Diorio on leave as audit continues

SAUGUS – While Saugus High School Principal Joseph Diorio is on leave during an inquiry into school finances, the town manager said he scheduled an independent audit because it “hasn?t been done in years.”Diorio was placed on paid leave Dec. 18, according to a statement Wednesday from Superintendent Richard Langlois. The independent audit was announced in a Dec. 28 letter from Crabtree to the school committee.It?s unclear whether the inquiry mentioned by Langlois is separate from the independent audit because Crabtree said he was unaware of Diorio?s leave when he sent his Dec. 28 letter.?We?re statutorily required to have these accounts audited,” said Crabtree. “It was identified in the management letter from the annual audit. Coming in here in April, we?ve been dealing with a lot of financial issues and trying to get the financial house in order. Part of that process is becoming compliant and putting in internal controls and implementing best practices.”After three weeks of silence on Diorio?s absence, Langlois released a statement Wednesday morning.Langlois said Diorio will remain on leave “pending the conclusion of an inquiry into the management of certain financial and other affairs of Saugus High School.”Diorio has been unavailable for comment.In his Dec. 28 letter, Crabtree informed Langlois that he scheduled an independent audit of so-called decentralized school activity accounts.Town Treasurer/Collector Wendy Hatch, who is overseeing the audit, said Tuesday she didn?t have a “sense of what is in the checking account” for student activities, but noted there?s a $25,000 limit on the account.There is also a savings account for student activities, which Hatch said had a balance of $138,000 in December. Hatch said there is no limit for this account. Money for these accounts is made up of fees for clubs and organizations and fundraising, she said.Hatch also noted that the checking account is normally controlled by the principal, but said “at this point it?s been changed.” She declined to comment further.In his Wednesday statement, Langlois said Diorio?s leave is “not disciplinary and no conclusion has been reached regarding Mr. Diorio.”?At this point Mr. Diorio is cooperating during this inquiry,” said Langlois.Langlois also confirmed that the town has engaged the services of Powers & Sullivan to audit “specific school/town programs.”?As this relates to personnel matters no further statements will be forthcoming until the conclusion of the inquiry,” said Langlois. “We ask that the public refrain from any speculation or conjecture as this potentially is a personnel related matter at this point.During his leave Assistant Principal Jason Merrill has been delegated the responsibility to run the day-to-day operations of the school.”Crabtree said the audit could take a “month or so” to complete, and while he doesn?t know what issues, if any, there are with the accounts, Crabtree said there is “no information of any wrongdoing at this time.”?Based on the lack of information we?ve received, and understandably they have a personnel issue, I?m not aware of anything to do with that,” said Crabtree, who noted he wasn?t aware that Diorio was on leave when he decided to go ahead with the audit. “My concern has to do with the finances and any potential liability or financial risk for the town.”Crabtree said the audit is a “prudent decision” based on a “lack of information” and is in the “best interest of the town and the taxpayers.”?They have a personnel issue ? and it makes it challenging and difficult for my ability to make informed decisions on how to proceed so I thought this would be the best course of action at this time,” said Crabtree.Matt Tempesta can be reached at [email protected].