More than $500,000 was apparently embezzled from Woodland Park School District Re-2 over about four years, Superintendent Guy Arseneau said Monday.

No arrests have been made, but one district employee has been fired and police are investigating her computers and personal financial records, police and school authorities said.

Woodland Park Police Chief Robert Larson said no money has been recovered.

The loss will not affect existing programs but could delay some planned projects, Arseneau said.

"Our contingency fund will cover us until we can try and recover some of the money," he said. But that fund was earmarked for educational programs such as full-day kindergarten and a new School in the Woods.

"We might have to go back and reprioritize some things."

The district has about 2,800 students and an annual budget of about $26 million.

District authorities launched an investigation last month after auditors discovered discrepancies in the books during a routine audit in August. A forensic audit began Oct. 20, and police also launched an investigation into possible computer crime, embezzlement, forgery and theft from 2004 to 2008.

On Oct. 27, police executed a search warrant at the Woodland Park home of Deanna L. Moore, 60, and confiscated computers and personal financial records, Larson said. He also said police obtained a court order to gain access to Moore's banking records. That process is time-consuming, and police have not received all bank records, he said.

Moore worked for the school district about 20 years and was most recently the supervisor of finance. She no longer works for the district, Arseneau confirmed Monday.

Larson declined to characterize Moore as a suspect and said embezzlement cases are complex, requiring many records to be gathered before charges are filed.

A message left for Moore was not returned.

The district news release said funds were manipulated to "avoid detection by our internal procedures as well as the annual financial audit." But the audit of the 2007-08 books revealed some large adjustments that raised auditors' suspicions, Arseneau said.

The investigative audit was completed Friday and the auditors and lawyers met Saturday with the board of education in a closed session, Arseneau said. Auditors will continue to examine books in the years before 2004.

"We're looking back to make sure we have everything covered," he said. "We want to hit a clean and clear year."

While the criminal investigation is in the hands of police and the 4th Judicial District Attorney's Office, Arseneau said the district will pursue recovering money through insurance and a civil suit, and is being assisted by the finance department of the Colorado Department of Education.

He said the district will examine all its systems to make them as secure as possible.

"We have a feeling of betrayal," he said. "We've been robbed. But we've changed the locks and we're going forward. My biggest hope is that we can keep this as far removed from classroom as possible."

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Contact the Writer: 636-0251 or sue.mcmillin@gazette.com