The Indiana Attorney General’s Office filed a lawsuit to recover $83,000 from a Spencer County (Ind.) woman they say misappropriated North Spencer County (Ind.) School Corp. funds from 2007 to 2013.

The lawsuit states that an Indiana State Board of Accounts audit released in May showed that Melissa Isaacs failed to deposit $59,800 and had $11,700 of unauthorized disbursement of school funds during her six years as Heritage Hills middle and high school extracurricular treasurer.

The state audit covered from July 2007 to Feb. 25, 2013. The report showed that under Isaacs’ watch $45,700 in textbook rental collections from 2007 to 2013 were never recorded or deposited. She also failed to deposit athletic department funds, school lunch receipts and $7,000 in extracurricular activity funds, which she reimbursed in November 2012.

As of Friday, no criminal charges had been filed by the Spencer County prosecutor's office. Isaacs was released from her job in February.

In April, Isaacs dropped off six bank bags with a total of $15,000 at a bank. Isaacs reportedly said the bags were "the deposits that I forgot I had,” according to the state audit report.

In an open letter from Isaacs attached with the audit, she denied wrongdoing, and said that employees who collected textbook fees inflated the total by “putting down totals of checks for several students’ book rental,” she wrote. She also asserted in the letter that she deposited all athletic department funds concerning game tickets.

Adding $34,000 for audit costs, the state is suing Isaacs and RLI Insurance Company of Peoria, Ill., which bonded Isaacs $50,000 a school year in employee-theft coverage, to recover the remaining moneys that we’re never deposited, totaling $83,000.

Along with the lawsuit, the Attorney General’s Office obtained a temporary restraining order against Isaacs to stop her from selling or transferring financial assets, including real estate, nine vehicles, three vehicle trailers, bank accounts and all pension and retirement accounts.

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