

By Dave Vickers, KROS, Clinton

Radio Iowa