A former employee of the Clinton Community School District is accused in the theft of more than $1.2 million from the district. A report from State Auditor David Vaudt covers an investigation of the school district’s books between July 2005 and February of this year.

Auditors found over $1.2 million in undeposited collections, interest and improper disbursements. The district requested the state audit after discovering an alleged misappropriation of funds by the district’s former business office supervisor, 36-year-old Denisa Babcock. Earlier this week, Babcock was indicted on federal charges she stole at least $5,000 from Clinton Community Schools.

Vaudt says the misappropriation of funds includes 177 checks, collected by the district, but not deposited into the district’s bank accounts. Instead, Babcock deposited the checks into personal accounts or used checks to establish or add to a checking account and 30 certificates of deposit at five separate financial institutions.

The investigation found district officials were unaware of the accounts for which Babcock was the only authorized signer. Vaudt says the report has been filed with the FBI, as well as state and local law enforcement agencies.