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Alleghany County School Board member, Donnie Kern. HCA accountant alleges financial problems at the Alleghany County School Division

Kern Documents Accuse Alleghany School System Of 'Potential' Fraud & More
It's Not Clear That They Were Ever Sent, However

Clifton Forge, VA (Feb. 1, 2019) - The AlleghanyJournal.com sought information from the Alleghany County School Board last weekend, pertaining to a December, 2018 set of documents known to have been created by school board member, Donnie Kern, allegedly with the intent to file them with certain state agencies in which he made numerous allegations of wrongdoing.

But when the Journal asked Kern in a recent email about their existence, he denied knowing anything about them. So, if the pdf documents which are linked to this story were ever mailed to the state officials noted at the top, isn't known.

What is known is that Kern did send them to Alleghany County Board of Supervisors member Richard Shull. And since that time, other county officials have read them.

Kern HAS filed a document with the school board in which he alleges harassment from the Superintendent, but the Journal was denied access to that particular item due to the fact that it has been classified as a "personnel issue."

Here are some of the highlights of what Kern alleged in the trove of documents for whom he lists as potential recipients - the Honorable Colonel Gary T. Settle, Superintendent of the State Police (North Chesterfield, VA), the Honorable Martha Mavredes, CPA, Auditor of Public Accounts in Richmond, and the Honorable Michael Westfall, State Inspector General in Richmond on December 11, 2018. The Journal uses the word "potential," because to date, no Alleghany County Schools official has heard from any state agency or official to confirm they ever received them.

According to Kern, "I have decided to report what I feel is a "reasonable possibility" that a fraudulent activity is occurring under Sec. 30-138. I do not make this decision to report in haste, but through moral conscience, and my sworn duty to uphold the Constitution of the United States and the Commonwealth of Virginia. My "reasonable possibility" may prove to be inadequate, but nonetheless, I am at my end in trying to determine the difference between possible and factual. It's time you decide. I do not believe the fraud that is occurring is through theft of assets. As this has yet to be revealed to me, however it would not surprise me if it is occurring."

At the end of each page, Kern lists himself as a "Constitutional Officer."

Here are some of the highlights in the documents:

- a complaint from Kern that due to the volume of his informational requests, a fee of $5,200 would be necessary to fulfill them.

• $1,230,000 has been fraudulently appropriated to the Alleghany County School Board and has been misappropriated."

• $3,000,000 (approximate) has been fraudulently aquired (sic) and misappropriated in the Operating Fund-1. These amounts have been misappropriated and were used to transfer to the School Capital Fund-10."

• allegations that "ACPS (Alleghany County Public Schools) is billing Medicaid for services that are not being provided due to its steady increase and revenue collection rate..."

Under Kern's "Plan of Action", he said, "I believe after you have reviewed this report and the accompanying exhibits that I used (sic). You will determine as I have that a potential fraud is occurring and is warranted a full-scale investigation. If you decide to investigate I would offer you these critical suggestions."

• "Assume everyone is guilty in-order (sic) to provide independence in the matter."

• "Build a 20+ person team and infiltrate at one time."

• "Change the locks to all the areas with education records until after the investigation."

• "Look for forgery in the documents (ask for the originals to detect if the signatures were transposed to another document)."

Kern suggests that there seems to be problems with "unfilled positions," that fund balances were not audited, listed several other allegedly accounting issues, and suggested that some restrictions on discussions held in closed session weren't correct.

And in closing, Mr. Kern added, "I wish I didn't have to make this report but this is the sacrifice one person gives to the community he loves so much. In the end I hope my suspicions are wrong but I rarely make mistakes. The current environment is very troubling and we need it corrected. These children deserve better; we live in America and this shouldn't be happening."

• Mr. Kern lists himself an an employee of the Hospital Corporation of America, Lead Accountant, Low Moor, Virginia.

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The Journal contacted Alleghany County School Board chairman, Randy Tucker, on Friday, February 1, 2019 about the documents and allegations. Tucker said that the documents weren't filed with the school board and he wasn't sure that they were ever sent to the individuals listed as recipients.

Kern Doc 1

Kern Doc 2

Kern Doc 3

Kern Doc 4

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(Editor's note: Anything is possible these days, including ghost-writing of inaccurate documents. The details contained in the documents, including the statements Mr. Kern has made on repeated occasions at Alleghany County School Board meetings and elsewhere, give the Journal nearly complete confidence that Mr. Kern is, in fact, the author of the linked documents, despite his earlier denial.)


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