Former Pine Creek principal fired for buying PlayStation, e-bike for ‘incentive program’

COLORADO SPRINGS, Colo. (KRDO) - Tracie Cormaney was terminated as principal at Pine Creek High School (PCHS) after multiple lavish purchases using unapproved district funds, including refrigerators, e-bikes, and PlayStations.

These items were part of an incentive program to retain and encourage staff to participate in school events. KRDO13 Investigates obtained the investigation report by Academy District 20, which describes Cormaney spending $18,452.06 in unapproved D20 funds during her three years as Pine Creek High School principal.

As part of the investigation, Cormaney was placed on administrative leave in January. This led to multiple protests from staff and students, including about a third of the school calling out in February.

“We have done nothing wrong here,” said Pam Krzeczowski, Cormaney’s administrative assistant, during February’s protest. “I can wholeheartedly say that as a person that has been interviewed, we need our principal back.”

"It's really hard for us because we all love our principal Mrs. Cormaney. She's amazing, there's no words to describe her," said high school junior Cameron Cooper during February’s protest. "Whenever you're down, you go in her office and talk to her and she makes you feel at home. She's just very loving and compassionate."

For the investigation, D20 hired an outside auditor with more than 40 years in local government auditing. According to the investigation, the auditor “reports having never seen a program that violated so many rules and regulations.”

As part of the incentive program, PCHS staff could accumulate points for attending extracurricular activities. At the end of the semester, points were redeemed for an “Amazon shopping spree of up to $500 per staff member.” Some of the purchases included a refrigerator, Apple TV, AirPods, Bose music equipment, PlayStation 5 console, pizza oven, and a $399 e-bike, according to the investigation report. All of the purchases were made with D20 general funds.

“Her consistent neglect to seek advice or approval from District leadership, including the Budget and Finance department, has led to the misappropriation of considerable financial resources,” the report said. “This pattern of mistakes highlights a grave lack of fiscal responsibility, and undermines the integrity of her position and the financial stewardship of the District.”

In the report, Cormaney said the incentive program was to help retain staff. Her administrative assistant at the time, Pam Krzeczowski, told KRDO13 Investigates not only did it help keep staff but it also increased morale amongst teachers.

"Many teachers, when they were came to Pine Creek, told us time and time again how much they loved it at Pine Creek and our whole climate and culture of family there," Krzeczowski said. "This program is part of it. We like to do nice things for our people."

Cormaney also told auditors an incentive program was in place when she arrived at PCHS, and because it worked, she didn’t change it and didn’t believe it violated district policy. Krzeczowski said Cormaney had a similar program at Rampart and the district never said anything about either program for years.

"Never once in our time were we told through an audit, we had yearly audits," Krzeczowski said. "We were never told that we should not be spending money this way. Never, never once. Then all of a sudden it's not okay.”

Cormaney claimed she received approval from the district, however the investigation found no proof of that.

“She justified the luncheon and prizes as integral to staff morale, never intended to be secretive or a policy violation,” the report said. “Mrs. Cormaney emphasized the cultural significance of recognizing staff efforts through events like the ‘Fabulous Prizes,’ which she saw as a key part of school culture she inherited and chose not to alter.”

However, the report describes the significant financial effects of this program. All of the purchases were made using D20’s tax-exempt process, which is not supposed to be used for personal purchases. Also, they should have been classified as income for the more than 52 staff members who received these prizes. The auditor said these purchases violated IRS, state, and D20 regulations. According to the report, D20 now has to correct W2s to accurately reflect an employee’s earnings, delaying dozens of staff members' tax filings.

“While these initiatives were intended to enhance staff morale and community engagement, the lack of formal documentation and explicit adherence to financial management policies indicates a need for oversight.” the report said. “The expressed values of appreciation and community building, although admirable, must be balanced with responsible fiscal management and compliance with District policies to ensure the appropriate use of taxpayer dollars.”

Following the investigation, D20 announced in March that Cormaney would not be returning to PCHS. KRDO13 Investigates contacted Cormaney for comment but we never received a response.

D20 provided the following response to KRDO13 Investigates.

"In Academy District 20, we are committed to accountability as it relates to the expectation of all staff members to follow policy and law."

- Academy District 20 spokesperson

“Mrs. Cormaney's remarks throughout the interview largely focused on deflecting blame for the misappropriation of District funds by citing insufficient training, adherence to what she perceived as established practices, and emphasizing the well-intentioned purpose behind the incentive program, rather than directly acknowledging her responsibility for the ensuing policy infractions,” the report said.