Former Center Grove superintendent's 'abuse of power' led to misuse of public funds, district says

A state investigation found that former Center Grove Superintendent Rich Arkanoff took more than $48,000 in unreported time off and failed to repay personal expenses during his final years leading the Johnson County district.

A special compliance report filed last week by the Indiana State Board of Accounts concluded that Arkanoff recorded 44 days of leave between 2022 and early 2024 on his work calendar but did not properly submit those absences in the district’s payroll system.

In addition, state auditors found $1,190 in personal purchases on a district-issued credit card that Arkanoff did not reimburse.

Arkanoff abruptly retired on Jan. 5, 2024, days after Center Grove Community Schools officials discovered discrepancies during an internal review, according to the state report.

"The abuse of power by a high-ranking public servant is a serious matter, particularly when it results in personal financial gain at the expenses of a taxpayer-funded school corporation,” Center Grove School Board President Rob Daniels wrote in a response to the SBOA report.

Arkanoff could not be reached for comment. State Board of Accounts auditors discussed the findings with him on April 11.

Arkanoff was hired to lead the district in 2011. In 2013, the school board unanimously approved a 19% raise, or a $30,000 increase, to his base pay. For 2023, he was paid $244,724, not including benefits and other perks, according to Indiana’s employee compensation report.

The district was able to adjust its final payout to Arkanoff to recover $36,207 of the missed leave days, according to the state audit filed April 22. Arkanoff’s attorney reimbursed $11,025, but the state still seeks to recover more than $2,100.

Daniels said the school district intends to get back an additional $27,782 of expenses not included in the state audit. The district may also refer the issue to the Indiana Attorney General's Office and Johnson County’s prosecutor for legal action.

Center Grove officials said they have updated payroll tracking, credit card oversight, and financial reporting procedures to prevent similar issues in the future.

Daniels, the school board president, said the district is committed to improving transparency and holding leaders accountable.

“This type of conduct will not be tolerated from anyone in our organization, especially those in leadership positions,” Daniels said in a statement to families. “The Board remains steadfast in our commitment to proper governance and fiscal responsibility.”

Center Grove Community Schools enrolls around 9,600 students. The student body is about 77% white, and 26% qualify for free or reduced-price meals — the national metric for calculating student poverty.

Center Grove High School’s 2024 graduation rate was 95%.

Bill Long was named interim superintendent following Arkanoff’s departure. The board approved his contract as superintendent in July 2024. Long has worked as an administrator in the district since 1998.

Eric Weddle is WFYI's education team editor. Contact Eric at eweddle@wfyi.org or follow him on X at @ericweddle.