ONLY ON 11: Penn Hills superintendent discusses district's financial state

PENN HILLS, Pa. — Penn Hills’ superintendent spoke exclusively with Channel 11 News about the school district’s financial state Wednesday, a day ahead of when the auditor general is expected to release his audit to the district.

• RAW: Penn Hills superintendent on district's financial situation (PART 1) (PART 2) (PART 3) (PART 4)

Superintendent Nancy Hines said the financial state of the district “exploded” on Mar. 24, 2015, when the Department of Education informed district leaders that there was not enough money coming in.

“(The Department of Education) said, ‘You're out of money. You're going to crash. There's not enough money coming in,’” Hines said.%

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Hines said she learned key payments were never made. With the district now $8.9 million in debt, Hines said she was also told a $4 million debt service payment was due within days. Utility shutoff notices were sent to the district.

Additionally, lenders discovered a troubling trend with district credit cards.

“I looked at receipts, and actual signatures, and I couldn't discern who they were. I said, ‘Who bought this?’ I don't know,” Hines said. “I will tell you, we were sloppy.”

Through tax increases, loans and overdraft forgiveness, leaders began attacking a so-called “unprecedented” emergency situation, Hines said.

District officials recently voted

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Hines said the move was part of an educational reform plan that began in 2014, one that was disrupted by the financial situation that she said few foresaw.

“We've heard references (that) it's the board. The board should have known. I'm going to disagree with that,” Hines said. “I was paid to be involved, and I was here every single day, and I didn't know.”

The district is expected to receive the state auditor general’s audit report Thursday. It will be released to the general public in three weeks.

Cox Media Group