Questions on Saugus principal pay

SAUGUS – The audit into the high school student activity account details nearly $17,000 in “questioned” stipend payments made to Saugus High School Principal Joseph Diorio between 2006 and 2013.Starting with the 2006 business year, the audit, released to selectmen this week by Powers & Sullivan, a Wakefield accounting firm, questions the “appropriateness” of two $1,750 stipends paid to Diorio from the Battered Women and Child Program.?We are questioning these payments because we were not provided with information that would support the appropriateness of these payments ?” the audit states. “The town?s payroll department informed us that this is due to Mr. Diorio having been paid for services performed outside of the scope of his contract. Because the detail payroll records from fiscal year 2006 were not available, we cannot conclude with certainty whether or not the two stipends were paid with proper authorization.”In 2007, the audit questions $2,359 in stipends paid to Diorio, which included $480 for a yearbook adviser stipend, $479 for a student activity fund stipend and $700 for SAT stipends. The audit states the SAT stipends were paid out of the high school rental fund and could be “seen as an attempt to hide that fact that these transactions even occurred.”?Unless someone did a detailed analysis of this account it would be difficult to see these SAT payments were made,” said the audit. “By using high school rental fund it also hid the true nature of the payroll expense, for all employees, which normally would be charged to a guidance revolving fund.”The audit goes on to say that although Dioro was paid two $350 stipends from the building rental fund, the true nature of the stipend was a payment from the SAT student activity account that “he controlled and authorized the payroll clerk to pay him.”?We found no evidence of authorization of this stipend from the Superintendent or School Finance Director,” said the audit.The audit also questions the $479 yearbook adviser stipend because “nobody could provide an explanation as to why the high school principal would have been eligible for this stipend.”The audit states the superintendent?s office reviewed 23 past yearbooks and the principal was “never acknowledged as being a contributor or adviser to the yearbook preparation process.”?We have been told that the outgoing senior class typically acknowledges, in written format within the yearbook, employees of the school department that have contributed to the yearbook production,” said the audit.The audit questions similar yearbook and SAT stipend payments for 2008 and 2009 totaling $4,400, states there were “no questioned costs” to consider for 2010, and states in 2011 there was $1,500 in stipends from the student activity fund that were questioned due to “lack of available support.”For the 2011-2012 school year, the audit states Diorio was paid a $2,000 summer school stipend and for the 2012-13 school year, he was paid a $3,000 summer school stipend.However, citing a July 31, 2009 email exchange between Diorio, Superintendent Richard Langlois, Donna Anderson and Judith Eldridge regarding the stipends, Anderson states the $2,000 stipend was included in Diorio?s base salary for the year, “therefore no payment will be forthcoming.”Diorio responded to all parties listed above and stated that, “My stipend was just explained to me last week by Rich,” according to the audit.?This email was sent less than a week before Diorio signed the current contract and we believe the email clearly indicates that he understood that the summer school stipend was included in the new base,” the audit states.The audit states that no payments were made for the next two years, however, in the summers of 2011 and 2012, Diorio was paid a total of $5,000 for a summer school stipend, according to the audit.Auditors stated they are “not aware” of any amendment to Diorio?s contract and the superintendent was “adamant that he never would have approved the paymen