Audit Finds Former Munster School Bosses Owe Town $851,000

MUNSTER, Ind. (CBS) -- Two retired school administrators in Northwest Indiana have been asked to pay back hundreds of thousands of dollars in salary bonuses and retirement benefits.

A state audit found that the men who ran the district for years, retired superintendents William Pfister and Richard Sopko, owe the district $851,000 in over payments.

The audit by the Indiana State Board of Accounts was triggered after the school board found contract "irregularities" and reported them.

The biggest chunk comes as a result of over payments to their annuities--$359,198 for Pfister and $311,198 for Sopko, the report found.

CBS 2's Brad Edwards went to Sopko's home seeking a comment, but nobody answered the door. A person answering the door at Pfister's home slammed it shut.

State Board of Accounts by John Dodge

Munster parent Matt Maloney said, "It's not shocking, but it's disgusting."

The news of the over payments comes as the School Town of Munster has been struggling with a budget deficit. Three years ago, residents approved a tax increase, pushed hard by Sopko, to avoid major cuts to programs and school jobs.

"A lot was blamed on state funding, they tried to say their hands were tied, but it was more like they were lining their pockets," Maloney said.

Pfister reportedly once had a salary that neared $300,000 a year.

The duo's attorney says both men were paid according to their board-approved contracts.

The report was sent to the Indiana attorney general and the Lake County prosecutor.

In a statement from the school's attorney, Kathleen Maicher, said the school board and administration "has and will continue to cooperate with any further ongoing investigation."