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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20130&cosponId=15313
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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: September 29, 2014 01:30 PM
From: Representative Angel Cruz
To: All House members
Subject: Requesting a Forensic Audit to provide transparency into Philadelphia School District’s finances
 
*THIS IS A REVISION OF THE PREVIOUS CIRCULATED CO-SPONSORSHIP SENT ON 09/09/2014*

Colleagues,

On Wednesday, Governor Corbett signed the law imposing a $2-per-pack tax on cigarettes sold in Philadelphia to help fund the city's cash-strapped schools. This new levy is anticipated to generate $70 million to $90 million per year for the struggling school district. With this in mind, I will be re-introducing my resolution that calls for the PA Auditor General to conduct a forensic audit of the school district. The forensic audit would aim to provide a greater degree of transparency into the Philadelphia School District’s finances, particularly its expenditure and use of federal, state and city funds.

My resolution has received the support of counterparts on both sides of the aisle, and will provide the transparency and accountability that is needed to prevent the misuse and abuse of school district funds, including those garnered from this new cigarette tax. This updated resolution no longer includes pre-cigarette tax language.

I plan to introduce the resolution shortly and wanted to offer you an opportunity to sign on as cosponsors if you so choose. Thank you in advance for your consideration. If you have any questions or concerns, please contact my Harrisburg office at (717) 705-1925.

Sincerely,

Angel

PREVIOUS CO-SPONSORS: O'BRIEN, M.; BISHOP; BROWNLEE; YOUNGBLOOD; AND McCARTER


In the near future, I will introduce a resolution urging the Auditor General of the Commonwealth, with the assistance of the City Controller of Philadelphia, to conduct a forensic audit of the Philadelphia School District. The audit would aim to provide a greater degree of transparency into the District’s finances, particularly its expenditure and use of federal, state and city funds.

As many of you know, the Philadelphia School District's finances appear to reflect a gap between revenues and expenses that will continue to grow if left uncorrected. The school district’s expenditures have outpaced revenues, requiring significant reductions in services to students. These cuts to education programs and services are an injustice to the students who continue to suffer as a result of the district’s financial turmoil. The state cannot in good conscience continue to spend increasing amounts of taxpayer money on the School District of Philadelphia without a greater level of accountability regarding how the district and School Reform Commission spends the funding it currently receives.

Under my resolution, the forensic audit would provide a complete picture of the district’s finances, expenditures and use of funds and grants over the last five fiscal years. The audit would also address any improprieties, negligence or misuse of funds received by the school district. Within six months of the adoption of the resolution, a report of the findings along with recommendations that would aid in fixing the school district's current fiscal crisis would be submitted to the General Assembly.

Please join me in calling for answers regarding the school district's current financial status and ensuring that funds are being allocated more appropriately and responsibly in the future. Thank you in advance for your consideration.

If you have any questions or concerns, please contact my Harrisburg office at 717-705-1925



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Introduced as HR1061