AZ Auditor - Fraud Report

This alert describes how management did not detect unauthorized credit card and purchasing card purchases and outlines actions you can take to help protect public monies and prevent unauthorized purchases at your organization. 

For the year ended December 31, 2025, our financial investigators reviewed 86 fraud-related allegations concerning school districts, counties, State agencies, universities, community college districts, special taxing districts, and other political subdivisions. We also issued financial investigations reports that led to prosecuting agencies obtaining 18 criminal indictments against 2 individuals for potential losses totaling $259,683. Additionally, as a result of previous financial investigations, 2 individuals pleaded guilty and were sentenced for a combined total of 10 years of incarceration, 6 years of probation, and $51,858,112 in restitution. Finally, our financial investigators conducted fraud prevention trainings and other activities to help Arizona public officials and employees understand what could go wrong and what actions they can take to help protect public monies and deter and detect fraud. 

As part of their responsibility to prevent and detect fraud, Deer Valley Unified School District (District) officials took appropriate action by reporting to us alleged financial misconduct by Michelle Haworth, former accounting clerk at Mountain Shadows Elementary School (MSES).

Our investigation revealed that from February 2022 through February 2023, Ms. Haworth may have embezzled $6,578 of District monies. Ms. Haworth admitted she deposited MSES book fair receipts totaling $6,278 into her personal bank account and took $300 of MSES petty cash for personal purposes.

We submitted our report to the Maricopa County Attorney’s Office, which on January 27, 2026, presented evidence to the Maricopa County Superior Court Grand Jury. The action resulted in Ms. Haworth’s indictment on 5 felony counts related to misuse of public monies, theft, fraudulent schemes and practices, and computer tampering. 

Our Office has investigated many fraud schemes in which public documents had been forged and filed in a public office. Although these practices are crimes in and of themselves, individuals often use forgery and false filing to perpetrate their schemes or attempt to conceal their crimes. This alert outlines how public officials can exercise appropriate oversight to help protect public monies and records. Specifically, public officials should ensure that they:

• Separate cash-handling and public recordkeeping responsibilities among employees;

• Objectively scrutinize public records that support transactions to ensure they are true and genuine; and

• Develop policies to secure and properly safeguard public documents.

Putting effective controls in place can help ensure compliance with state laws and help prevent fraud, waste, and abuse. Putting effective controls in place can help ensure compliance with state laws and help prevent fraud, waste, and abuse.