Audit Firm Investigates Elmhurst D205 Finances

ELMHURST, IL – Two weeks ago, Elmhurst School District 205 hired an audit firm to examine the district's financial practices amid questionable credit card spending.

The firm is Chicago-based Ostrow Reisin Berk & Abrams. According to its engagement letter, the firm's services are likely to cost at least $20,000.

Patch obtained the letter through a public records request.

As part of the inquiry, the firm plans to review the use of credit cards and payment processes.

Ostrow is also set to examine the bidding for recent construction projects.

"This review may include analyzing the process, reviewing the bids received and understanding the decision process in choosing the winning bids," the firm said in the letter.

The district's finances are under a cloud.

In November, Todd Schmidt, the facilities director who oversaw $168 million in building projects, was arrested in Rockford on charges of swindling his mother out of tens of thousands of dollars.

After that, Patch reported Schmidt, who resigned in early December, used his district credit card for $46,000 in personal expenses, including alcohol, cigars, restaurant meals, airfares and sorority payments. He paid back the money monthly with a check, essentially benefitting from short-term loans.

The district has declined to say who approved the spending or whether anyone else received a similar benefit.

Schmidt's supervisor was Chris Whelton, assistant superintendent of finance. In January, he entered a severance agreement with the district, leaving at the end of February. The district agreed not to interfere with any unemployment claim from Whelton.

After Schmidt resigned in December, the district said it was launching an internal investigation.

Late last month, school board President Athena Arvanitis said the inquiry could take a few months.

Elmhurst police said their involvement would depend on the audit's outcome.

The audit firm's report would be an open record under state law.