The Penn Hills School District, already beset with financial and personnel turmoil, asked police Monday to investigate a possible misuse of credit cards and funds, although police officials say it’s unclear how much money may have been misappropriated.
Acting superintendent Nancy Hines “offered what the district believes to be documented evidence of theft and fraud. As this matter involves personnel, no further comments will be offered at this time,” district spokeswoman Teresita Kolenchak said in a news release issued Monday afternoon.
Penn Hills police Detective Teresa Gongaware is leading the investigation, which is expected to last about a week, Chief Howard Burton said. District officials turned over paperwork and asked police to investigate about 2 p.m. Monday.
It’s too soon to say if anyone will be charged or how much money was involved, though it “doesn't appear to be too high” of an amount, Chief Burton said.
The school board recently authorized and insisted on immediate audits of all business practices, and this weekend, an internal investigation “reached a level, whereby it became appropriate and prudent to involve” police, Ms. Kolenchak said.
Those audits were initiated as the district prepares its budget for the 2015-16 school year and is negotiating with lenders over terms of a loan for up to $18 million. The 3,900-student district has postponed two special voting meetings on district finances in the past two weeks, citing incomplete negotiations with lenders, including loan repayments.
Allegheny County Common Pleas Judge Michael A. Della Vecchia approved a petition from the district April 22 allowing the district to borrow money to cover an anticipated $10 million shortfall for the upcoming school year, in addition to an existing $8.9 million deficit.
The school board contended that misleading information about the district’s budget culminated in the need for the district to borrow funds to cover everyday expenses. Repayment could increase the district’s property tax rate by 1 mill.
In late January, then-superintendent Thomas Washington was relieved of his duties as part of a separation agreement that paid him through April. Director of business Richard Liberto was placed on paid leave March 24, a day after Moody’s Investors Service announced it had downgraded the district’s bond rating.
A special voting meeting is scheduled for 7 p.m. Wednesday to consider the terms of the district’s loan, district officials said Monday.
Clarece Polke contributed. Lexi Belculfine: lbelculfine@post-gazette.com or 412-263-1878. Twitter: @LexiBelc.
First Published: May 18, 2015, 10:45 p.m.
Updated: May 19, 2015, 2:47 a.m.
