BENTON, Tenn. — Although a former Polk County teacher won’t be prosecuted for money missing from school fundraisers, a judge ruled this week that the Polk County Board of Education was within its rights to fire him in the case.

Jerri Bryant, chancellor for the 10th Judicial District, this week upheld the dismissal of former Copper Basin High School teacher Mark Stone on charges of unprofessional conduct, inefficiency and neglect of duty.

But Chancellor Bryant said in her opinion that she thought the penalty was too severe.

Mr. Stone said Wednesday he couldn’t comment on the case.

Mr. Stone was suspended without pay after the school board in August 2006 began investigating the loss of $400 from a fundraiser. He was fired in May 2007 and later filed suit contesting his termination.

A July audit by the state comptroller’s office showed more than $3,300 collected from T-shirt sales, pizza coupons and the like were unaccounted for. The audit stated that Mr. Stone, the football and softball coach, was responsible for collecting the funds, but there were no records showing what happened to the money.

Chancellor Bryant’s ruling agreed that Mr. Stone neglected his duty “and was inefficient in the reporting or handling of funds.” She also indicated that the Board of Education acted properly in the proceedings for his termination.

But she said Mr. Stone was only 11 months from retirement and was not charged with wrongdoing.

“The court is of the opinion that punishment did not fit the crime,” Chancellor Bryant wrote.

The audit was given to the district attorney’s office for possible prosecution, but officials last week said there was no way to prove whether the money was stolen or if so, who took it.

“We looked at all the information and we won’t seek an indictment unless we have a reasonable chance of a conviction,” Assistant District Attorney Drew Robinson said Wednesday.

Mr. Stone’s attorney, Steve Crump, said he would have to review the judge’s ruling commenting on it, but he praised the decision not to prosecute his client.

“We are very pleased with the approach the district attorney took in this case,” Mr. Crump said.

He contended that Mr. Stone did nothing illegal and that school officials failed to follow proper procedures.

Polk County Director of Schools James Jones said the principal and bookkeeper at Copper Basin High School were terminated and the school has reformed its procedures for handling money.

“As a school board we never said anyone stole money, only that they were neglectful,” Mr. Jones said.

Mr. Stone ran for and won a seat on the Polk County Board of Education in August.