The nine-count indictment against Judy Radcliff, who was principal of West End Elementary until February 2003, accuses her of conspiracy to obtain funding from the school district between March 2000 and January 2003.
"In part of the conspiracy, Judy Radcliff would use her authority as principal of the West End Elementary School to submit false claims and cause her co-conspirators to be paid for services or goods that were never provided to the school system," said state auditor Phil Bryant at a Jackson news conference Monday.
"It's a deplorable action and it's most troubling to me, to all of us involved, that the children are the real victims here," said Supt. Sylvia Autry at a Meridian news conference.
Radcliff resigned after she was approached by the state auditor as part of the federal-state investigation.
Four others were also charged in the conspiracy and identified by name only; Sandra Todd, Joycelyn Wilson, Tammie Davis and Carolyn Evans.
Authorities said they were not employees of the school district.
The Associated Press contributed to this report.