Claremont schools uncover $5 million hole after administrator's failures

The Claremont School District released a detailed termination letter this month that ties the departure of former business administrator Mary Henry to a series of financial and governance failures that contributed to a roughly $5 million shortfall. The memo from interim Superintendent Kerry Kennedy cataloged accounting lapses, secret agreements and a tax-rate mistake that left the district underfunded.

Kennedy wrote that Henry failed to reconcile bank statements, did not reconcile health insurance payments for retired teachers, and did not cooperate with auditors. One practice raised particular alarm: Henry entered payments into the accounting system but kept the checks in a desk drawer instead of sending them to vendors. "As a result, SAU has been unable to confidently determine which invoices have been paid and where debts are still outstanding. There is not a legitimate business reason for issuing checks, recording that a payment has been made in the system, and then not delivering those checks," Kennedy wrote.

The letter says Henry also enrolled SAU 6 in a HealthTrust membership in June 2024 without board approval and signed a settlement agreement with SchoolCare without notifying the board. In November 2024 she sent inaccurate data to the New Hampshire Department of Revenue Administration, resulting in a lower-than-needed tax rate and shortfall in district revenue. Other findings include failure to follow IRS rules for reimbursements, mishandling grant funds so expenses were shifted between districts, and delayed audits that could jeopardize federal grant funding. Kennedy added that these failures provided grounds for termination "for immorality, incompetence, insubordination, or failure on the part of the administrator to conform to the laws of the state of New Hampshire, the rules and regulations of the state Board of Education, or the SAU and of the local school boards within the SAU."

Henry was placed on paid leave Aug. 21 after the deficit surfaced and was given notice of planned termination Aug. 29. She challenged the firing and continued to receive pay for weeks before being placed on unpaid leave Oct. 8. She ultimately entered a termination agreement in early November. Henry did not respond to a request for comment. Her supervisor, former Superintendent Chris Pratt, left in September with $40,000 in severance; Henry received roughly $5,000 for unused leave.

District comptroller Matt Angell told the school board last week he believes the deficit can be erased by the end of the school year. "I do see a path forward to wiping out the deficit," Angell said, and he plans to release a new estimate in the coming week.

The community impact could be wide-ranging. Late audits and at-risk federal grants threaten programs that support students with the greatest needs, and mismanaged retiree health accounts raise questions for former employees who rely on steady coverage. The governance lapses underscore the need for clearer oversight of contracts, health plans and grant accounting so taxpayer dollars reach classrooms instead of getting lost in paperwork.

Our two cents? Watch the upcoming budget sessions, ask the board for clear line-item explanations, and press for regular audit updates so Claremont families and taxpayers can hold local leaders accountable.