Ex-Elmhurst D205 Official Escapes Scrutiny In Audit

ELMHURST, IL – A recent audit of Elmhurst School District 205's credit card use did not reveal how much money a former official improperly spent or who, if anyone, approved the spending.

The district's former facilities director, Todd Schmidt, only got a couple of passing mentions. He was the one who a Patch investigation showed spent $47,615 on his government card for personal uses such as booze, cigars, restaurant meals, groceries, and country club and sorority payments.

Last month, board President Athena Arvanitis issued a statement summarizing the audit. Patch later filed a public records request for the four-page document.

The audit report from Chicago-based Ostrow Reisin Berk & Abrams gave the district recommendations, but did not detail Schmidt's credit card use.

He was the facilities director for six years until he resigned suddenly in early December after he was arrested on charges of stealing tens of thousands of dollars from his mother.

Schmidt's credit card use prompted the audit.

According to the document, the process for issuing credit cards to employees was unknown under the finance department's previous management.

Schmidt's boss, Assistant Superintendent of Finance Chris Whelton, resigned in February in the wake of the credit card issues.

The auditor recommended that the district store all credit card requests, communications and signed agreements. It suggested a formal process for determining who needs cards.

The auditor also advised keeping a list of who reviews credit card spending in each department.

Instances exist in which the district may need to temporarily increase a credit card limit, the auditor said.

"Management is not sure what process was used in the past for these requests," the audit said.

The auditor also recommended reducing the number of credit card users, particularly among teachers, coaches, principals and facilities employees. As of December, the district counted 125. By March, the number dropped by five.

According to Patch inquiries, some districts have few cards. For instance, Lyons Township High School says it has four.

Others are more in District 205's ballpark. New Trier High School and Downers Grove High School District 99 have 165 and 130 card users, respectively.

The auditor tested 16 randomly selected credit card users in District 205.

"(N)o material discrepancy was uncovered," the audit said.

The report noted the district's interim facilities director, Brent Braski, replaced Schmidt and that he reviews all envelopes that contain credit card documentation from his employees.

In another case, the audit vaguely referred to issues with Schmidt.

"Given the nature of his predecessor and the new role, (the district should) confirm that Brent is properly trained regarding the new procedures and approvals in place," the audit said.

Patch has filed a follow-up public records request to determine whether the district has tabulated the amount of Schmidt's credit card use that it deemed improper.

Patch obtained Schmidt's credit card bills going back to January 2020. His personal spending largely ended in 2022. It has never been clear why.

The public records show that Schmidt reimbursed the district for his personal spending every month. He was essentially getting short-term loans courtesy of taxpayers. In many cases, his personal use of the credit card totaled far more than its public use.

In December, the Elmhurst Police Department said it would wait for the audit before deciding whether to investigate Schmidt for his spending.

Some of the facts resemble a case from two decades ago in downstate Pekin. In that situation, Pekin's former mayor faced charges of official misconduct, a Class 3 felony in Illinois.

After being elected, the mayor used his city-issued credit card for cash advances of $1,400 to play video poker at a Peoria casino, prosecutors said.

The mayor paid back the money. In one instance, though, his check bounced, but he quickly reimbursed the city, according to court records.

In the case against the mayor, the state said he exceeded his lawful authority because he broke the public funds clause of the state constitution. The clause states that "public funds, property or credit shall be used only for public purposes."

In 2008, the state Supreme Court rejected the mayor's appeal, affirming his conviction.