The St Joseph School District’s questionable expenditures and other financial obstacles could result in a decline of the district’s financial condition.

So says Missouri State Auditor Tom Schweich in a scathing report on his audit of the district.  The district received an overall rating of “poor,” the first such rating for a school district in four years.

It all started with stipends, and Schweich says that was perhaps the biggest problem auditors found.  The announcement Tuesday was delivered in a new school that came in cheaper than the stipends.

Scheich told a gathering at the new Oak Grove Elementary School that a staggering $25 million in stipends were paid over the last eight years that were “either unapproved, unauthorized or improper.” He estimated that total to be in excess of $40 million dating back to 2001. $3.8 million in stipends were paid in 2013-2014.

The audit report recommended a formal compensation study, revised salary schedules and the elimination of unnecessary stipends. They recommended a review of vehicle allowances and travel stipends, and said the Board should consider eliminating unnecessary additional compensation payments.

In the formal report, the St Joseph Board of Education said a compensation study is already in the works and will be evaluated. The board noted that it had adopted a salary index for the 2015-2016 school year that incorporated administrative stipends into salaries. The board promised close oversight of how employees are placed on the salary index “according to duties and responsibilities.”

The Board asserted that all contracts and salary notifications will be available for the Board to review and audit.

The district will also review vehicle allowances and eliminate travel stipends when possible, and said it would consider eliminating unnecessary additional compensation payments in the future, according to the board’s response.