The David School and its director have been under investigation by the attorney general for several months, and Thursday more information about the school's financial situation came out during a hearing.

During the hearing David School Principal Diantha Daniels testified that the school's finances are in big trouble.

"We are right on the brink of having a school that isn't even functioning," said Daniels.

Daniels said it was so bad that the school lunch program was cut, employee health insurance was canceled without any warning, and she said director Danny Greene told the staff to cut the school year short. She said she thinks that was a strategic move to avoid paying the staff for another pay period.

"I ordered the tassels for graduation and put them on my own credit card so that we could have graduation," said Daniels.

Whether the school has a functioning board of directors has also been in question, and Daniels said she has never had any contact with any board members except Greene, who has allegedly been misusing school funds.

"If we wanted to put gas in the van for example we would email or call Mr. Greene and ask him if we could put gas in the van and how much," said Daniels.

The judge appointed five new board members for the school, saying that the school provides a great need for students in the area.

"The David School was being managed by Mr. Daniel Greene. The court finds that he was acting outside the scope of his authority as director of the David School (...) It is the sincere hope of this court that the David School shall be able to operate in the future. It definitely provides a need for the community," said Floyd County Circuit Court Judge Johnny Ray Harris.

Greene declined to comment.

The judge asked the new board members to meet within ten days.