Alto ISD’s $129K Stolen Check Confirmed by TEA—No Insurance or Bank Reimbursement

ALTO, Texas (TXAN 24) — New financial details from the Texas Education Agency (TEA) confirm that Alto ISD suffered a $129,250 financial loss due to a stolen check, a revelation buried in the district’s annual audit under an “extraordinary item.”

According to an email from TEA’s Assistant Director of Financial Compliance, Paul Moreno:

“The missing funds were documented in the district’s financial statement under item 8913 Extraordinary Item, referencing Note 13 on page 38 of the report.”

What Happened?

Alto ISD issued a check to a vendor, but it was stolen in transit and altered before being cashed. Despite reporting the mail theft to authorities, the district’s attempts to recover the funds through insurance and the bank were rejected.

With no reimbursement, the $129,250 loss directly impacts the district’s financial reserves, which had already dropped by more than $1.1 million in the past year.

Why This Matters

This latest development adds to the financial instability already facing Alto ISD. The district had previously reported a $1.6 million budget deficit, raising concerns about potential state intervention if the trend continues.

TXAN 24 News’ previous reports on Alto ISD’s financial struggles faced scrutiny, with the district bringing in an auditor to challenge our findings. However, TEA’s direct confirmation of the missing funds, along with the rejection of insurance claims, further validates the serious financial concerns we originally uncovered.

With no clear recovery plan for the stolen funds, Alto ISD taxpayers are left wondering: How will the district fill this financial hole?

For continuing coverage of Alto ISD’s financial challenges, stay with TXAN 24 News.