State launches audit of Penn Hills SD

This browser does not support the video element.

PENN HILLS, Pa. — Channel 11 News has learned that the state auditor general has launched an audit of the Penn Hills School District.

Recently, there have been concerns that the district is having financial and operational problems.

“We need to find out what happened and come up with a solution for it,” parent Brenda McDevitt said.

FREE APPS | NOW | FACEBOOK | TWITTER

The audit will cover July 2012 through June 2015.

https://twitter.com/WPXIAaronMartin/status/634750767560294400

The district ran a $9 million budget deficit in the 2014 fiscal year. Since then, it’s fallen deeper into debt, raising real estate taxes and offering early retirement to employees to try and get on sound financial footing.

“When the school district basically announces out of nowhere that they have an $18 million hole and they need a loan to eventually make payroll, we’ve got to get in there and figure out exactly how that happened,” said Pennsylvania Auditor General Eugene DePasquale.

DePasquale will examine Penn Hills’ finances, how the district manages contracts and the use of school credit cards.

“I definitely want it taken care of and for them to get to the bottom of it so the kids can get the money spent for their education and future,” said parent Bob MacGregor.

The school has cut back on costs both big and small in an effort to save money.

"We welcome the visit by the Auditor General and will cooperate in any and every way. We view it as good news that will help close out discovery and aid recovery efforts," said Dr. Nancy Hines, Penn Hills Superintendent