The district is expected to pursue prosecution against one or more individuals for the missing money, which district auditors uncovered after an anonymous tip, spokeswoman Felecia Ward said.

Former school operations officer Robin Harkins, who retired last month as the investigation unfolded, and a female teacher are "persons of interest," a source close to the investigation said.

Harkins, who is in her early 40s, could not be reached for comment last night. She retired March 25 when asked to explain what had happened to the money, Ward said.

Not implicated, the source said, are principal Michael Silverman; former principal Kathy Pizzimenti-Murphy, who now heads George Washington High School; or other principals who served between fiscal 2003-04 and February, the period being investigated.

A final report from Inspector General John F. Downs is due tomorrow. School officials are expected to take the case to the District Attorney's Office, but that decision rests with the School Reform Commission, Ward said.

The missing money had been collected from students and various fund-raisers for activities related to graduation, the prom and extracurricular functions, Ward said.

Between $85,000 and $100,000 is believed missing, the source said, calling it one of the largest amounts ever to be reported missing from a Philadelphia school.

As a precaution, Silverman in February assumed oversight of the school's finances, including the activities account, Ward said.

Silverman could not be reached for comment yesterday.

Pizzimenti-Murphy said Harkins had worked as a bookkeeper.

"I remember her books being very together and very competent and very accurate," said Pizzimenti-Murphy, who left Germantown at the end of the 2004-05 school year.

But she said she was aware that questions had surfaced later.

The district began to look at the school's finances in the beginning of the school year after an anonymous complaint, the source said.

A preliminary audit in October found no irregularities, but recommended further investigation, Ward said.

District auditors and Downs began a full investigation in December, Ward said.

The Rev. Leroi Simmons, a Germantown minister who volunteers at the school and is a member of Parents United for Public Education, said word of the audit and allegations had upset him.

"It's hard to fathom how there were no checks and balances. They couldn't afford that," he said. "I really have very little sympathy or patience with somebody who would steal from these children."