Davis School District officials told Paul C. Smith they were just following financial audit standard procedures by placing the Layton High School principal on paid administrative leave, Smith says.

"I haven't done anything wrong," Smith told the Deseret News on Wednesday.

Still, Smith's status has added to Layton High's rumor mill.

The school is a hotbed of gossip. First, the choir director had an affair with a student. Now two desks are sitting empty since the principal is on leave as of Monday, and the head secretary retired Monday. And district investigators are sifting through the school's financial records.

"It's a shock to everybody to hear about this. They should say why," said parent Diane McBride, who has a daughter at Layton High.

Assistant principal Muriel Mann, during a meeting Wednesday morning, told Layton High's Community Council the school's finances are being audited, according to Community Council member Steve Handy.

"It's a bad turn of events," Handy said. "It's the imperfect storm that has hit our high school."

Davis School District spokesman Chris Williams said an investigation involving Smith began Monday, when he was put on leave.

Williams confirmed Leslie "Cookie" Barker retired Monday but wouldn't say whether her retiring that day had anything to do with the school's finances, whether it was connected to the principal being placed on leave or whether her retirement had already been planned.

Williams wouldn't confirm whether a financial audit is part of the district's investigation or when the investigation will end, saying releasing details to the public "wouldn't help the investigation or be fair to employees."

Layton police told the Deseret News Wednesday there is no criminal investigation at this time regarding Layton High's finances.

Smith referred specifics on his paid administrative leave to the district but added "it's not disciplinary." The principal said he doesn't know how long he will be on leave but said he isn't happy about it and misses being at the school.

Smith, who has led Layton High for 34 years and once was named the state's principal of the year, worries the allegations will lead people to think less of him.

"I think this has tarnished me greatly. When you're in a public position of trust, you want to be thought of as good," he said. "It's very painful. But I can't stop the rumors."

Barker did not return phone messages left by the Deseret News Wednesday.

Parents, such as Handy, want a quick resolution of the investigation involving Smith. "I have nothing but the highest regard for Mr. Smith. He could have retired last year. I would hate to see his career go out on a sour note like this," Handy said. "Let's get to the bottom of this — get it resolved and move on."

The school's choir director, Joseph Everton, 62, who had a relationship with a then-17-year-old female student, is still on paid administrative leave. The girl graduated last spring and married Everton in September. A police investigation Tuesday found Everton's actions, although inappropriate, aren't considered criminal. No charges will be filed.

The district is investigating Everton's actions. Williams said district officials expect to get the police report by the end of the week and it will "have a bearing" on the investigation.

Everton's case will also likely come before the Utah Professional Practices Advisory Committee for potential consequences, which could include suspension of his teaching license. Everton has taught in Davis District since 1978 and at Layton High since 1981.

Whether Everton would come back and teach at Layton High is yet to be seen. Handy said, "No way can he ever be back at Layton High School. I don't think the district would dare try it."

Students and parents have mixed opinions on whether the choir director should return.

"I don't think he should come back. It makes our school look bad if we let him come back after what he did. And who knows if he will do it again," said Emily Young, 17, a senior at Layton High.

Kaylee Roberts, 18, a Layton High senior, said she wouldn't have a problem with Everton coming back to teach at the school, but it would be "a little weird to be taught by someone who is married to a girl my age." She added, "I don't think he really did anything wrong."

Parent Shonna Lappin of Layton said, "Any logically thinking adult feels this is an inappropriate activity — even if he chose to do the marriage thing. To think he could come back to the school and have it all work out seems not quite logical."

Some parents said Wednesday they didn't know the principal was on leave, and it would have been nice if the school or district would have informed them. "It would have been nice to have a little heads up on that," Lappin said.

With all the negativity swirling around Layton High, parents are concerned for their kids. And students are worried their school will have a bad reputation.

Marinda McBride, 16, a junior at Layton High, said, "It's weird to think that it's going on in your school. You always hear it goes on in other schools, but you never think it will happen in your school."

McBride said she hopes the community doesn't judge Layton High by a few bad incidents. "It's a way good school."

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Layton Mayor Steve Curtis, whose five children have gone through Layton High, said, "Rumors are rumors. None of us have been privy to the facts."

He added he believes his children have received a great education at Layton High. "They were proud to be Lancers," he said. "It's just an unfortunate situation."

Contributing: Geoff Liesik, Wendy Leonard.

e-mail: astewart@desnews.com TWITTER: AKStewDesNews

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