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City Controller points to "questionable charges" in school district spending

The city's latest financial audit of the Philadelphia School District revealed over $11,000 in "questionable charges" on executive credit cards and employee mileage reports.  City Controller Alan Butkovitz says these small problems point to deeper issues with district financial management but school officials reply that he's making a mountain out of a molehill. 

By Bill Hangley

Listen Now [1 minute 8 seconds]

WHYY News, May 1, 2008

Butkovitz pointed out that the limited audit of employee expense accounts revealed a pattern of missing paperwork and procedural problems.  He called these symptoms of a "wider disregard for financial accountability."

 

"As Senator Everett Dirkson used to say back in the sixties, 'a billion here and a billion there and pretty soon you're talking about real money,'" said Butkovitz.  "Well, from our standpoint, a thousand here and a thousand there and pretty soon you're talking about millions.  Little things matter and they do add up, and it says a great deal about an organization when there's ample evidence that they ignore the little things."

 

Butkovitz's audit also revealed other problems with the district's capital budget, debt management and student activity funds.  While the district officials say some of the concerns have merit, spokesman Fernando Gallard said that Butkovitz went too far when he suggested the district was negligent.

 

"We are looking at these issues carefully," said Gallard. "We are minding every dollar and, by the way, we are also providing the Controller with the sufficient information he needs to be able to audit the books on the district."

 

Butkovitz wants to take a close look at $600 million in district contracts to community groups.  Gallard said that the Controller's office lacks the legal authority for that kind of audit but Butkovitz disagreed.


 

Additional Information

 

It's Our Money Blog: Doing the Math for the School District

 

Daily News Editorial: DO THE MATH, SCHOOL DISTRICT