A rural school district in Olivia, Minnesota, is facing a projected $700,000 budget deficit and working with police after uncovering suspected financial mismanagement.
According to Superintendent Jim Menton of the Bird Island-Olivia-Lake Lillian (BOLD) school district, the shortfall is driven by rising transportation costs, payroll discrepancies, and unpaid bills, including a $90,000 landscaping charge from years ago. The district began identifying these financial issues late last summer after concerns arose regarding the former business manager’s handling of funds.
Authorities are investigating a 48-year-old former business manager, who worked at BOLD from May 2021 to September 2024, over allegations of embezzlement. A search warrant suggests she may have used school funds for personal expenses, including Walmart and Buffalo Wild Wings purchases, auto loan payments, and energy bills, totaling over $11,500 in questionable credit card charges.
As part of an internal audit on September 5, staff questioned the business manager about two lap desks allegedly purchased with school funds but never received. She denied knowledge of the items and resigned the same day. Following her resignation, the district discovered overdue vendor payments, uncashed checks dating back to April, and a $13,000 concession deposit missing its cash portion.
Menton reported that after taking over the former business manager’s emails, he was inundated with overdue payment requests, including one outstanding for over 220 days and exceeding $12,000.
To prevent further financial mismanagement, the district has introduced stricter financial controls, including detailed receipt requirements and enhanced oversight of fund handling.
The largest portion of the deficit—around $400,000—is attributed to increased special education transportation costs, with payroll overruns contributing another $200,000. In response, the district has cut certain transportation routes to reduce expenses.
Menton expects the investigation, led by Olivia police and state authorities, to conclude within two to three weeks.
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