Wednesday, January 30, 2019

"PA District Faces $172M in Debt and State Takeover after ‘A History of Mismanagement’"



Link to article from Pittsburgh Post-Gazette:




From the article:

“Everyone seems to have turned a blind eye as the school district marched toward financial disaster,” Mr. DePasquale said in a May 2016 news release. “The school board, along with the former superintendent and business manager all failed the students and parents of this district.”

The audit noted that its former business manager, Richard Liberto, simultaneously occupied roles as board secretary and treasurer, in violation of state law; failed to present financial updates to the board for five months in a row; and put off presenting the findings of a 2015 independent audit report.

That manager also ignored warnings in an architectural feasibility study that the district would need to increase taxes and cut staff to pay for the construction, state auditors said.

The board dismissed Mr. Liberto in March 2015 after it was revealed that the district had an $18 million deficit. A report detailing allegations against him cited a bus contractor who stole more than $260,000 in district fuel; under-budgeted tuition payments to an alternative school; and failure to properly oversee district credit cards.