A former Kalispell school employee accused of embezzling thousands of dollars in high school activity money pleaded innocent Thursday in Flathead County District Court to felony theft.

Cynthia Lynn Upwall, 44, has been free on her own recognizance since a Feb. 22 appearance in Flathead County Justice Court.

While she is free, Upwall - who voluntarily returned from California to face the embezzlement charges - is to have no contact with any victims or potential witnesses.

Her trial is scheduled for the July jury term.

While Upwall has admitted stealing $17,500 - mostly in gate receipts - prosecutors are convinced the actual amount taken is much greater, Flathead County Attorney Ed Corrigan has said.

An investigation launched by the Kalispell Police Department in December found substantially more than $17,500 in unaccounted-for cash deposits to Upwall's bank accounts.

But authorities won't know the exact amount taken from School District 5 until prosecutors sit down with Upwall and her attorney in the coming weeks and go over financial records.

Hired by the school district in 1999, Upwall was the Flathead High School activities bookkeeper for six years and held the same position at Glacier High School when it opened last fall.

Suspicions of embezzlement were aroused after a new employee working with Upwall at Glacier High School noticed some undeposited checks, written to Flathead High School and signed by Upwall, from 2003 and 2004.

When school district officials confronted Upwall, she confessed to taking $17,500. But an internal audit and second independent audit conducted by the school district could only show that about $15,000 was missing from student activities funds.

Upwall agreed to make full restitution by July 1. To date, she has repaid more than $14,000.

If convicted of felony theft, Upwall could face up to 10 years in prison and a $50,000 fine.

Reporter Nicholas Ledden may be reached at 758-4441 or by e-mail at nledden@dailyinterlake.com