Millcreek School District Audit Raises Issues - WICU12 HD WSEE Erie, PA News, Sports, Weather, Events

Millcreek School District Audit Raises Issues

Posted: Updated:

Millcreek School District released the report of an independent audit conducted last fall and it's raising red flags.  The audit completed by the firm of Felix and Gloekler shows the district ended the 2012 school year with a $3.5-million dollar deficit, when some school officials and taxpayers believed there was a surplus.  

It also shows last July 23, someone approved the transfer of $5-million dollars from a capital projects fund to the general operations fund.  The audit firm did not return our calls, but we talked to audit specialist Vinnie Halupczynski at Malin Bergquist & Co.  He said capital bond funds for school districts and municipal organizations must follow very strict rules and regulations and should not be used for any other purpose.  "It is troublesome," said Halupczynski, "when those funds are transferred, what's the guarantee that the funds will be there to move back to the other account, for the capital needs.?" 

In this case, the funds were replaced on October 22, 2012, after the audit was underway.  But there could be a cost.  Bond proceeds in the public arena are tax exempt and moving them could impact that status and result in a fine from the IRS. But the biggest issue may be a failure of checks and balances that permitted the transfer.  " You typically would not want to have an environment where one individual perhaps could make this decision and move funds without another individual catching it in a timely manner," said Halupczynski. 

While he has no first hand knowledge of the issue, our expert said, "If someone in the course of their job detects an issue, he or she should inform the appropriate entities to correct the matter." 

Superintendent Michael Golde was in charge at the time of the transfer of funds.  He has been off the job on "administrative leave" since January 18.  So far, the district says that leave is a "personnel" matter and not because of any wrong doing.  We asked district solicitor, Tim Sennett which employees were aware of the inappropriate transfer of funds.  He said, "I'll have to look into that and get back to you."

Submit your event now
  • Most Popular StoriesMost Popular StoriesMore>>

  • Crash Sends Four to Hospital

    Crash Sends Four to Hospital

    Thursday, August 28 2014 11:18 PM EDT2014-08-29 03:18:07 GMT
    Four people were hospitalized, after a car accident by the bayfront Thursday evening.More >>
    Four people were hospitalized, after a car accident by the bayfront Thursday evening.More >>
  • Motorcyclist Crushed After Colliding With Semi Truck

    Motorcyclist Crushed After Colliding With Semi Truck

    Thursday, August 28 2014 10:37 AM EDT2014-08-28 14:37:38 GMT
    "He hits his brakes, somehow goes down on the motorcycle and somehow goes underneath the tires," Sgt. Traffic Investigator Jeff Annunziata says.It was 5:30p.m. Wednesday evening, when police say a 53-year old man from Millcreek, who has not yet been identified, fails to brake in time for a semi truck traveling eastbound on West 12th Street.More >>
    "He hits his brakes, somehow goes down on the motorcycle and somehow goes underneath the tires," Sgt. Traffic Investigator Jeff Annunziata says.It was 5:30p.m. Wednesday evening, when police say a 53-year old man from Millcreek, who has not yet been identified, fails to brake in time for a semi truck traveling eastbound on West 12th Street. More >>
  • Motorcycle Driver Hospitalized after Colliding with Car

    Motorcycle Driver Hospitalized after Colliding with Car

    Wednesday, August 27 2014 7:48 PM EDT2014-08-27 23:48:05 GMT
    A motorcycle driver is in the hospital after he was thrown from his bike Wednesday afternoon.More >>
    A motorcycle driver is in the hospital after he was thrown from his bike Wednesday afternoon.More >>
  • Gannon

    Gannon Celebrates Opening of the New Recreation Center

    Gannon Celebrates Opening of the New Recreation Center

    Friday, August 29 2014 4:10 PM EDT2014-08-29 20:10:01 GMT
    Erie, PA - It is an exciting day for Gannon University and the City of Erie as the Recreation Center is dedicated transforming an entire city block. It features a 12,000-square-foot addition with a glass front facing West Fourth Street and a complete interior renovation that includes new locker rooms, and areas for wrestling and a new acrobatics and tumbling program.Sr. Reporter Paul Wagner is covering the event LIVE for us and we will have more at 12:30 on WICU 12 News at 12:30 and an update...More >>
    Erie, PA - It is an exciting day for Gannon University and the City of Erie as the Recreation Center is dedicated transforming an entire city block. It features a 12,000-square-foot addition with a glass front facing West Fourth Street and a complete interior renovation that includes new locker rooms, and areas for wrestling and a new acrobatics and tumbling program.Sr. Reporter Paul Wagner is covering the event LIVE for us and we will have more at 12:30 on WICU 12 News at 12:30 and an update...More >>
  • Waldameer Prepares for Water Park Expansion

    Waldameer Prepares for Water Park Expansion

    Thursday, August 28 2014 4:20 PM EDT2014-08-28 20:20:42 GMT
    Waldameer Amusement Park will close for the season after Labor Day. But owners won't have a chance to relax. They expect to have the busiest off season in park history.Construction crews will arrive in town next Tuesday, to start preliminary work on a $10 million expansion of the water park.More >>
    Waldameer Amusement Park will close for the season after Labor Day. But owners won't have a chance to relax. They expect to have the busiest off season in park history.Construction crews will arrive in town next Tuesday, to start preliminary work on a $10 million expansion of the water park. More >>
  • Fish for $1 In PA on Labor Day

    Fish for $1 In PA on Labor Day

    Friday, August 29 2014 2:04 PM EDT2014-08-29 18:04:00 GMT
    The PA Fish and Boat Commission is enticing folks to come out and fish this weekend.For those who want to cast a line, but don't want to pay the full price for a fishing license, you can get a license for just one dollar to fish on Labor Day.With fees, the total price comes to $2.70.It's a way for the Commission to encourage people to spend part of their day off of work, enjoying the outdoors.So, on Labor Day, you can fish anywhere in the Commonwealth with the discounted license.For a list of...More >>
    The PA Fish and Boat Commission is enticing folks to come out and fish this weekend.For those who want to cast a line, but don't want to pay the full price for a fishing license, you can get a license for just one dollar to fish on Labor Day.With fees, the total price comes to $2.70.It's a way for the Commission to encourage people to spend part of their day off of work, enjoying the outdoors.So, on Labor Day, you can fish anywhere in the Commonwealth with the discounted license.For a list of...More >>
  • Familiar Ship Docked at Dobbins Landing

    Familiar Ship Docked at Dobbins Landing

    Thursday, August 28 2014 1:56 PM EDT2014-08-28 17:56:03 GMT
    Starting Thursday, the Brig Niagara will be joined by another tall ship on the bayfront, called the Peacemaker.More >>
    Starting Thursday, the Brig Niagara will be joined by another tall ship on the bayfront, called the Peacemaker.More >>
  • Local Church Buys Former Telatron Building

    Local Church Buys Former Telatron Building

    Thursday, August 28 2014 10:28 PM EDT2014-08-29 02:28:04 GMT
    After sitting vacant for years, the former Telatron building is getting a new owner and new life. Lake Erie Christian Fellowship officially purchased the building in federal court for $670,000. The church will now move from the West 38th Street plaza into two of the old Telatron buildings just blocks away. "We've been renting for seven years now,” said Lake Erie Christian Fellowship Pastor Bryan Kowalczyk. “So getting into a building that's twice the size of what we were in and being able to...More >>
    After sitting vacant for years, the former Telatron building is getting a new owner and new life. Lake Erie Christian Fellowship officially purchased the building in federal court for $670,000. The church will now move from the West 38th Street plaza into two of the old Telatron buildings just blocks away. "We've been renting for seven years now,” said Lake Erie Christian Fellowship Pastor Bryan Kowalczyk. “So getting into a building that's twice the size of what we were in and being able to...More >>
Powered by WorldNow
3514 State St. Erie, PA 16508
Newsroom: (814)454-8812
Toll Free: 1(800)454-8812
Business offices: (814)454-5201
WICU FCC Filing
WSEE FCC Filing
Share:
Share Stories
Submit your stories to our site!
Share Photos
Share your photos in our community galleries
Mobile:
Mobile Site
Be sure to stay constantly updated with the power of WICU12 and WSEE at your fingertips
Free Android App
Free iPhone App
Free iPad App
Storm Tracker App
Droid
iPhone
iPad
All content © Copyright 2000 - 2014 WorldNow and WICU. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.
                   WICU/WSEE - 3514 State Street Erie, PA 16508 - (814) 454-5201 - info@wicu12.com