Michael Nill, confirmed that the board had received a letter from Dr. Handlin rescinding the resignation. Parents were informed that Dr. Handlin had resigned in a Feb. 24 letter from the school citing ''questionable expenditures'' and a sizable deficit. ''We weren't given specifics,'' said one parent, who spoke only on the condition of anonymity, explaining that the school was a tight-knit community. Inquiries into Dr. Handlin's expenditures began in November when the school considered expanding into a neighboring building. The committee is appointed by the New York Friends Quarterly Meeting, the Quaker group that owns the school.
Some schools pay for a headmaster's housing and for entertainment related to fund-raising.
But another lawyer for Dr. Handlin, Louis Pechman, said his client believed his expenditures had been authorized. Mr. Betz said audits would be conducted quarterly rather than yearly. Plans for expansion have been deferred. Privacy Information Stay connected to the news that interests you with free e-mail alerts from The New York Times.