I did, in context as you suggested and it seems that the behavior may be a reason, but it is not the primary reason, for his cancellation. the expenditure is.
The sex and drugs are allegations. The excessive expenditures were proven.
I understand your point. It reads as though the principal has a bigger problem with the display of wealth. Perhaps he doesn't want to be seen as a "stick in the mud" as much as a liberal. Nevertheless, cudos for his nerve to cancel and stand up to the irate parents.