Wednesday, September 16, 2015

State Audit Finds Gary School District's Finances In Disarray

A lengthy audit report made public by the State Board of Accounts found the Gary school district's financial records in such disarray that auditors could not conclude whether claimed bank balances and spending reports were accurate according to the Northwest Indiana Times. The state auditing agency also wonders whether the school district can continue operating as a going concern because of its negative cash balances.

State auditors complained that school officials failed to maintain records showing employee pay rates and hours worked, co-mingled federal grant awards with other district funds so auditors couldn't determine whether the grant money had been properly spent and submitted inaccurate financial information to the state Department of Education.

Auditors found that one-third of equipment purchased with federal dollars was not listed in school property records. The school's graduation rate was inaccurate because of how students who withdrew from school recorded. The district was found to have an operating deficit of $23.7 million with large sums still owed to some vendors, including the federal government, NIPSCO, AT&T and the Gary Sanitary District. The district has long-term debt of $92 million.


Anonymous said...

Democracy does not work well in the region because, in part, the culture of absolute corruption there. While on the IEERB Board Gary came before us and ISTA was almost making apologies for the performance of the Gary School Boards errors. Their lawyer basically threw up his hands in a nolo contendere expression as if to ask what could be done with such little material to work with. Well meaning people, of course, but stupid, ignorant, and unaware of it.

Sir Hailstone said...

Gary Schools isn't the only whacked out board in Gary. It seems the Airport Board is about to get smacked with a lawsuit from the company that runs the "gas station" on the airfield. The Board is "running short" of money (likely needing laundering to payoff someone) and trying to jack the rents and fees paid to the Board by the airfield tenants in mid-lease.

7:34 - There's corruption because the D's aren't afraid of getting caught. No way in hell they'll ever lose an election. Ward Chairs and Dem County Chair pretty much handpicks the officeholders. Elections are a mere formality.