The audit report, released in 2007, said that Kelly received pay and benefits in excess of his contract. It said that Kelly received $3,115 more than his regular salary, plus five days of family leave - not authorized by his employment contract - and $2,500 of school money improperly paid into his tax shelter annuity account, all without documented board authorization.
The state Comptroller's report said that three school administrators received $4,651 in improper payments, and no money should have been paid into his or other administrator's tax annuity accounts.
The state concluded earlier this year, however, they weren't going to take action on these issues against the school district.
State police investigators and uniformed personnel investigated this recent case against Kelly.
Kelly said Thursday that if the case got to court, three school board members of the nine would be testifying in his behalf.
"This is all about $2,500," he said. "This is crazy - why would I risk going to jail over $2,500?"