Employer and moral issue - Preschool?

I was working for this preschool and it was the first year running. The owner and teacher was terrible, rarely there, never had a plan, basically let the kids rule the place, no structure, no schedule. I think parents really started to see that and know a lot of them won't come back next year. However, I'm having this issue about a government grant she was issued to start up the business. I'm not sure of how valid the info is, but in doing research there is a few grants she could have qualified for, so I believe her when she says she got at least one. She claims she got $20,000 and it's all been spent. I know the business itself cost her $7000 to buy, and there is probably $500 worth of stuff within the preschool. The toys are mostly from the previous owners, and used from garage sales. There is no way that the place is worth $20,000, and we only make $12.50/hour so it's not like the grant went to us.

I'm choked about this and I don't know what to do or who to contact. I want it to be known she has obviously used this money for herself or her family. The place hasn't even been opened a year yet, where could it have all gone???

Please someone help me. Should I report this person, and if so how!?

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