Serving
Mohave County
December 2024
Volume 24 Issue 10
COMPLIMENTARY

CRUHSD accepts Burgess’ resignation amidst financial misconduct allegations

September 2024 | 0 comments

September 2024

BULLHEAD CITY — The Colorado River Union High School District (CRUHSD) governing board has formally accepted the resignation of former Mohave High School athletic director Kory Burgess, concluding a tumultuous period marked by extensive allegations of financial misconduct and procurement irregularities.
The board’s decision, reached in a special meeting with a 3-0 vote, came after careful consideration of whether to accept Burgess’ resignation or proceed with termination. Board President Dr. Richard Cardone cited potential legal costs as a key factor in favoring resignation acceptance. ”We’ve terminated people for less than this,” Cardone stated. ”But I think if we go the termination route, then he has 30 days to file an appeal and the attorney has 30 days — five months later, after a huge attorney bill … it just seems better to me to accept this resignation and be done with it.”
The resignation acceptance follows a comprehensive internal investigation that uncovered a series of alleged financial improprieties. In June, CRUHSD Business Manager Sam Dell presented a detailed 265-page report to the board, outlining numerous policy violations and procurement issues linked to sports programs under Burgess’ supervision.
Key findings from Dell’s investigation included:

  1. Unauthorized Purchases: Burgess allegedly made a $15,100 purchase of a scorer’s table without obtaining necessary board approval. While the item was eventually returned, it raised significant concerns about adherence to district procurement policies.
  2. Conflict of Interest: The investigation revealed undisclosed conflicts of interest related to purchases made from the Mohave Youth Development Association, a nonprofit organization co-founded by Burgess and his wife in 2019. Transactions included the purchase of therapy tables and a water fountain, with Burgess serving as a board member for both the school district and the nonprofit.
  3. Suspicious Financial Transactions: Perhaps most alarmingly, the report uncovered an unauthorized private bank account labeled ”32 Degrees B.” This account was allegedly used to process debit and credit card payments from concession sales at both Mohave High School and the Anderson Auto Group Fieldhouse. Funds from this account were then transferred to the Mohave Youth Development Association, which subsequently issued checks to the school’s wrestling student account. Dell emphasized the lack of proper reconciliation between these accounts, stating, ”There’s no reconciliation from the first bank account to the second bank account to the final bank account,” highlighting a high potential for financial mismanagement or theft.
    Burgess submitted his resignation on June 24, while the investigation was still ongoing. Notably, this resignation came just four days after the Bullhead City School District’s governing board approved his employment as Fox Creek Jr. High School’s new assistant principal, creating an overlap that further concerned CRUHSD board members.
    The board’s acceptance of Burgess’ resignation included a stipulation that the State Board of Education be informed of the alleged misconduct. Cardone also called for the reimbursement of any payments made to Burgess under his employment contract.
    Superintendent Tim Richard confirmed that a police report had been filed with the Bullhead City Police Department regarding the alleged misconduct. The board agreed to allow the justice court to determine if any criminal activity had occurred.
    For his part, Burgess expressed satisfaction with the board’s decision, telling the Mohave Valley Daily News, ”I am happy with the decision the board made.” He maintained that his resignation was submitted in a timely manner and in accordance with all contractual and legal requirements.
    The decision to handle Burgess’ case in a public session, rather than behind closed doors in an executive session, was attributed to the nature of the allegations involving public funds, according to Cardone.
    As this complex situation continues to unfold, several agencies, including the State Board of Education, the Arizona Auditor General, the state Attorney General, the Internal Revenue Service, and local law enforcement, may conduct their own investigations into the matter.
    The case has raised important questions about financial oversight and accountability in school districts. It serves as a reminder of the critical importance of transparent and rigorous financial management practices in educational institutions, particularly when dealing with public funds and resources intended for student benefits.
    Moving forward, the CRUHSD board has indicated it will be reviewing and potentially strengthening its financial oversight and procurement policies to prevent similar situations in the future. The district also faces the task of rebuilding trust with the community and ensuring that its athletic programs can continue to serve students effectively despite this controversy.
    As the various investigations proceed, the full impact of this case on both CRUHSD and the broader educational community in Bullhead City remains to be seen. What is clear, however, is that this situation has sparked a renewed focus on financial accountability and ethical conduct in school administration, lessons that will likely resonate far beyond the boundaries of this district.
    —Jeremy Webb
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