CLAREMONT โ€” Former SAU 6 Business Administrator Mary Henry has reached a termination agreement with SAU 6.

Henry, who was placed on leave in late August after the districtโ€™s $5 million deficit came to light, had a contract through June 30, 2027, James Oโ€™Shaughnessy, attorney for the SAU, said at Wednesdayโ€™s School Board meeting.

The contract has been โ€œterminatedโ€ by mutual agreement with the SAU, Oโ€™Shaughnessy said.

The five-page agreement states that Henry will be paid her wages through Oct. 31 and for 10 unused vacation days at a rate of $541 a day. There is no severance in the agreement.

Also on Wednesday, the board took the first step toward an investigation into the school districtโ€™s finances, which has resulted in a $5 million deficit and a shortage of cash.

The board approved a recommendation from interim business administrator Matt Angell to hire a forensic auditor to review financial data to identify such things as fraud or embezzlement, and determine losses incurred by such conduct.

The New Hampshire State Police recommended the forensic audit, Angell said.

Before the board approved the request, board member William Madden worried about spending money on a forensic audit without more assurance it would uncover malfeasance, based on what he said Angell had told him previously.

โ€œYou said the books are so bad you are not optimistic about ever finding anything or prosecuting anyone,โ€ Madden said to Angell about a conversation they had a few weeks ago.

In response, Angell said he would present a contract to the board for its approval and promised it would outline the scope of work with a dollar figure.

The district has not said whether the deficit was from one year or accumulated over multiple years.

Angell has told the board he is trying to reduce the $5 million deficit to $2 million before the end of the fiscal year on June 30.

More details on the reason for the deficit are expected when audits for the fiscal years 2023 and 2024 are released later this year.

Henry was a business administrator at neighboring Fall Mountain Regional School District for a year before former SAU 6 Superintendent Mike Tempesta hired her in July 2023. The board fired Tempesta in January 2024 and appointed Chris Pratt, who previously served as principal of Stevens High School, as Tempestaโ€™s successor.

The last School Board meeting Henry attended was on Aug. 14, when board chairwoman Heather Whitney announced the deficit and informed the public of a cash flow problem.

Officials placed Henry on paid administrative leave on Aug. 22 and provided her with a notice of termination. Since then, Pratt has resigned and several other administrators have also departed the district.

Last month, interim Superintendent Kerry Kennedy said Henryโ€™s status had been changed to โ€œunpaid disciplinary suspension.โ€

Since Henry was placed on leave in August, โ€œthe SAU has become aware of a number of additional concerns about her performance as business administrator,โ€ Kennedy said, although she could not share that additional information.

Henryโ€™s termination agreement states that the SAU does not โ€œrelease or waiveโ€ Henry from any โ€œintentional misconduct claimsโ€ from her employment with the SAU including โ€œany criminal conduct or intentional acts or omissions, theft, embezzlement, fraud or any other violation of the law.โ€

Another provision states the agreement is not to be construed as an โ€œan admission of wrongdoing by the employee.โ€

Henry had requested a hearing before the SAU, Kennedy said. But given the termination agreement, the hearing will not take place, SAU 6 School Board Chairwoman and Claremont School Board member Arlene Hawkins said Thursday.

Patrick Oโ€™Grady can be reached at pogclmt@gmail.com

CORRECTION: Former SAU 6 Superintendent Mike Tempesta hired Mary Henry to be the districtโ€™s business administrator in July 2023. The board fired Tempesta in January 2024 and appointed Chris Pratt to replace him. A previous version of this story was incorrect in which superintendent hired Henry.

Patrick O'Grady covers Claremont and Newport for the Valley News. He can be reached at pogclmt@gmail.com